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Section 5. How we invest your money

The information in this document forms part of the Hostplus Superannuation Fund and Hostplus Personal Super Plan Product Disclosure Statement 1 July 2017.

It's now time to think about your investment options and building a secure future to help you afford the lifestyle you want when you retire. Your contributions will be automatically invested in the Hostplus Balanced (MySuper) option unless you choose a different investment option.

We encourage you to take an active interest in how your super is invested. It's your money, after all. That's why we offer a wide range of investment options to suit your investment objectives. And why we offer a free fact-finding consultation for your super from a licensed financial planner when you join.

Read on to find out more and also discover how you can add more to your super – a little extra now could mean a lot extra later.

The Hostplus Pooled Superannuation Trust (PST)

Hostplus invests via a Pooled Superannuation Trust (PST) which then invests into a variety of underlying funds.

Members should note that their net investment return will be based on changes in the PST's investment values. This is unlikely to affect your investment in any material manner.

Please select a section

5.1 Making an investment choice

To help you understand the importance of having the right investment mix, read our Introduction to investing at Section 5.7, then compare our investment options: pre-mixed options, sector investment options, individual manager options and ChoicePlus.

You can choose how your super is invested online through your Member Online account at hostplus.com.au. ChoicePlus investments can be chosen through the dedicated online ChoicePlus platform accessed via your  Member Online account. 

If you don't make an investment choice, we'll invest your super in our Balanced investment option.


5.2 Options for investing your account balance

Change your existing investment option only – this means that only your current balance will be invested in the investment option of your choice. All future contributions will be applied to the future investment option*. 

Change your future investment option only – this means that only your future contributions will be invested in the investment option of your choice. The investment strategy applying to any current balance will not be altered. All future contributions will be applied to your future investment option*.

Change your future investment option and existing investment option – this means that all your current balance and future contributions will be invested in the investment option of your choice. All future contributions will be applied to your future investment option*.

Make a one-off contribution or rollover investment choice only – this means that your one-off contribution or rollover will be invested in the investment option of your choice. The investment strategy applying to any current balance or your selected future contributions will not be altered and all future contributions will be applied to your future investment option*.

Please note that if you request a switch of your existing balance at any time after a one-off contribution or rollover, these monies will be considered part of your existing balance and will subsequently be moved in accordance with your switch request.

*Taxes, fees and costs incurred on your account are deducted from your nominated future investment option. If you do not have sufficient funds in your future investment option, these will be taken proportionally from your other investment options as applicable.


5.3 How your investment choice works

When you make a choice, Hostplus does not acquire an interest in the investment option on your behalf. Instead, you are notionally invested in the investment option. As part of our investment strategy, we would have predetermined an amount to be invested with any particular investment manager. Therefore, we have pre-existing contractual relationships with our underlying investment managers. We select managers and invest money with them via direct investment mandates or pooled trusts.

Accordingly, the investment managers provide the trustee with financial services. But they do not have a contractual relationship with our members.

As a member of Hostplus, you receive the net investment returns (positive or negative) allocated to your member account. This is made up of a combined earning rate of the underlying investment manager(s) from your selected investment option, less any applicable fees and taxes.

For example, Hostplus may have invested $10 million in Balanced Equity Management – Australian Shares. A member then exercises investment choice, and directs us to invest $10,000 of their account balance in that investment option. We do not invest a further $10,000 (on top of the $10 million already invested), but notionally allocate the net investment returns received from that investment option to the member’s account.

We may in our absolute discretion vary the available investment options (including assets approved for asset transfer) from time to time by adding or removing investment options. 

Please refer to 5.24 Change of investment managers for further information on what happens if we change an individual investment manager.


5.4 Choose one or more investment options

You can choose one or more of any of the investment options. For example, you can have 50% notionally invested in Shares Plus (Pre-mixed option), 25% in Property (Sector investment option) and 25% invested in Paradice Investment Management (Small Cap) (Individual manager option). The only requirement is that you must have a minimum of 1% in any selected option. For information about our direct investment option ChoicePlus, see the ChoicePlus investment guide

Three easy steps to help you make your investment choice    
1 Learn how the process works by reading this section and determine your investment style.

2

Take a look at the investment options offered by Hostplus.

3

Make your investment choice online through your Member Online account at hostplus.com.au

Please ensure you consider your individual portfolio (including assets/investments outside of superannuation) to minimise risks associated with investments that are not diversified in their own right.

Hostplus members can access high quality, low cost financial advice by Hostplus financial planners licensed by Industry Fund Services Ltd. Find out more about Industry Fund Services Ltd, ABN 54 007 016 195, AFSL 232514 at hostplus.com.au/advice.


5.5 Switching between investment options is easy and free

With Hostplus, you’re not locked into an investment option once you’ve made a choice. After all, your circumstances may change, your investment outlook may change or you may simply want to opt for a different approach. Switching is easy and free.

You can switch between investment options as often as you like without charge. Your switch request will become effective on the following Monday.

You can indicate your switch online through your Member Online account at  hostplus.com.au.

