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Balanced Investment Option

Hostplus' Balanced Option is our 'flagship' default investment option for superannuation members. Now, we offer SMSF investors a rare opportunity to share in Hostplus' industry-leading returns through direct investment in our Balanced Option.

The Balanced Option aims to maximise the net long-term investment returns for a given level of risk by utilising active management across a broad, highly diversified range of asset classes, including property, infrastructure, credit, alternatives, private equity and venture capital asset classes. Unlisted assets – including infrastructure, property and private equity – continue to provide important downside protection as they are not directly linked to equity markets.

Hostplus firmly believes in the importance of maintaining an actively managed, highly diversified investment portfolio. The main driving force behind the Balanced Option’s leading performance has been our investment strategy, which is based on 10- and 20-year investment objectives.

The underlying investments within the Balanced Option are managed by some of the world’s largest and top-performing asset managers, including IFM Investors, BlackRock, Wellington, ISPT and Bridgewater.

Balanced Option - Summary:

  • Investment objective: CPI plus 3% p.a. over 10 years and CPI plus 4% p.a. over 20 years
  • Investment risk: High (negative returns expected in between 4 to 6 out of every 20 years)
  • Investment style: Investments through an actively managed, highly diversified investment portfolio, including growth assets (e.g. equities) and defensive investments
  • Minimum suggested investment time frame: 5+ years

1. The level of investment risk is based on an industry-wide Standard Risk Measure. It shows the number of expected negative annual returns over a 20-year period.
2. The minimum suggested time frame is based on the risk and return profile of this option. The time frame considers volatility and the likelihood of negative annual returns in any one year.

Strategic Asset Allocation and Range

 Range SAA Benchmark
 Growth assets  75%
 Equity    
 - Australian shares 15 - 45% 23%
 - International shares

Developed Markets

10 - 30% 22%

 Emerging Markets

 0 - 15% 8%

- Private Equity

 0 - 15% 6%
 Infrastructure 0 - 15% 6%
 Property 0 - 15% 4%
 Other    
 - Credit 0 - 10% 2%
 - Alternatives 0 - 10% 3% 
 Defensive assets  25%
 Infrastructure 0 - 10% 6% 
 Property  0 - 20%  9%
 Fixed income 0 - 20% 0%
 Cash 0 - 10% 0%
 - Credit 0 - 10%  5%
 - Alternatives 0 - 10% 5%

Equity

  • Australian shares
  • Airlie Funds Management Pty Ltd (Active Australian Equity)
  • Airlie Funds Management Pty Ltd (Industrial Australian Equity)
  • Allan Gray Australia Pty Ltd
  • Balanced Equity Management Pty Limited
  • Greencape Capital Pty Ltd (Australian Equity)
  • Firetrail Ltd (High Conviction)
  • IFM Investors Pty Ltd (Buyback)
  • IFM Investors Pty Ltd (Enhanced Indexed)
  • IFM Investors Pty Ltd (Small Cap)
  • L1 Capital Pty Ltd
  • Paradice Investment Management Pty Ltd (Small Cap)
  • Paradice Investment Management Pty Ltd (Mid Cap)
  • Paradice Investment Management Pty Ltd (Large Cap)
  • Pendal Group
  • Vinva Australian Equity Alpha Extension Fund – Vinva Investment Management Limited
  • Yarra Capital Management Limited (Australian Equities)
  • Yarra Capital Management Limited (Emerging Leaders)

