As a profit-for-member superannuation fund, Hostplus is run only to benefit members. It is our duty to deliver the best retirement outcomes to our members. We also widely support, and invest in, the hospitality, tourism, recreation and sport sectors that our members work in, live and love. These responsibilities guide every decision we make, and great care is taken to ensure each action fulfils our duties to our members.
Responsible investment is an important part of our investment approach that helps us better manage risk and optimise retirement outcomes for our members.
Responsible investment involves incorporating environmental, social and governance (ESG) factors into investment decisions and active ownership. Responsible investment beliefs direct our approach, which involves:
Hostplus is committed to responsible investment across all its investment activities, including all geographic locations, all asset classes, all structures and all styles.
To find out more about our approach to responsible investment, you can read our Responsible Investment Policy.
Hostplus is a signatory to the Australian Asset Owner Stewardship Code (the Stewardship Code) and is pleased to have adopted all its six principles.
Being a signatory to the Stewardship Code allows us to continue to proactively manage and disclose the stewardship activities we undertake on behalf of our members.
These activities are consistent with our desire to create value for members by influencing companies to change their behaviour in ways which protect and enhance long-term, sustainable value.
To see how we implement the code, view the statement below:
“As a global long-term investor and signatory to the United Nations-supported Principles for Responsible Investment, Hostplus acknowledges that climate change will have a wide range of consequences that may impact our investment portfolio. We are committed to considering climate change in selecting and assessing the Fund’s investments in companies, sectors, regions and asset classes.”
While climate change is only one component of Hostplus’ ESG considerations, we recognise it is one of the largest economic challenges facing investors today – physically, socially and legally.
We recognise climate change as a financial risk to the fund's investments, which includes the risk of costs associated with physical damage to the fund's assets resulting from climate change impacts on the weather, regulatory changes and other costs to transition to a lower-carbon economy and litigation risk. Like other financial risks, climate change risks are taken into account to the extent they are relevant to the fund's overall investment strategy and investment portfolio.
As a responsible trustee, we are committed to improving our understanding of Hostplus’ exposure to material climate change opportunities and risks across companies, sectors, regions and asset classes. Such risks and opportunities are complex, often global in nature, and addressing them effectively frequently entails collaborative approaches.
As a fund, we respect the concern and commitment shown by members of our community who are working to confront this problem, as well as those who have different investment preferences. We share many community members’ belief in the importance of addressing climate change and think the best approach for our Fund is to consider climate change as a financial risk and incorporate such considerations into our investment decisions and manager selection to the extent possible.
As individuals and as a community, we extensively rely on the products and services of companies in the fossil fuel industry for so much of what we do every day – the heating and lighting of our buildings, fuelling our transportation, as well as running our computers and appliances. As a long-term investor, it is difficult for us to reconcile boycotting a whole class of companies as we do not believe this represents a ‘silver bullet’ approach to the investment challenges posed by climate change.
Furthermore, divestment can cause company valuations to fall where they are more likely to shift from public markets to private equity funds, which have lower reporting obligations. Such a shift could hurt transparency and limit everyone’s ability to engage with Management at these companies in discussion around climate change. We prefer to exercise these rights ourselves and that’s what our ownership of these companies allows us to do.
Hostplus’ investment strategy for each investment option is carefully considered by the Trustee, with assistance from our investment advisor.
The considerations take into account many different themes that impact investment markets around the world. One of the major structural themes is climate change.
Additionally, the Trustee stress tests Hostplus’ investment strategy for numerous scenarios, including scenarios which consider climate change. These stress tests help to inform decisions around the appropriate investment strategy.
With climate change being such an important consideration for future investment returns, we are looking to further incorporate it into our investment approach over time.
As a shareholder, Hostplus favours engagement over divestment.
In this context, engagement means two-way constructive communication between us and investee companies on matters such as the organisation’s performance, strategy, ESG issues, leadership, quality and level of reporting.
Our policy is to retain exposure to a broad range of sectors and seek to create change within companies through engagement, rather than divest from a company or sector and lose influence. Notwithstanding, to comply with Australia’s laws, or to satisfy Australia’s obligations as a signatory to international treaties, we have decided not to invest in particular companies or sectors. Such is the case with the Fund’s Controversial Weapons Divestment Policy whereby Hostplus does not invest in companies involved in the development, production, maintenance or sale of controversial weapons1.