Note: If your switch is made through your online account by 11.59pm (AEST) on a Sunday, it will generally be processed the following Thursday (commencing from Thursday 8 September 2016) and backdated to Monday.


5.6 Multiple requests in the same week

In the case of multiple investment switch requests received in the same week, including cash transfers to or from Choiceplus, your latest request received will apply from the following Monday. Where you have made an investment switch or cash transfer request as well as a benefit payment request in the same week, the benefit payment instruction will override the investment switch or cash transfer and therefore your existing investment choice will apply. In the case of a partial benefit request, it will also override the latest investment switch or cash transfer for that partial amount.

Switch or transfer requests submitted during blackout periods (each January and July/August) may not be processed immediately as a result of allocating net investment returns to members’ accounts. You may still submit a switch or cash transfer request during this time and your switch or cash transfer request will still receive the correct effective date (for example the Monday immediately after your switch or cash transfer request was received).


5.7 An introduction to investing

Before making your investment choices, you should consider:

  • your attitude to risk and return.
  • your age and how long you will be investing for.
  • how prepared you are to accept variable returns in the short term in the interest of possibly getting a better potential long term result.
  • your attitude to the different types of investments.
  • other investments you may have and your future financial plans.

It also pays to do your homework. You could start with a licensed financial planner. 

Find out more about Industry Fund Services Ltd, ABN 54 007 016 195, AFSL 232514 at hostplus.com.au/advice.


5.8 What are asset classes?

You can invest your super in different types of assets. An asset is an investment used to gain a return. Assets are divided into asset classes such as cash, fixed income, property, infrastructure, equity and other (alternatives). They are generally described as ‘growth’ or ‘defensive’

  • Growth assetsGrowth assets generally provide relatively higher returns over the longer term with a corresponding higher level of risk (increased chance of a negative return and volatility). A high proportion of their returns are derived from capital growth. Examples include shares and some property investments.
  • Defensive assets. Defensive assets generally are lower risk (less chance of a negative return), with a corresponding expectation of lower returns over the longer term. A high proportion of their returns are derived from income (cash) flows. Examples include cash, term deposits and some fixed income investments. Some asset classes, such as infrastructure, property and alternatives may have growth and defensive characteristics.

Where assets such as infrastructure, property and alternatives derive a high proportion of their returns from strong income (cash) flows rather than capital growth, these assets may be classified as defensive. Where they derive a high proportion of their returns from capital growth rather than income (cash) flows these assets may be classified as growth.

Investment markets are difficult, if not impossible, to predict. Often, different asset classes will not all perform well or poorly at the same time because they react differently to influences such as economic growth, inflation, interest rates and exchange rate movements. A change which is positive for one asset class can have a negative effect on another.


5.9 Basic asset classes make up your investment portfolio

 

Equity

Infrastructure

What is it?

Represents an ownership interest in a business, trust or partnership. Equity investments include shares and private equity.

Represents the basic physical systems of a country, state or region including transportation, communication, utilities, and public institutions.

Infrastructure assets can also take the form of social infrastructure assets such as hospitals, schools and aged care facilities.

 

Shares

Represent part-ownership of a company through holding shares.

Private equity

Private equity involves investments in entities or vehicles that are not listed on a stock exchange. They can be based in Australia and overseas.

How does the investment

work?

Because shares represent a part of the company, returns vary according to how the company performs. Returns can come in two ways – dividends paid to shareholders (revenue) and the increase in value of the shares (capital gain). Shares can also decrease in value resulting in a capital loss.

Private equity investments are usually made to finance one or more stages of a company’s growth cycle, ranging from those in early stages of development to more mature businesses seeking capital. Private equity vehicles are used for many purposes including buying out the owners or founders of an existing business or asset.

Investments in infrastructure can be through direct investments in single assets, listed or unlisted pooled funds and investment through a fund of funds vehicle.

What’s the risk/return?

Inflation, interest rates, exchange rates (for international shares) and changes in market conditions will all have an effect on the value of shares, as does the performance of the company itself. Shares are considered the highest risk investment because they may experience significant changes in value. Despite their short-term volatility, shares have traditionally provided higher returns to investors – over the longer term – than all other asset classes.

The private equity market is less efficient and less regulated than the listed market. This inefficiency creates opportunities for skilled managers to add value. Given the greater risk associated with private equity, a return premium of at least 4 – 5% above listed markets is generally considered necessary.

The investment objective for investing in infrastructure is typically to provide returns of inflation plus 6 – 8% per annum, but with the chance of a return that’s lower than Australian and international shares, over a 5 – 10 year term.

Property

Fixed income

Cash

Other (Alternatives)

What is it?

Represents an investment in real estate where the earnings and capital value are dependent on cash flows generated by the property through sale or rental income.

 

The investment in property could be made either directly or via property trusts.

Represents a loan, placement or debt security. Loans are financial assets that are created when a creditor lends funds directly to a debtor, and are evidenced by documents that are non-negotiable. Placements are liabilities of entities not described as authorised deposit-taking institutions, e.g. State treasuries. Debt securities are securities which represent borrowed funds which must be repaid by the issuer with defined terms including the notional amount (amount borrowed), an identifiable return and maturity/renewal date.