International shares

  • Apostle Dundas Global Equity Fund – Dundas Global Investors Limited
  • Baillie Gifford Overseas Limited
  • Citigroup Transition International Equities
  • Cooper Investors Pty Limited
  • Hosking Partners LLP
  • IFM Investors Pty Ltd (Indexed Global Equities)
  • Independent Franchise Partners, LLP
  • Investec Asset Management Australia Pty Limited
  • Martin Currie Investment Management Ltd
  • Maverick Long Enhanced Fund Ltd – Maverick Long Enhanced Ltd
  • Northcape Capital Pty Ltd
  • Neuberger Berman Australia Pty Limited
  • Orbis Global Equity Fund – Orbis Investment Management Limited
  • Paradice Investment Management Pty Ltd (Global Small Cap)
  • RWC Asset Management LLP
  • Vaughan Nelson Investment Management LP
  • Wellington International Management Company Pte Ltd (Asia ex-Japan Contrarian Equity)
  • Wellington International Management Company Pte Ltd (Global Contrarian Equity)

Private Equity

  • AM Aerogel Holding, LLC – Flexstone Partners, LLC
  • Artesian Hostplus VC Fund 1, ILP – Artesian Venture Capital Fund of Funds Management, I.L.P
  • Artesian Hostplus China Venture Capital Fund 1 – Artesian Venture Capital Fund of Funds Management, I.L.P
  • Artesian Venture Capital Fund of Funds, ILP – Artesian AFOF Pty Ltd
  • Australia Private Equity Fund No.1 – Continuity Capital Partners Pty Limited
  • Australia Private Equity Fund No.2 – Continuity Capital Partners Pty Limited
  • Blackbird Ventures 2015 Follow-On Fund – Blackbird Ventures Pty Limited
  • Blackbird Ventures 2015, LP – Blackbird Ventures Pty Limited
  • Blackbird Hostplus Trust – Blackbird Ventures Pty Limited
  • Blackbird Ventures 2018 Follow-On Fund – Blackbird Ventures Pty Limited
  • Blackbird Ventures 2018, LP – Blackbird Ventures Pty Limited
  • Blackbird After the Car Trust – Blackbird Ventures Pty Limited
  • Carnegie Healthcare Fund, LP – M.H. Carnegie & Co. Pty Limited
  • Carnegie Innovation Fund, LP – Carnegie Venture Capital Pty Limited
  • Carnegie Innovation Fund II, LP – Carnegie Venture Capital Pty Limited
  • Carnegie Private Opportunities Fund No.1 – M.H. Carnegie & Co. Pty Limited
  • Carnegie Private Opportunities Fund No.2 – M.H. Carnegie & Co. Pty Limited
  • Carthona Capital Venture Fund 1 (Part A) – Carthona Capital FS Pty Ltd
  • Carthona Capital Venture Fund 1 (Part B) – Carthona Capital FS Pty Ltd
  • Carthona Capital Venture Fund 1 (Part C) – Carthona Capital FS Pty Ltd
  • Crown Co-Investment Opportunities PLC II – LGT Capital Partners (Ireland) Limited
  • Crown Europe Middle Market II Plc – LGT Capital Partners (Ireland) Limited
  • Crown European Buyout Opportunities II Plc – LGT Capital Partners (Ireland) Limited
  • CSIRO Innovation Fund 1, LP – Main Sequence Ventures Ltd