In order to maximise our ability to constructively engage with multiple companies we primarily engage with companies collectively through the Australian Council of Superannuation Investors (ACSI), which represents a number of Australian and international asset owners.
ACSI seeks to influence companies through constructive engagement with their boards about material ESG issues, with the aim of promoting long-term shareholder value and minimising risk. Some examples of ESG risks discussed are company board diversity and independence, remuneration report recommendations, carbon asset risk, human rights in supply chains and sustainability reporting disclosure.
By taking a collective engagement approach, we are able to exert greater influence beyond our own shareholding in an investee company and to manage resources more effectively. As an ACSI member, Hostplus also actively influences ACSI’s priority engagement themes and companies each year.
At Hostplus, we take our proxy voting rights very seriously.
It is Hostplus’ policy to vote the proxy rights associated with all of our Australian and international equities holdings and we are committed to publicly disclosing all proxy voting records.
You can find the latest record of Hostplus’ recent proxy voting activity below.
Hostplus is a signatory to the United Nations-supported Principles for Responsible Investment (PRI).
These principles establish a collective international framework for institutional investors to integrate ESG considerations into their investment decision-making.
The principles are:
Each year, the PRI surveys signatories on their responsible investment practices. The reported information is published through public transparency reports and assessed by the PRI. This year, Hostplus was proud to have achieved an A+ rating for our Responsible Investment Strategy and Governance as part of the 2020 PRI Annual Benchmarking Survey. We also received ratings at or above the median for all other reported asset classes.
Read our PRI Transparency Report and find further information on the PRI assessment methodology.
Contributing more to local communities, the environment and our members.
Hostplus believes that innovative sustainable assets not only contribute to local communities and help to preserve the environment, they will also be profitable investments both now and in the future. Which means more money for our members to enjoy in their retirement.
Hostplus members are currently investing in a wide range of award-winning properties, infrastructure assets, and companies which can be viewed via the link below.
We have also committed over $1 billion to Australian venture capital managers, including funds that are building water treatment systems, autonomous taxis and cars, and supporting clean energy funds to create new ways to produce, store, distribute, own and trade renewable energy.
You can find out more about our socially responsible assets, by following this link:
As the saying goes, it doesn't pay to put all your eggs in one basket. The same is true for investing. The key to successfully managing risk is through diversification – or spreading your investments across a range of asset classes or types of investments, so you have exposure to different markets.
Hostplus understands that markets can fluctuate, which is why we invest in a wide range of assets diversified between countries, industries and asset types.
In contrast to our peers, some of which have higher allocations to bonds, our Balanced portfolio is invested unlisted assets, such as direct property, infrastructure, credit and private equity, which typically provide strong, stable returns when equity markets turn.
For more information on our portfolio diversification, you can view our investment holdings across each asset class below.
