Hostplus has announced its interim end of year results for the financial year ended 30 June 2021, accomplishing best-ever single-year performances across a range of its most popular investment options, including its default Balanced (MySuper), Indexed Balanced and Socially Responsible Investment (SRI) Balanced options, which collectively account for 90 per cent of the Fund’s options that its members have their retirement savings in.
The Balanced (MySuper) option delivered a net return of 21.32 per cent while the Fund’s next most popular option, Index Balanced, delivered 18.88 per cent for the year to 30 June 2021 . Hostplus members invested in its SRI Balanced option received a return of 21.82 per cent for the same period1.
When taken collectively with the other options that enjoyed record performances, such as Conservative Balanced, Shares Plus and Australian and International Equities, Hostplus delivered an annual net return performance across the Fund that has seen nine out of ten of its 1.26 million members receive a return that was the highest ever achieved in a single financial year for the option(s) they have their super invested in.
This performance was achieved during a year which saw Hostplus PST’s assets under management grow considerably to $68 billion, which is a 38.6 per cent increase on the previous year.
These single-year results represent an exceptionally positive outcome for the Fund’s members, many of whom have endured a challenging year as a result of the COVID-19 pandemic-induced economic and related community hardships that have particularly affected Australia’s hospitality, tourism and allied industry sectors. It also attests to the conviction and robustness of the Fund’s investment strategy, that has weathered a period of volatility and uncertainly which has been a feature of investment markets globally over this recent period.
Hostplus members have been rewarded by and benefited from the Fund’s for-member-profit ethos and consistent approach to its members’ best interests. This is characterised by its strong diversification and a prudent allocation to high quality listed, unlisted and direct assets, maintaining low, fixed and simple administration fees2, and maintaining its notable long-term investment performance track record3.
With its origins in the hospitality, tourism, recreation and sports sectors, Hostplus is today widely recognised as the lifetime fund of choice for Australians and employers from a broad range of backgrounds and industries.
The release of the Fund’s end of year results closely follows its recent announcements that it is actively working towards two mergers which once completed will see its membership and assets under management also grow considerably, providing greater scale, capability and other benefits for Hostplus members and its growing number of contributing employers.
David Elia, Hostplus’ Chief Executive Officer said the end of financial year performance was the result of a well-diversified and executed investment strategy and would give further confidence to the Fund’s ever growing member base.
“First and foremost, we are delighted to have delivered a range of best-ever achieved annual return results for our members, whose financial future and achievement of a dignified retirement is our number one focus and priority. The results that we announce today are a strong validation of our investment beliefs and approach that has served to position us exceptionally well to deliver these outcomes for our members,” said Mr. Elia.
“Many of our members have gone through a tough year with COVID-19’s business and community restrictions and the impact on our economy more broadly, which has in turn seen many of them experience a temporary or permanent loss of jobs, or reduced hours. Throughout the second half of 2020 we dedicated ourselves to quickly providing a number of our members with immediate and much needed financial support as part of the Government’s Early Release of Superannuation scheme. While we steadfastly did so, we also never took our eye off the Fund’s principal objective, which is of course maximising the returns on and growth of our members’ retirement savings”, he added.
Hostplus’ Chief Investment Officer, Sam Sicilia added, “The fact that a number of our options, including all three Balanced options, had their best-ever financial years means that almost all members have had a great result for their super with us this year, giving me added confidence that the all-weather nature of our investment strategy remains resilient and fit-for-purpose”.
“With super, long-term investment performance matters a lot. I am pleased that Hostplus has remained one of the consistently best-performing super funds in Australia over the long-term”.3
“Hostplus’ track record of being a top performer over rolling five, ten, fifteen and twenty-year periods3 we expect will again be confirmed when SuperRatings publishes its survey for the year period to 30 June later this month,” said Mr. Sicilia.
Mr. Elia concluded, “As we enter a new period of growth and development for the Fund, I’d like to assure our members that we continue to remain alert and motivated to adapting and continuing to identify and make high-quality investments and develop and launch innovative and solution-focused products and services.
“We are proud to be stewards of our members’ retirement savings, a role we have dedicated ourselves to successfully for over thirty continuous years, and always with our members’ best financial interests our motivation and sole purpose”.
1 For accumulation members
2 APRA Annual fund-level Superannuation Statistics 30 June 2020, issued 26 March 2021. Top 20 industry super funds (not for profit) based on total assets under management. Administration fees comparison using SuperRatings SMART fees as at 14 May 2021 based on a super account balance of $50,000.
3 SuperRatings Fund Crediting Rate Survey – SR50 Balanced (60 – 76) Index, May 2021.
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Issued by Host-Plus Pty Limited ABN 79 008 634 704, AFSL 244392 as trustee for the Hostplus Superannuation Fund (the Fund) ABN 68 657 495 890, MySuper No 68 657 495 890 198. This information is general advice only and does not take into account your personal objectives, financial situation or needs. You should consider if this information is appropriate for you in light of your circumstances before acting on it. Please read the relevant Hostplus Product Disclosure Statement (PDS), available at www.hostplus.com.au before making a decision about Hostplus. Past performance is not a reliable indicator of future performance and should never be the sole factor considered when selecting a superannuation fund.