Industry fund targets SMSFs with new investment offering
An industry super fund has launched a raft of new investment products aimed at SMSF trustees in an effort to better engage with SMSF investors and grow its funds under management.
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 is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.