|Hostplus investments and investment managers||% of Total Assets|
|Airlie Funds Management Pty Ltd (Active Australian Equity)||1.2%|
|Airlie Funds Management Pty Ltd (Industrial Australian Equity)||0.3%|
|Allan Gray Australia Pty Ltd||1.0%|
|Citigroup Transition Australian Equities||0.0%|
|Balanced Equity Management Pty Limited||1.5%|
|Greencape Capital Pty Ltd (Australian Equitiy)||2.0%|
|Firetrail Ltd (High Conviction)||1.0%|
|IFM Investors Pty Ltd (Buyback)||0.0%|
|IFM Investors Pty Ltd (Enhanced Indexed)||5.4%|
|IFM Investors Pty Ltd (Small Cap)||0.5%|
|L1 Capital Pty Ltd||0.8%|
|Paradice Investment Management Pty Ltd (Small Cap)||0.7%|
|Paradice Investment Management Pty Ltd (Mid Cap)||1.0%|
|Paradice Investment Management Pty Ltd (Large Cap)||1.7%|
|Tanarra Capital Australia Pty Limited||0.5%|
|Vinva Australian Equity Alpha Extension Fund – Vinva Investment Management Limited||0.8%|
|Yarra Capital Management Limited (Australian Equities)||0.9%|
|Yarra Capital Management Limited (Emerging Leaders)||0.6%|
|Apostle Dundas Global Equity Fund – Dundas Global Investors Limited||1.9%|
|Baillie Gifford Overseas Limited||3.5%|
|Citigroup Transition International Equities||0.0%|
|Hosking Partners LLP||2.1%|
|IFM Investors Pty Ltd (Indexed Global Equities)||4.0%|
|Independent Franchise Partners, LLP||2.6%|
|Ninety One Australia Pty Limited||0.9%|
|Martin Currie Investment Management Ltd||1.0%|
|Maverick Long Enhanced Fund Ltd – Maverick Long Enhanced Ltd||0.3%|
|Maverick Long Enhanced Fund Ltd – Series B – Maverick Long Enhanced Ltd||0.3%|
|Northcape Capital Pty Ltd||1.7%|
|Neuberger Berman Australia Pty Limited||1.1%|
|Orbis Global Equity Fund – Orbis Investment Management Limited||2.5%|
|Paradice Investment Management Pty Ltd (Global Small Cap)||1.0%|
|RWC Asset Management LLP||1.7%|
|T. Rowe Price Australia Limited||0.5%|
|Wellington International Management Company Pte Ltd (Asia ex-Japan Contrarian Equity)||0.9%|
|Wellington International Management Company Pte Ltd (Global Contrarian Equity)||1.8%|
|Artesian Hostplus VC Fund 1, ILP – Artesian Venture Capital Fund of Funds Management, I.L.P||0.1%|
|Artesian Hostplus China Venture Capital Fund 1 – Artesian Venture Capital Fund of Funds Management, I.L.P||0.1%|
|Artesian Venture Capital Fund of Funds, ILP – Artesian AFOF Pty Ltd||0.0%|
|Artesian Venture Capital Fund 2, ILP – Artesian AFOF Pty Ltd||0.0%|
|Australia Private Equity Fund No.1 – Continuity Capital Partners Pty Limited||0.0%|
|Australia Private Equity Fund No.2 – Continuity Capital Partners Pty Limited||0.0%|
|Blackbird Ventures 2015 Follow-On Fund – Blackbird Ventures Pty Limited||0.2%|
|Blackbird Ventures 2015, LP – Blackbird Ventures Pty Limited||0.0%|
|Blackbird Hostplus Trust – Blackbird Ventures Pty Limited||0.4%|
|Blackbird Ventures 2018 Follow-On Fund – Blackbird Ventures Pty Limited||0.4%|
|Blackbird Ventures 2018, LP – Blackbird Ventures Pty Limited||0.0%|
|Blackbird After The Car Trust – Blackbird Ventures Pty Limited||0.0%|
|Carnegie Healthcare Fund, LP – M.H. Carnegie & Co. Pty Limited||0.0%|
|Carnegie Innovation Fund, LP – Carnegie Venture Capital Pty Limited||0.0%|
|Carnegie Innovation Fund II, LP – Carnegie Venture Capital Pty Limited||0.0%|
|Carnegie Private Opportunities Fund No.1 – M.H. Carnegie & Co. Pty Limited||0.0%|
