Hostplus has developed a number of self-managed investment options, which it says will enable SMSF investors to pool their funds with the industry super fund and invest as unit holders in some of its main investment options.
Hostplus chief executive David Elia said the self-managed investment options will allow SMSF trustees to access distinctive assets ordinarily unavailable to retail investors.
The fund is initially offering SMSF investors access to six of its 23 investment options including its flagship balanced option, low-cost indexed balanced option, and its hero unlisted options IFM — Australian infrastructure, industry super property trust — Australian property and its diversified infrastructure and property options.
Mr Elia said that as well as now having the opportunity to access several of Hostplus’ fund managers and assets, SMSF investors would also benefit from reduced administrative, compliance and reporting responsibilities as well as being able to access Hostplus’ scale and expertise.
The new investment options, he said, demonstrate how two of Australia’s largest superannuation and pension sectors can work together for the benefit of SMSF investors and fund members alike.
“We will be bringing more innovative investment options and solutions to market soon, including a retirement option that will go a long way to reducing a number of key risks, including volatility of returns, that retirees often fear, without sacrificing flexibility or liquidity, or paying for costly guarantees,” Mr Elia added.
Hostplus group executive, member experience, Paul Watson explained that the fund had initially piloted the self-managed investment solution last year with SMSF investors.
“These early investors have been particularly complementary of our onboarding and initial investment registration solution, which is entirely digital and more frictionless than completing paper-based application forms and the like,” Mr Watson said.
“In light of the recent and various reviews of the financial services sector and superannuation, and the focus on the asset concentration, investment performance and other risks often involved in managing an SMSF, we believe our SMI solution assists SMSF investors to manage some of those risks while seeking to improve their cost-effectiveness and investment performance outcomes.”
miranda.brownlee@momentummedia.com
Balanced Fund Risk Profile ? I think this is great news as we may finally get some real information on ISA’s Balanced Funds that mostly run at about 90% Growth Assets. No wonder they perform well in growing markets and then in falling markets they simply don’t value down the unlisted assets.
[b]Hostplus “Balanced Fund” they say is their default fund is not anywhere near as Defensive as they say it is. [/b][b]They say 75% Growth Assets and 25% Defensive Assets.
Given 15% of those “Defensive” assets are Property and Infrastructure and then “Alternatives” (which they won’t tell you at all what they are? and they wont tell you how Property or Infrastructure are both defensive and growth assets or how they differentiate them). The rest of the Defensive Assets are 5% “credit” asset, and then 5% which is High Yield and Structured Credit (Note: structured credit, is code for CDO’s, remember the GFC anyone?)[/b]
Very interested to see some research house have a close look at these Risk profiles.