Represents cash on hand and demand deposits, as well as cash equivalents. Cash equivalents represent short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

 

Cash investments may include deposits in a bank, investments in short-term money markets and other similar investments.

Almost any non-traditional investment strategy could be classified as an alternative investment. For example, hedge funds or credit investments (see section 5.15 . Investment terms in plain English for further information on Hedge Funds and Credit investments).

How does the

Investment work?

There are two ways that property can provide returns – by earning rental income (revenue) or by increasing in value over time (a capital gain). Property can also decrease in value resulting in a capital loss

The investment is used to finance the operations of Governments, organisations or businesses, and is paid back on an agreed date with interest, which is also agreed or ‘fixed’ before the loan commences.

Cash investments, such as your own bank account, don’t necessarily earn high returns, but they are usually very stable.

Alternative investments generally aim to achieve a return objective, rather than to outperform a specific sector goal.

What’s the risk/return?

Property is considered a moderate to high risk investment. Returns rely on general economic factors like inflation, interest rates and employment, as well as location and quality. While returns are generally higher than cash or fixed income, the value of property investments is also liable to change suddenly.

Fixed income is seen as a moderate risk investment. If interest rates change during the term of the loan, there will be capital gains or losses. Fixed income investments are generally less volatile over the short term than property or equity.

Cash is considered to be the lowest-risk investment because of its limited potential to rise and fall in value over the short term. However, this perceived safety comes at a price – cash investments typically may not earn enough to meet long-term goals like retirement.

Alternatives aim to produce returns in excess of cash over the long term. However its volatility over the long term is generally higher than that of fixed income.


5.10 Risk versus return

Risk and return are related, so the lower the risk usually the lower the expected return (or the lower the likelihood of a negative return). For a higher possible return, you increase the risk and the possibility of a negative return from year to year.

Hostplus investment options contain a mix of asset classes, to achieve their different risk/return objectives. Choosing to invest in sector investment options puts you in charge of selecting percentages of asset classes in your portfolio, depending on your investment objectives.


5.11 Asset classes are invested according to a style

Just as the different asset classes explain some of the different types of investments, there are many investment styles that describe how an investment is made, not just the form it takes. Here are some of the more common investment styles.

Passive: Sometimes referred to as ‘index management’, passive management seeks to achieve investment performance that is equal to an index or market returns (like the S&P/ASX100, for example). Passive managers achieve this by replicating the relevant index. The investment manager does not make judgements on future market movements or which investments may grow in value, so the expenses associated with passive management are generally lower than other investment styles.    

Active: This is the opposite of passive management and seeks to achieve returns above an index or other set benchmark. Active managers achieve this through asset allocation and investment selection. Active management is often paired with growth or value investment styles.    

Enhanced passive: This investment style is between passive and active management. It is actively managed within the benchmark stocks but the risks are also tightly controlled. Enhanced indexing is essentially risk-controlled, active management.    

Growth: A growth manager seeks to achieve capital gains from investments in companies they expect will have future growth in earnings. Typically, growth managers care less about price-earnings ratio and other ways of assessing the value of an investment, but focus purely on the earnings potential of an investment.    

Value: Value managers seek to buy investments that are temporarily under-priced, and to take profits when they appear overpriced. The price-earnings ratio is a key valuation measure.    

Top-down: A form of analysis that begins with forecasting broad economic trends, then assessing the impact on industries and finally, on individual companies. It is the opposite of bottom-up analysis.

Bottom-up: A form of analysis that begins with forecasting returns for individual companies, then moves to industries and finally the economy as a whole. It is the opposite of top-down analysis.


5.12 How the asset classes have performed

Investment markets are unpredictable. Past performance shows that over shorter periods, it’s almost impossible to predict which asset class will earn the highest rate of return. However, over the long-term, growth assets, like equity, have consistently earned a higher rate of return than defensive assets such as cash and fixed income.

Looking at the Benchmark returns over 25 years by Traditional asset class table, you can see that the returns for growth assets are more unpredictable than the returns for defensive assets. Australian and international shares have usually provided the highest returns over the long-term. Clearly, someone who invested in these asset classes would have done better than someone who put all their money in cash or fixed income over the same period.

While past performance is not a reliable indicator of future performance, it does give an insight into how each asset class has performed.

So, while it remains true that investment markets are hard to predict, different asset classes tend not to all move in the same direction, at the same time, or at the same speed. This is because the main asset classes react differently to influences such as growth, inflation, interest rates and exchange rates. A change that is good for one asset class can be bad for another. That’s why diversification is so important to investors. Using diversification you may capture the returns you want to keep, and reduce the volatility, or risk, you want to avoid.

It makes sense to diversify your investment mix – and with Hostplus it’s easy. We have provided a broad range of investment options which give you the opportunity to create your own mix based on your financial needs and personal circumstances.