|Carnegie Private Opportunities Fund No.2 – M.H. Carnegie & Co. Pty Limited||0.1%|
|Carthona Capital Venture Fund 1 (Part A) – Carthona Capital FS Pty Ltd||0.1%|
|Carthona Capital Venture Fund 1 (Part B) – Carthona Capital FS Pty Ltd||0.0%|
|Carthona Capital Venture Fund 1 (Part C) – Carthona Capital FS Pty Ltd||0.0%|
|Carthona Capital Venture Fund (HP) No.2 – Carthona Capital FS Pty Ltd||0.0%|
|Crown Co-Investment Opportunities PLC II – LGT Capital Partners (Ireland) Limited||0.1%|
|Crown Europe Middle Market II Plc – LGT Capital Partners (Ireland) Limited||0.1%|
|Crown European Buyout Opportunities II Plc – LGT Capital Partners (Ireland) Limited||0.0%|
|CSIRO Innovation Fund 1, LP – Main Sequence Ventures Ltd||0.0%|
|CSIRO Innovation Follow-On Fund 1 – Main Sequence Ventures Ltd||0.0%|
|Five V Fund (SF1) III, LP – Five V Capital Pty Ltd||0.0%|
|HL-HP Global Investments LP – HL-HP Global Investments GP LLC||0.0%|
|Hermes GPE PEC III LP – Hermes GPE LP||0.2%|
|Hermes GPE PEC IV LP – Hermes GPE LP||0.2%|
|Hostplus ROC Private Equity Trust – Roc Capital Pty Limited||0.1%|
|Hostplus US EM CI LP - Flexstone Partners, LLC||0.1%|
|Hostplus US EMP, LLC - Series 1 – Flexstone Partners, LLC||0.1%|
|Hostplus US EMP, LLC - Series 2 – Flexstone Partners, LLC||0.0%|
|HP Special Investment Fund S.C.Sp – LGT Capital Partners (Ireland) Limited||0.1%|
|Industry Super Holdings Pty Ltd||0.2%|
|IFM Australian Private Equity Fund 3 – IFM Investors Pty Ltd||0.0%|
|IFM Australian Private Equity Fund 4 – IFM Investors Pty Ltd||0.0%|
|IFM International Private Equity Fund 1 – IFM Investors Pty Ltd||0.0%|
|IFM International Private Equity Fund 2 – IFM Investors Pty Ltd||0.0%|
|IFM International Private Equity Fund 3 – IFM Investors Pty Ltd||0.0%|
|IPG Hostplus 2018 Trust Class A – IP2IPO Australia HP Pty Ltd||0.1%|
|IPG Hostplus 2018 Trust Class H – IP2IPO Australia HP Pty Ltd||0.1%|
|Kelso Investment Associates X, LP - Kelso & Company, L.P.||0.0%|
|Lexington Capital Partners VIII, L.P – Lexington Partners L.P||0.2%|
|Lexington Co-investment Partners III, L.P – Lexington Partners L.P||0.2%|
|Lexington Co-investment Partners IV, L.P – Lexington Partners L.P||0.3%|
|Members Equity Bank Pty Limited||0.4%|
|MHC Hostplus Co-Investment Trust – M.H. Carnegie & Co. Pty Limited||0.0%|
|MRCF 3 (HP) Trust – BCP3 Pty Ltd||0.1%|
|MRCF 5 - BCP3 Pty Ltd||0.0%|
|MRCF Hostplus BTF – BCP3 Pty Ltd||0.0%|
|Myriota Pty Ltd.||0.0%|
|Partners Group Secondary 2008 (EUR), S.C.A., SICAR – Partners Group Management Ltd||0.0%|
|Partners Group Secondary 2011 (EUR), S.C.A., SICAR – Partners Group Management Ltd||0.1%|
|Partners Group Client Access 19 L.P. Inc. – Partners Group Management Ltd||0.0%|
|Partners Group Client Access 19A L.P. Inc. – Partners Group Management Ltd||0.0%|
|Partners Group Client Access 25 L.P. Inc. – Partners Group Management Ltd||0.0%|
|Partners Group Dandenong, L.P – Partners Group Management Ltd||0.0%|
|Partners Group Direct Investments 2012 (USD) ABC, L.P. – Partners Group Management Ltd||0.3%|
|Partners Group Direct Equity 2016 – Partners Group Management Ltd||0.5%|
|Private Equity US Opportunities II, L.P – Flexstone Partners, LLC||0.1%|
|Private Equity US Opportunities III, LP – Flexstone Partners, LLC||0.3%|
|Roc Asia Pacific Co-Investment Fund III – Roc Capital Pty Limited||0.1%|