  • Flexstone Partners Equity II, L.P – Flexstone Partners, LLC
  • Flexstone Partners US Opportunities III, L.P – Flexstone Partners, LLC
  • Hermes GPE PEC III LP – Hermes GPE LP
  • Hermes GPE PEC IV LP – Hermes GPE LP
  • Hostplus ROC Private Equity Trust – Roc Capital Pty Limited
  • HP Special Investment Fund S.C.Sp – LGT Capital Partners (Ireland) Limited
  • Industry Super Holdings Pty Ltd
  • IFM Australian Private Equity Fund 3 – IFM Investors Pty Ltd
  • IFM Australian Private Equity Fund 4 – IFM Investors Pty Ltd
  • IFM International Private Equity Fund 1 – IFM Investors Pty Ltd
  • IFM International Private Equity Fund 2 – IFM Investors Pty Ltd
  • IFM International Private Equity Fund 3 – IFM Investors Pty Ltd
  • IPG Hostplus 2018 Trust Class A – IP2IPO Australia HP Pty Ltd
  • IPG Hostplus 2018 Trust Class H – IP2IPO Australia HP Pty Ltd
  • Kelso Investment Associates X, LP - Kelso & Company, L.P.
  • Lexington Capital Partners VIII, L.P – Lexington Partners L.P
  • Lexington Co-investment Partners III, L.P – Lexington Partners L.P
  • Lexington Co-investment Partners IV, L.P – Lexington Partners L.P
  • Members Equity Bank Pty Limited
  • MHC Hostplus Co-Investment Trust – M.H. Carnegie & Co. Pty Limited
  • MRCF 3 (HP) Trust – BCP3 Pty Ltd
  • MRCF Hostplus BTF – BCP3 Pty Ltd
  • Partners Group Secondary 2008 (EUR), S.C.A., SICAR – Partners Group Management Ltd
  • Partners Group Secondary 2011 (EUR), S.C.A., SICAR – Partners Group Management Ltd
  • Partners Group Direct Investments 2012 (USD) ABC, L.P. – Partners Group Management Ltd
  • Partners Group Direct Equity 2016 – Partners Group Management Ltd
  • Partners Group Client Access 19 L.P. Inc. – Partners Group Management Ltd
  • Partners Group Client Access 19A L.P. Inc. – Partners Group Management Ltd
  • Partners Group Client Access 25 L.P. Inc. – Partners Group Management Ltd
  • PEUSO II FPG Holding LLC – Flexstone Partners LLC
  • Roc Asia Pacific Co-Investment Fund III – Roc Capital Pty Limited
  • Siguler Guff HP China Opportunities Fund LP – Siguler Guff HP China GP, LLC
  • Siguler Guff HP Opportunities Fund II, LP – Siguler Guff HP II GP, LLC
  • Siguler Guff Small Buyout Opportunities Fund II, L.P – Siguler Guff SBOF II GP, LLC
  • Square Peg Australia 2015 LP – Square Peg Capital Pty Ltd
  • Square Peg Global 2015 Trust – Square Peg Capital Pty Ltd
  • Square Peg CI 2015 Trust – Square Peg Capital Pty Ltd
  • Square Peg 2018, LP – Square Peg Capital Pty Ltd
  • Square Peg Global 2018 Trust – Square Peg Capital Pty Ltd
  • Wilshire Australia Private Markets Pooled Superannuation Trust – Wilshire Australia Pty Limited
  • Wilshire Private Markets Asia No.1 Fund – Wilshire Australia Pty Limited
  • Wilshire Private Markets Asia No.2 Fund – Wilshire Australia Pty Limited

