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CPIplus

CPIplus is an innovative Hostplus account-based pension investment option that aims to deliver consistent returns over the long term.

CPIplus’ target return objective is designed to increase the consistency of investment returns while continuing to maintain the simplicity, flexibility, and liquidity of an account-based pension.

What's CPIplus?

CPIplus is designed to offer long-term returns that are more certain and less volatile than those typically available by investing in growth assets such as shares, while offering higher returns than those generally available by investing in conservative assets, such as cash.

CPIplus return objective is set in advance for each return period, currently 12 months from 1 July, and is calculated using a formula, CPI + ‘n’, where CPI is based on the average consumer price index rate for the last two quarters (and is updated each quarter) and ‘n’ is a predetermined rate of return (compounded daily over the Return Period) determined by Hostplus each year as part of its annual investment strategy review.

By setting a return above CPI (Consumer Price Index), CPIplus ensures that the returns generated exceed the level of inflation (as measured by CPI) hence minimising the impact of inflation on the real value of your investment returns. 

The CPIplus return is credited daily, and the formula provides for a minimum daily return floor of zero, meaning that irrespective of movements in CPI, the daily return of CPIplus will not be negative – even if the CPI rate for that period was negative.

As the returns for CPIplus are set for specified Return Periods (usually a year), based on a predetermined formula, its returns, for any given Return Period, are not influenced by the returns on the underlying investments of the option. This means the returns of CPIplus are not adversely impacted by any potential underperformance of its underlying investments.  Conversely, CPIplus returns are not affected by, or receive the benefit of, investment returns on underlying assets where these exceed the option's predetermined return. 

CPIplus balances your mix of risk and return  

CPIplus aims to deliver a low-risk, low-volatility investment option while continuing to maintain the simplicity, flexibility, and liquidity of an account-based pension. 

FAQs    

CPIplus’ return objective is set in advance for each return period, currently 12 months from 1 July, and is calculated using a formula, CPI + ‘n’, where CPI is based on the average consumer price index rate for the last two quarters (and is updated each quarter) and ‘n’ is a predetermined rate of return (compounded daily over the Return Period) determined by Hostplus each year as part of its annual investment strategy review.

By setting a return above CPI (Consumer Price Index), CPIplus ensures that the returns generated exceed the level of inflation (as measured by CPI) hence minimising the impact of inflation on the real value of your investment returns.

The CPIplus return is credited daily, and the formula provides for a minimum daily return floor of zero, meaning that irrespective of movements in CPI, the daily return of CPIplus will not be negative – even if the CPI rate for that period was negative.

The CPIplus return formula including the value for ‘n’ will be regularly reviewed by Hostplus, in accordance with existing investment strategy and policy settings, and adjusted for future Return Periods if considered appropriate or necessary.

The current return is 3% above the Consumer Price Index.

Please visit CPI Rates for updates

CPIplus provides Account Based Pension members with reduced volatility and improved certainty and stability on returns and helps mitigate several retirement-side risks including market, inflation, sequencing, and longevity risks.

As the returns for CPIplus are set for specified Return Periods (usually a year), based on a predetermined formula, its returns, for any given Return Period, are not influenced by the returns on the underlying investments of the option. This means the returns of CPIplus are not adversely impacted by any potential underperformance of its underlying investments. Conversely, CPIplus returns are not affected by, or receive the benefit of, investment returns on underlying assets where these exceed the option’s predetermined return.

There is an investment floor which means members will not receive a negative return if invested in this option.

CPIplus also provides pension members flexibility to access funds or switch options as per all other Hostplus investment options.

CPIplus is not a guaranteed investment option however, CPIplus is designed to provide a high level of assurance and confidence in meeting its stated return objective in most years. Additionally, CPIplus has an investment return ‘floor’ that means that irrespective of the performance of the option’s underlying investments in each period, members will not receive a negative return.

CPIplus is an investment option available to Hostplus Account Based Pension members and is not available to Transition to Retirement Pension or Accumulation phase members or Self-Managed super fund investors in Hostplus Self-Managed Invest (SMI). 

For existing Hostplus account-based pension members, it’s easy to switch using Pension Online. For all new Hostplus and new to pension members, you will need to apply for a Hostplus Account Based Pension via the digital or offline application form located at hostplus.com.au.  

CPIplus’ assets are invested in the same pool and alongside the Balanced option (pension phase) pursuant to the option's current investment strategy (noting that the assets of the Balanced option in the Accumulation and TTR phases are also invested in the same pool). CPIplus’ returns are determined by a mechanism whereby the option’s return objective is set in advance for specified Return Periods (usually a year), according to a predetermined return formula, CPI + ‘n’.  

This means that its returns, for any Return Period, are unaffected by the returns on the underlying investments of the option. While the returns of the CPIplus option are predetermined, the Balanced Option in the Accumulation phase receives the benefit of any excess market returns generated on the underlying assets of the CPIplus option and if the investment returns generated on the underlying assets of the CPIplus fall short of the predetermined return, the Balanced Option in the Accumulation phase makes up the shortfall.

There are no additional fees to invest in CPIplus. Hostplus’ account-based pension has a single administration fee of $4.50 per week which includes access to CPIplus and many other premixed, sector and individual manager investment options (note - additional fee applies to access Choiceplus investment option). And importantly, unlike many competitors, we don’t charge any additional asset-based administration fee on top of this. Investment costs vary, depending on the investment option(s) selected.

Full details of investment costs for CPIplus, and other investment options, are set out in the Product Disclosure Statement (PDS), which is available above. Please note, the total investment cost listed against the CPIplus option does not impact (diminish) the net value of return of CPIplus. These costs represent the cost incurred by the Balanced investment option (pension phase), which is where CPIplus assets are invested. CPIplus returns are based on a predetermined rate based on CPI + 'n'. No further investment costs or fee are deducted from that return.

As with all investments, there are risks that should be considered before deciding to invest. Please refer to the PDS (page 51) for further details on the risks specific to CPIplus. 

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 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.