|Roc China Growth Fund – Roc Capital Pty Limited||0.1%|
|Safar Partners Fund, L.P. – Safar Partners GP, LLC||0.1%|
|Safar Partners Hostplus Special Opportunity Fund, L.P. – Safar Partners GP, LLC||0.0%|
|Siguler Guff HP China Opportunities Fund LP – Siguler Guff HP China GP, LLC||0.3%|
|Siguler Guff HP Opportunities Fund II, LP – Siguler Guff HP II GP, LLC||0.6%|
|Siguler Guff Small Buyout Opportunities Fund II, L.P – Siguler Guff SBOF II GP, LLC||0.2%|
|Square Peg Australia 2015 LP – Square Peg Capital Pty Ltd||0.0%|
|Square Peg Global 2015 Trust – Square Peg Capital Pty Ltd||0.2%|
|Square Peg CI 2015 Trust – Square Peg Capital Pty Ltd||0.2%|
|Square Peg 2018, LP – Square Peg Capital Pty Ltd||0.0%|
|Square Peg Global 2018 Trust – Square Peg Capital Pty Ltd||0.1%|
|Stafford Cap TDCFII - Stafford Capital Partners||0.0%|
|Telstra Ventures Fund II Sidecar, L.P. – T Ventures Fund II GP, Ltd||0.0%|
|Wilshire Private Markets Funds – Wilshire Australia Pty Limited||0.1%|
|Wilshire Private Markets Asia No.1 Fund – Wilshire Australia Pty Limited||0.0%|
|Wilshire Private Markets Asia No.2 Fund – Wilshire Australia Pty Limited||0.0%|
|Campus Living Villages Fund – Campus Living Funds Management Limited||0.4% - 0.6%|
|FSI Infrastructure Fund (Anglian Water Group Sector) – First Sentier Investors (Australia) RE Ltd||0.2%|
|Darling Harbour – Capella Management Services Pty Ltd||0.2% - 0.4%|
|European Diversified Infrastructure Fund II SCSp – First Sentier Investors||0.5%|
|Gardior Fund A – Infrastructure Units (IU) – Gardior||0.1%|
|Gardior Fund B – Infrastructure Units B (IUB) – Gardior||0.0%|
|GDIF Hedged Feeder Fund 2 – First Sentier Investors||0.1%|
|GIP Gemini Fund LP – Global Infrastructure Partners||0.5%|
|IFM Australian Infrastructure Fund – IFM Investors Pty Ltd||2.6%|
|IFM International Infrastructure Fund – IFM Investors Pty Ltd||2.9%|
|Macquarie Global Infrastructure Fund III – Macquarie Specialised Asset Management Limited||0.0%|
|NSW Ports Consortium – Industry Funds Management Pty Ltd||0.2%|
|QGIF Iona Aggregator Trust – QIC Investments No. 1 Pty Ltd||0.1%|
|QIC Global Infrastructure Fund – QIC Limited||0.2%|
|QIC REV Investment Trust No. 1 – QIC Infrastructure Management No. 2 Pty Ltd||0.0%|
|Utilities Trust of Australia – H.R.L Morrison & Co Limited||0.6%|
|Australian Prime Property Funds (Retail, Commercial & Industrial) – Lendlease Investment Management||2.6%|
|Charter Hall Prime Industrial Fund – Charter Hall Funds Management Limited||1.0%|
|Charter Hall Prime Office Fund – Charter Hall Funds Management Limited||0.9%|
|ISPT Core Fund – ISPT Pty Ltd||3.4%|
|ISPT Development and Opportunities Fund II – ISPT Pty Ltd||0.0%|
|ISPT Non-Discretionary Residential Mandate – ISPT Pty Ltd||0.2%|
|ISPT Retail Australian Property Trust – ISPT Pty Ltd||0.6%|
|Invesco Core Real Estate USA (ICRE) Fund – Invesco Core Real Estate U.S.A., L.P.||0.5%|
|KAMOB Investors III, L.P. – Kayne Anderson Capital Advisors, L.P.||0.2%|
|Kayne Anderson Core Real Estate, L.P. – Kayne Anderson Core Real Estate Advisors I, LLC||0.4%|
|Lendlease Asian Retail Investment Fund 2 - Lendlease Investment Management||0.0%|
|Lendlease Asian Retail Investment Fund 3 - Lendlease Investment Management||0.6%|
|Lendlease Communities Fund 1 – Lendlease Investment Management||0.0%|
|Lendlease Sub-Regional Retail Fund – Lendlease Investment Management||0.2%|