5.13 Benchmark returns over 25 years by Traditional asset class

Growth Assets

Defensive Assets

Year ending 30 June

Australian Shares

International Shares

Property*

Fixed income

Cash

1992

13.4%

7.1%

-14.5%

22.1%

9.0%

1993

9.9%

31.8%

-5.0%

13.9%

5.9%

1994

18.5%

0.0%

7.0%

-1.1%

4.9%

1995

5.7%

14.2%

9.2%

11.9%

7.1%

1996

15.8%

6.7%

6.9%

9.5%

7.8%

1997

26.6%

28.6%

6.3%

16.8%

6.8%

1998

1.6%

42.2%

10.2%

10.9%

5.1%

1999

15.3%

8.2%

9.4%

3.3%

5.0%

2000

15.1%

23.8%

10.9%

6.2%

5.6%

2001

9.1%

-6.0%

10.4%

7.4%

6.1%

2002

-4.5%

-23.5%

9.9%

6.2%

4.7%

2003

-1.6%

-18.5%

11.1%

9.8%

5.0%

2004

21.7%

19.4%

11.9%

2.3%

5.3%

2005

26.0%

0.1%

13.4%

7.8%

5.6%

2006

24.0%

19.9%

17.2%

3.4%

5.8%

2007

29.2%

7.8%

19.1%

4.0%

6.4%

2008

-13.7%

-21.3%

14.7%

4.4%

7.3%

2009

-20.3%

-16.2%

-12.4%

10.8%

5.5%

2010

13.1%

5.2%

3.0%

7.9%

3.9%

2011

11.9%

2.7%

9.8%

5.6%

5.0%

2012

-7.0%

-0.5%

8.8%

12.4%

4.7%

2013

21.9%

33.1%

8.3%

2.8%

3.3%

2014

17.3%

20.4%

8.8%

6.1%

2.7%

2015  5.6% 25.2% 10.0% 5.6% 2.6%
 2016 0.9% 0.4% 12.7% 7.0% 2.2%

* Property assets may have both growth and defensive characteristics. Please refer to Section 5.8 What are asset classes? for more information.

Past performance is not a reliable indicator of future performance.
Source: JANA Investment Advisers Pty Ltd.

Market indices: Australian shares – S&P/ASX300 Accumulation Index, International shares – MSCI World Ex-Australia Index (Unhedged), Property – Mercer Unlisted Property Trust Index, Fixed income – Bloomberg AusBond Composite Bond Index, Cash – Bloomberg AusBond Bank Bill Index.

These indices relate to investment markets and do not relate directly to Hostplus investment options.

Benchmark returns

Cumulative value of $1,000 invested over the past 25 years

Source: JANA Investment Advisors Pty Ltd

This is an example only and assumes $1,000 was invested on 1 July 1991 in each of the respective asset classes (using the relevant market indices – see 5.13 Benchmark returns over 25 years by Traditional asset class table  and all money earned has been reinvested. The valuations are nominal, don’t take into account CPI, tax payable, fees or costs and are for illustrative purposes only. Actual investment returns are not guaranteed, and can be higher or lower than set out in this example. Past performance is not a reliable indicator of future performance.


5.14 Is time on your side?

Just because investment values fall, this doesn’t necessarily mean that your investment will lose money. You don’t actually lose money until you sell an investment for less than you paid for it. So, if you do have a year or two when your investment value falls, remember that if the strategy you have selected is for the long-term, then history has shown that investment markets usually go on to recover.

You wouldn’t consider selling your house if market values fell for a year or two. In the same way your super is a long-term investment and you shouldn’t be overly concerned with short-term fluctuations.


5.15 Investment terms in plain English

Alternative Investments
Almost any non-traditional investment strategy could be classified as an alternative investment. For example, hedge funds or credit investments. 

Assets
In investment terms, assets are investments used to gain a return. Assets are generally described as growth or defensive. They are also divided into asset classes such as cash, fixed income, property, infrastructure, equity and other (alternatives) (see Basic asset classes make up your investment portfolio).

Asset allocation 
This means the spread of investments within an investment portfolio across various asset classes. As part of the strategy of the portfolio, the asset mix is periodically rebalanced in order to maintain a long term goal for asset allocation.

Benchmark
A standard against which the performance of a security, asset class or investment manager can be measured. For example, a share market index (which represents a broad mix of shares listed on a stock exchange) can be used as a benchmark for listed equity investments.

Credit
Credit covers a broad range of debt that is typically issued by non-government entities.  The corporate bond market is the largest sector within credit markets and consists of debt issued by corporations.  Other credit sectors include mortgage-backed and asset-backed securities.  Credit ratings are typically assigned to debt issues/securities and can either be investment grade or sub-investment grade rated.

Custodian

An independent organisation that safeguards the fund’s assets. There are comprehensive rules governing who can issue instructions to the custodian, in particular how money can be released to investment managers.

Developed markets/countries
A developed market is a country with a relatively high level of economic growth and security. 

Diversification
As the saying goes, it doesn’t pay to put all your eggs in one basket. The same is true for investing. The key to successfully managing risk is through diversification. Diversification means spreading your investments across a range of different types of investments so you have exposure to different asset classes. This could help offset poor performance that may occur in any individual asset class. For example, if one asset class is not performing well, another asset class may be experiencing better returns helping to offset the losses of the poorer performing asset class.

