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 |
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Target return |
Accumulation: |
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Investment risk1 |
Medium to high (Negative returns expected in between 3 to less than 4 out of every 20 years) |
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Investment style |
Investments through diversified investment portfolio, including some growth assets and some lower risk investments. |
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Investment objective |
This option is diversified across a range of growth and defensive assets and aims to produce consistent returns over time. |
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Minimum suggested investment time frame2 |
Accumulation: |
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Asset allocation guidelines |
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Asset Class |
Range |
Strategic Asset Allocation Benchmark |
Australian Shares |
10 – 40% |
21% |
International Shares - Developed Markets |
10 – 40% |
21% |
International Shares - Emerging Markets |
0 – 15% |
8% |
Property |
0 – 30% |
13% |
Infrastructure |
0 – 30% |
12% |
Private Equity |
0 – 20% |
8% |
Credit |
0 – 20% |
7% |
Alternatives |
0 – 20% |
5% |
Diversified Fixed Interest |
0 – 20% |
0% |
Cash |
0 – 15% |
5% |
76%: Growth Assets |
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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. |
Private Equity
Infrastructure
Property
Fixed Income
Cash
Alternatives
Credit
Currency
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