|Long Weighted Investment Partnership (LWIP) Trust – Charter Hall Wholesale Management Limited||0.5%|
|Long Weighted Investment Partnership (LWIP) Trust II – Charter Hall Wholesale Management Limited||0.2%|
|Macquarie Real Estate Equity Fund 6 – Macquarie Admin Services Pty Limited||0.0%|
|QIC Australia Core Plus Fund – QIC Limited||0.0%|
|Select Property Portfolio No. 3 – AMP Capital Investors Limited||0.0%|
|U.S. Cities Multifamily Fund, L.P – U.S. Cities Multifamily Fund GP LLC||0.1%|
|U.S. Cities Multifamily Fund, L.P – U.S. Cities Industrial Fund GP LLC||0.3%|
|iShares Global Bond Index Fund – BlackRock Asset Management Australia Limited||2.3%|
|iShares Wholesale Aust Bond Index Fund – BlackRock Asset Management Australia Limited||1.4%|
|Macquarie True Index Australian Fixed Interest Fund – Macquarie Investment Management Australia Limited||0.3%|
|Super Loans Trust – ME Portfolio Management Ltd||0.0%|
|Citigroup Pty Ltd||1.4%|
|IFM Investors Pty Ltd||7.3%|
|Members Equity Bank Pty Ltd||0.4%|
|Apollo/Athene Dedicated Investment Program (B), L.P. – Apollo ADIP Advisors L.P.||0.1%|
|Athora Holding Ltd.||0.2%|
|Autonomy Capital Global Macro Fund L.P. – Autonomy Capital International Limited||0.3%|
|Bridgewater Pure Alpha Fund II, Ltd – Bridgewater Associates, Inc||0.0%|
|Ethical Leaders Balanced Fund – AMP Capital Funds Management Limited||0.2%|
|Fitzroy Horizons Fund – International Asset Management Limited||0.0%|
|GMO Systematic Global Macro Fund – GMO Australia Limited||0.0%|
|GSA Capital Partners Trend Fund – GSA Capital Partners LLP||0.0%|
|IPM Systematic Macro Fund – Macquarie Investment Management Australia Limited||0.0%|
|QIC Liquid Alternatives Fund (H) – QIC Limited||0.0%|
|Renaissance Institutional Diversified Alpha Fund LLC – Renaissance Technologies LLC||0.0%|
|Resolution Life Group Holdings L.P. – Resolution Life Group Holdings Ltd.||0.4%|
|Select Market Access Fund – Tangency Capital Ltd||0.6%|
|Apollo ST Fund Management LLC||0.8%|
|Apollo Offshore Structured Credit Recovery Fund IV Ltd – Apollo ST Fund Management LLC||0.7%|
|Cross Ocean Partners US SS Fund – Cross Ocean Partners Management LP||0.3%|
|IFM Specialised Credit Floating Feeder Fund – IFM Investors Pty Ltd||0.5%|
|Kayne Anderson Real Estate Debt II LP – Kayne Anderson Capital Advisors, L.P.||0.2%|
|Kayne Anderson Real Estate Debt III LP – Kayne Anderson Capital Advisors, L.P.||0.3%|
|Kayne Senior Credit III Offsh Fund L.P. – Kayne Anderson Capital Advisors, L.P.||0.3%|
|Loomis Sayles CLO II Ltd – Apollo ST Fund Management LLC||0.0%|
|Loomis Sayles Credit Opportunities Fund – Loomis, Sayles & Company LP||0.1%|
|Hayfin Hostplus L.P – HayFin Hostplus GP Limited||0.0%|
|HayFin Special Opportunities Credit Fund LP – HayFin Special Opportunities GP Limited||0.0%|
|HayFin Special Opportunities Fund II LP – HayFin Special Opportunities Fund II GP LP||0.2%|
|HayFin Special Opportunities Fund II USD Co-Invest LP – HayFin Special Opportunities Fund II GP LP||0.0%|
|HPK Partners, LLC – Kayne Anderson Capital Advisors L.P.||0.1%|
|Redding Ridge Holdings LP||0.6%|
|Willow Tree Fund I (Offshore), LP – Willow Tree Fund I (Offshore) GP, LLC||0.2%|
|Currency Overlay – Mesirow Financial Investment Management Inc.||0.3%|
|Direct Equities (ASX 300 shares & ETFs)||0.9%|