Emerging markets/countries
The financial markets of developing countries are known as ‘emerging markets/countries’. Emerging markets can be very volatile but have strong growth potential.

Hedge Fund
A fund that pools capital from a number of investors and invests in complex strategies in shares and other securities. It aims to achieve positive returns in both rising and falling markets, while using strategies to reduce the chance of loss. 

Inflation
Inflation is the increase in the general price level of goods and services in the economy. It is usually measured using the movements of the consumer price index (CPI).

Investment account
Hostplus maintain an investment account for the sole purpose of temporarily holding investment returns and paying investment related expenses until the net investment returns can be allocated to members’ accounts during the 31 December or 30 June statement periods. Hostplus does not use the investment account to smooth net investment returns from one year to another.

Portfolio
A portfolio is a spread of investments across the various sectors, managed as a whole to achieve a particular investment strategy.

Returns
Returns may include both the income received from the investment and/or an increase or decrease in the capital value of the investment.

SAA (Strategic Asset Allocation) Benchmark
SAA is a target mix of asset classes (such as equities, property, and cash) which is used to implement an investment strategy for a fund’s investment portfolio. It takes into account the portfolio’s investment return objective, risk tolerance and time horizon.

Volatility

The short-term fluctuations in share prices, exchange rates and interest rates that affect an investment. The higher the volatility, the less certain an investor is of the return within a set time frame and hence volatility is one measure of risk.


5.16 Net investment return

The net investment return is based on the actual investment performance data for the previous week ending Sunday, less investment-related fees, costs and taxes. However, for the last two weeks of June the net investment returns may not be finalised until 20 to 25 business days after 30 June. For the last two weeks of December, the net investment returns may not be finalised until 20 to 25 business days after 31 December.

The net investment returns can be positive or negative depending on investment performance. A negative earning rate can result in a decrease in your account balance.

Generally, updates of the net investment returns are published on our website on the fourth business day each week (commencing from Thursday 8 September 2016).

Please refer to ‘How returns are allocated to your account’ below for how and when returns are allocated to your account.


5.17 How returns are allocated to your account

Net investment returns are allocated to your account:

  • at 30 June and 31 December each year (a statement is available online in September and March respectively),    
  • when you switch between investment options, or
  • when you fully withdraw (exit) or fully transfer out of Hostplus

Net investment returns are calculated on the daily balance of your account and are compounded daily. This is important as it is likely that you will have different closing balances in your account throughout the year as a result of transactions in your account (contributions, taxation, insurance, administration fees and so on).


5.18 Returns allocated at 30 June and 31 December

Net investment returns are used to calculate the amount of returns to be allocated to your account as at 30 June and 31 December each year.


5.19 Returns allocated when you switch between investment options

All Hostplus investment periods begin on a Monday and end on a Sunday.

You can switch investment options for your existing account balance and/or your future cashflows. You can switch between investment options as often as once a week. Switches are free of charge. When you switch between investment options for your existing account balance, your request to switch is effective from the following Monday. Your switch request will receive the net investment return applicable for the end of the week in which your request was received.

When you switch investment options for your future cashflows the switch will be applied effective from the day after the investment change was made. Cashflows may include taxes, fees and costs incurred on your account.

Note: If your switch is made through your online account by 11.59pm (AEST) on a Sunday, it will generally be processed the following Thursday (commencing from Thursday 8 September 2016) and backdated to Monday for your current account balance.


5.20 Returns allocated when you exit from the Fund

If you exit the Fund, the latest available net investment returns are used to determine your account balance.


5.21 Calculating returns on partial withdrawals or partial transfers out of the Fund

When you are invested only in the Balanced option

The latest available net investment returns will be used to allocate returns for the amount of the partial withdrawal or partial transfer. However this rate may be adjusted (positively or negatively) with the actual net investment return for the applicable period when the first of any of the following events occur:

  • 30 June and 31 December each year (a statement is available online in September and March respectively),
  • when you switch between investment options, or
  • when you fully withdraw (exit) or fully transfer out of Hostplus.

When you have made an investment choice other than the Balanced option

Returns are not allocated to your account at the time of a partial withdrawal or partial transfer out of the Fund. The amount of the partial withdrawal or partial transfer is simply withdrawn from your account at the time. Returns will be allocated when the first of the following events occur:

  • 30 June and 31 December each year (a statement is available online in September and March respectively),
  • when you switch between investment options, or
  • when you fully withdraw (exit) or fully transfer out of Hostplus.

5.22 Adjustments made to your account

Hostplus generally announces its net investment returns on Thursday (commencing from Thursday 8 September 2016). When applying the net investment returns to your account, there may be adjustments made to your account balance to ensure the applicable amount of interest has been applied. The net investment returns can be positive or negative depending on the investment performance for the previous week. A negative return rate can result in a reduction in your account balance.