Infrastructure

  • Campus Living Villages Fund – Campus Living Funds Management Limited
  • CFS Infrastructure Fund (Anglian Water Group Sector) – Colonial First State Property Limited
  • Darling Harbour – Capella Management Services Pty Ltd
  • European Diversified Infrastructure Fund II SCSp - First State Investments (UK) Limited
  • IFM Australian Infrastructure Fund – IFM Investors Pty Ltd
  • IFM Hostplus Trust – IFM Investors Pty Ltd
  • IFM International Infrastructure Fund – IFM Investors Pty Ltd
  • Macquarie Global Infrastructure Fund III – Macquarie Specialised Asset Management Limited
  • NSW Ports Consortium – Industry Funds Management Pty Ltd
  • QGIF Iona Aggregator Trust – QIC Investments No. 1 Pty Ltd
  • QIC Global Infrastructure Fund – QIC Limited
  • QIC REV Investment Trust No. 1 – QIC Infrastructure Management No. 2 Pty Ltd
  • Utilities Trust of Australia – H.R.L Morrison & Co Limited

Property

  • Australian Prime Property Funds (Retail, Commercial & Industrial) – Lend Lease Investment Management
  • BlackRock Asia Property Fund III – BlackRock Investment Management (UK) Limited
  • 'Charter Hall Prime Industrial Fund – Charter Hall Funds Management Limited
  • Charter Hall Prime Office Fund – Charter Hall Funds Management Limited
  • ISPT Core Fund – ISPT Pty Ltd
  • ISPT Development and Opportunities Fund I – ISPT Pty Ltd
  • ISPT Development and Opportunities Fund II – ISPT Pty Ltd
  • ISPT Non-Discretionary Residential Mandate – ISPT Pty Ltd
  • ISPT Retail Australian Property Trust – ISPT Pty Ltd
  • Invesco Core Real Estate USA (ICRE) Fund – Invesco Core Real Estate U.S.A., L.P.
  • Kayne Anderson Core Real Estate, L.P. – Kayne Anderson Core Real Estate Advisors I, LLC
  • Lend Lease Asian Retail Investment Fund – Lend Lease Investment Management
  • Lend Lease Communities Fund 1 – Lend Lease Investment Management
  • Lend Lease Sub-Regional Retail Fund – Lend Lease Investment Management
  • Long Weighted Investment Partnership (LWIP) Trust – Charter Hall Wholesale Management Limited
  • Long Weighted Investment Partnership (LWIP) Trust II – Charter Hall Wholesale Management Limited
  • Macquarie Real Estate Equity Fund 6 – Macquarie Admin Services Pty Limited
  • Select Property Portfolio No. 2 – AMP Capital Investors Limited
  • Select Property Portfolio No. 3 – AMP Capital Investors Limited

Fixed Income

  • iShares Global Bond Index Fund – BlackRock Asset Management Australia Limited
  • iShares Wholesale Aust Bond Index Fund – BlackRock Asset Management Australia Limited
  • IFM Investors Pty Ltd (Enhanced Cash)
  • Macquarie True Index Australian Fixed Interest Fund – Macquarie Investment Management Australia Limited
  • Specialised Credit Fund – Industry Funds Management Pty Ltd
  • Super Loans Trust – ME Portfolio Management Ltd

Cash

  • Citigroup Pty Ltd
  • IFM Investors Pty Ltd
  • Members Equity Bank Pty Ltd

Alternatives

  • Bridgewater Pure Alpha Fund II, Ltd – Bridgewater Associates, Inc
  • Responsible Investment Leaders Balanced Fund – AMP Capital Funds Management Limited
  • GMO Systematic Global Macro Fund – GMO Australia Limited
  • GSA Capital Partners Trend Fund – GSA Capital Partners LLP
  • IPM Systematic Macro Fund – Macquarie Investment Management Australia Limited
  • QIC Liquid Alternatives Fund – QIC Limited
  • Vinva Asia Pacific Equity Long-Short Fund – Vinva Investment Management Limited

Credit

  • Apollo ST Fund Management LLC
  • Apollo Offshore Structured Credit Recovery Fund III Ltd – Apollo ST Fund Management LLC
  • Barings LLC
  • Cross Ocean Partners US SS Fund – Cross Ocean Partners Management LP
  • Kayne Anderson Real Estate Debt II LP – Kayne Anderson Capital Advisors, L.P.
  • Kayne Anderson Real Estate Debt III LP – Kayne Anderson Capital Advisors, L.P.
  • Kayne Senior Credit III Offsh Fund L.P. – Kayne Anderson Capital Advisors, L.P.
  • Loomis Sayles CLO II Ltd – Apollo ST Fund Management LLC
  • Loomis Sayles Credit Opportunities Fund – Loomis, Sayles & Company LP
  • HayFin Special Opportunities Credit Fund LP – HayFin Special Opportunities GP Limited
  • HayFin Special Opportunities Fund II LP – HayFin Special Opportunities Fund II GP LP
  • HayFin Special Opportunities Fund II USD Co-Invest LP – HayFin Special Opportunities Fund II GP LP
  • Redding Ridge Holdings LP

Currency

  • Currency Overlay – Mesirow Financial Investment Management Inc.

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