5.23 Expertly and professionally managed

With the exception of ChoicePlus, each investment option is designed with different investment objectives, strategies and risk profiles established by Hostplus in consultation with our asset consultant, JANA Investment Advisers Pty Ltd. Together, we closely monitor and regularly review the performance of each investment as well as individual managers. Investment portfolios that make up the respective investment options are managed by professional, reputable managers selected by the trustee in consultation (where appropriate) with the trustee’s professional advisers including JANA.

Hostplus investments are held by a custodian, Citigroup Pty Limited. Citigroup reports on the performance of the investment managers selected by Hostplus.


5.24 Change of investment managers including individual investment manager options

Hostplus is responsible for selecting investment managers, monitoring their progress and determining the overall investment profile. Sometimes, a decision may be made to remove an investment manager as a result of poor investment performance, change in key personnel, or a shift in a manager’s style or Hostplus investment strategies.

When an investment manager is removed, a manager with a similar or different investment style can replace it. Alternatively, the assets in which that manager was investing may also be allocated to one or more of our existing managers.

As part of Hostplus fiduciary duties, investment managers are constantly reviewed and monitored. There may be circumstances where Hostplus will decide to terminate an individual investment manager option at short notice or due to an unforeseen event. In these instances, Hostplus reserves the right to remove the individual investment manager option immediately and transfer the funds to the default Balanced investment option. Hostplus will notify affected members of the change after the event, but within 30 days of the change. See Our investments and investment managers for a list of current Hostplus investment managers. Please note that you can switch your investment choice at any time and at no cost.


5.25 Labour standards and environmental, social and ethical considerations when investing

The investment managers have their own policies on labour standards and environmental, social and ethical considerations, which may be taken into account when they make investment decisions. In turn Hostplus pays due consideration to the contents of these policies when selecting investment managers. As such, we take labour standards and environmental, social and ethical considerations into account when making investment decisions.

Labour standards (‘LS’) considerations, for this purpose, may include workplace health, safety and quality, child labour, slavery, human capital management, employee relations, diversity, access to medicine, as well as other matters.

Environmental, social and ethical (‘ESE’) considerations may include issues such as greenhouse gas emissions, climate change, renewable energy, depletion of energy resources, chemical pollution, waste management, depletion of fresh water, corruption, shareholder rights, business ethics, board diversity, Government relations, disclosure, distribution of fair trade products, health and access to medicine, as well as a range of other matters.

Hostplus, as a signatory to the Principles for Responsible Investment, engages with its fund managers to take labour standards as well as the environmental, social and ethical considerations into account in their investment analysis and decision-making processes. Hostplus is a member of the Australian Council of Superannuation Investors ('ACSI'), a body that seeks to raise the standards of governance in the companies in which superannuation funds invest.

Some activities in this area include:

  • LS and ESE matters are addressed in the fund’s investment policy statements.
  • a number of investment managers take LS and ESE considerations into account in their decision-making processes including stock selection.
  • the fund’s investment adviser integrate these factors in their research (to the degree they feel appropriate given the particular investment under consideration).
  • shareholder voting rights are exercised in relation to various matters, including LS and ESE issues, as well as corporate governance issues. The fund subscribes to ACSI’s voting alert service, which provides voting recommendations. Hostplus  reserves the right to vote in the best interests of the fund and its members and override ACSI recommendations from time to time. Hostplus may also take into account, where relevant, advice from fund managers in order to ascertain a voting position.

5.26 What is the relationship between Hostplus and the companies it invests through?

We have an arm's length commercial relationship with the companies we invest through. The trustee undertakes that it will not deal with any companies in which it has an interest more favourably than it would deal with any other independent service provider.


5.27 Our Balanced investment option net investment returns

The Balanced option, our default investment option, aims to achieve competitive, long-term net investment returns for members. 

The Balanced option has recorded top quartile, top ten investment returns over the past one, three, five, seven, and ten years as at 30 June 2016, according to the SuperRatings Fund Crediting Rate Survey (20 July 2016).

Period to 30 June 2016 Net investment returns p.a.
1 year 5.0%
3 year 9.8%
5 year 9.2%
7 year 9.2%
10 year 6.1%

Past performance is not a reliable indicator of future performance. Net investment returns represent the rate of return on investments, net of investment-related fees, costs and taxes.

The 1, 3, 5, 7 and 10 year net investment returns are effective compound rates.

Visit hostplus.com.au for the latest net investment returns for Hostplus investment options. Members with ChoicePlus investments can check their performance from within their ChoicePlus account.



5.28 Hostplus investment options explained

Click here for a full explanation of our pre-mixed optionssector investment options and individual manager options showing their:

  • return target,
  • level of investment risk,
  • investment style,
  • asset mix, and
  • past performance.

Click here for information about the ChoicePlus investment option.


5.29 Investment objectives and strategies

Hostplus bases its objectives on professional advice from our independent asset consultant. The asset consultant takes into account the possible impact of economic forecasts on the different asset classes in which the options invest.

Investment strategies are developed by the Hostplus board in conjunction with the asset consultant to create a high probability of attaining the outlined objective of each investment option.

Strategies are amended from time to time to reflect changing circumstances in different markets.    

The investment objectives are not an indicator of the future performance of the options, and in no way predict returns. They are provided in order to give members an indication of the level of returns that the options could produce based on the historical, long-term experience of the different asset classes in which the options invest.

However, past performance is not a reliable indicator of future performance and investors should be aware that changing market conditions can cause the value of investments to change.


5.30 A closer look at our pre-mixed options

 

Balanced (default option)

Return target

• CPI plus 3.5% per annum on average over 10 years.
• CPI plus 4% per annum over 20 years.

Level of investment risk*

• Medium to High.

(Negative returns expected in between 3 and 4 out of every 20 years)

Investment style

• Investments through diversified investment portfolio, including some growth assets and some lower risk investments.

Who is this investment suitable for?

• This Option is diversified across a range of growth and defensive assets and aims to produce consistent returns over time.

• This Option may suit members who have a six year plus investment time horizon.

Suggested Minimum Investment Timeframe#

6 years +

 

Asset mix

 

Range

SAA Benchmark

Growth assets

76%

Equity

 

– Australian shares

15– 45%

27.5%

– International shares

 

        Developed Markets  10 - 30%  20.5%
        Emerging Markets  0 - 15%  7%

– Private equity

0 – 15%

5%

Infrastructure

0 – 15%

6%

Property

0 – 15%

4%

Other

 

 

 - Credit  0 - 10% 2%
 - Alternatives  0 - 10% 4%

Defensive assets

24%

Infrastructure

0 – 10%

4%

Property

0 – 20%

11%

Fixed income

0 – 20%

2%

Cash

0 – 10%

0%

Other

 

 

 - Credit  0 - 10%  6%
 - Alternatives  0 - 10%  1%

Past performance

Net investment return to 30 June p.a.

 

 2016 5.0%  
 2015 11.0%  
2014 13.6%  

2013

16.3%

 

2012

1.0%

 

Compound average to 30 June 2016 p.a.

 

3 year

9.8%

 

5 year

9.2%

 

10 year

6.1%

 

*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. 
#The Suggested Minimum Investment Timeframe is based on the risk and return profile of this option. The timeframe considers volatility and the likelihood of negative annual returns in any one year.
Past performance is not a reliable indicator of future performance. Net investment return represent the rate of return on investments, net of investment-related fees, costs and taxes.

Other pre-mixed options

 

Capital Stable

Return target

• CPI plus 3% per annum over 20 years.

Level of investment risk*

• Low to Medium.
(Negative returns expected in between 1 and 2 out of every 20 years)

Investment style

Most conservative and low-risk of the Hostplus pre-mixed investment options.

Who is this investment suitable for?

• This Option has a lower risk return profile than the Fund’s Default Option.

• This Option may suit members who have a four year plus investment time horizon.

Suggested Minimum Investment Timeframe#

4 years +

 

Asset mix

 

Range

SAA Benchmark

Growth assets

35%

Equity

– Australian shares

5 – 20%

10%

– International shares

 

 

        Developed Markets  5 - 15% 7.5% 
        Emerging Markets  0 - 5% 2.5% 

– Private equity

0 – 5%

0%

Infrastructure

0 – 10%

3%

Property

0 – 10%

4%

Other

 

 

 - Credit 0 - 5% 2% 
 - Alternatives  0 - 10% 6% 

Defensive assets

65%

Infrastructure

0 – 5%

2%

Property

0 – 15%

8%

Fixed income

10 – 50%

20%

Cash

10 – 40%

25%

Other

 

 

 - Credit 0 - 15% 8% 
 - Alternatives  0 - 5% 2% 

Past performance

Net investment return to 30 June p.a.

 

 2016 3.2%  
 2015  6.6%  
2014 7.9%  

2013

9.1%

 

2012

5.3%

 

Compound average to 30 June 2016 p.a.

 

3 year

5.9%

 

5 year

6.4%

 

10 year

5.7%

 

*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.
# The Suggested Minimum Investment Timeframe is based on the risk and return profile of this option. The timeframe considers volatility and the likelihood of negative annual returns in any one year.
Past performance is not a reliable indicator of future performance. Net investment returns represent the rate of return on investments, net of investment-related fees, costs and taxes.

 

Conservative Balanced

Return target

• CPI plus 3.5% per annum over 20 years.

Level of investment risk*

• Medium.
(Negative returns expected in between 2 and 3 out of every 20 years)

Investment style

Contains roughly equal proportions of growth and defensive assets.

Who is this investment suitable for?

• This Option is diversified across a range of growth and defensive assets, and has a lower risk return profile than the Fund’s Default Option.

• This Option may suit members who have a five year plus investment time horizon.

Suggested Minimum Investment Timeframe#

5 years +

Asset mix

 

Range

SAA Benchmark

Growth assets

53%

Equity

– Australian shares

10 – 30%

19%

– International shares

 

        Developed Markets 10 - 25%  14% 
        Emerging Markets 0 - 10%  5% 

– Private equity

0 – 10%

2%

Infrastructure

0 – 10%

3%

Property

0 – 10%

4%

Other

 

 

 - Credit 0 - 5%  2%
 - Alternatives 0 - 10% 4% 

Defensive assets

47%

Infrastructure

0 – 5%

2%

Property

0 – 15%

9%

Fixed income

10 – 40%

15%

Cash

5 – 25%

15%

 Other    
 - Credit  0 - 10% 4% 

- Alternatives

0 - 5%  

2%  

Past performance

Net investment return to 30 June p.a.

 

 2016  3.9%  
 2015  8.4%  
2014 10.4%  

2013

12.2%

 

2012

3.1%

 

Compound average to 30 June 2016 p.a.

 

3 year

7.5%

 

5 year

7.5%

 

10 year

 

*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.
#The Suggested Minimum Investment Timeframe is based on the risk and return profile of this option. The timeframe considers volatility and the likelihood of negative annual returns in any one year.
Past performance is not a reliable indicator of future performance. Net investment returns represent the rate of return on investments, net of investment-related fees, costs and taxes.

  Socially Responsible Investment (SRI) - Balanced
Return target CPI plus 3.5% per annum on average over 20 years.
Level of investment risk* High.
(Negative returns expected in between 4 and 5 out of every 20 years)
Investment style Responsible investment option that invests in companies that contribute to a socially and environmentally sustainable world by integrating environmental, social and ethical considerations, labour standards and corporate governance factors into the investment analysis.
Who is this investment suitable for?
  • This option encourages corporate practices that promote environmental stewardship, consumer protection, human rights, and diversity, and seeks to limit exposure to companies which have a material exposure to the most carbon intensive fossil fuels. 
  • This option may suit members who have a six year plus investment time horizon.
Suggested Minimum Investment Timeframe#
6 years +
  Asset mix
 

 
  Range SAA Benchmark
Growth assets 70% 
Equity    
- Australian shares 20-40% 28%
- International shares    
     Developed Markets 15-35% 27%
    Emerging Markets 0-7% 2% 
- Private equity 0–10% 0% 
Infrastructure 0 – 10%  3%
Property 0 – 20% 9%
Other    
- Credit 0-10% 0% 
- Alternatives 0-6%  1% 
Defensive assets 30%
Infrastructure 0 – 10% 0%
Property 0 – 10% 0%
Fixed income 0 – 30%  17%
Cash 0 – 15% 5% 
Other    
- Credit 0-15% 8%
- Alternatives    0-10% 0%
  Past performance
 



Net investment return to 30 June p.a.   
 2016 -  
2015 -  
2014 -  
2013  -
2012  
Compound average to 30 June 2016 p.a.  
3 year  -  
5 year -  
10 year -  

*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.
The Suggested Minimum Investment Timeframe is based on the risk and return profile of this option. The timeframe considers volatility and the likelihood of negative annual returns in any one year.
Past performance is not a reliable indicator of future performance. Net investment return represent the rate of return on investments, net of investment-related fees, costs and taxes.
The Socially Responsible Investment (SRI) – Balanced investment option was introduced on 28 March 2017.

 

Indexed Balanced

Return target

• CPI plus 4% per annum over 20 years.

Level of investment risk*

• High.
(Negative returns expected in between 4 and 5 out of every 20 years)

Investment style

Investments through diversified investment portfolio, including some growth assets and some lower risk investments.

Who is this investment suitable for?

• This Option is diversified across a range of growth and defensive assets and aims to produce consistent returns over time.

• This Option may suit members who have a six year plus investment time horizon.

Suggested Minimum Investment Timeframe#

6 years +

Asset mix

 

Range

SAA Benchmark

Growth assets

75%

Equity

– Australian shares

25 – 55%

37.5%

– International shares

 

 

        Developed Markets 25 - 55%  37.5% 
        Emerging Markets 0 - 10% 0% 

Defensive assets

25%

Fixed income

10 – 30%

15%

Cash

0 - 20%

10%

Past performance

Net investment return to 30 June p.a.

 

 2016  2.2%  
 2015  10.8%  
2014 14.4%  

2013

18.7%

 

2012

0.4%

 

Compound average to 30 June 2016 p.a.

 

3 year

9.0%

 

5 year

9.1%

 

10 year

 

*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.
#The Suggested Minimum Investment Timeframe is based on the risk and return profile of this option. The timeframe considers volatility and the likelihood of negative annual returns in any one year.
Past performance is not a reliable indicator of future performance. Net investment returns represent the rate of return on investments, net of investment-related fees, costs and taxes.

Shares Plus

Return target

• CPI plus 4.5% per annum over 20 years.

Level of investment risk*

• High.
(Negative returns expected in between 4 and 5 out of every 20 years)

Investment style

• Pre-mixed option.

• Contains the highest investment in assets with potential for capital growth.

Who is this investment suitable for?

• This Option is less diversified than the Fund’s Default Option and has a higher risk and return profile.

• This Option may suit members who have a six year plus investment time horizon.

Suggested Minimum Investment Timeframe#

6 years +

 

Asset mix

 

Range

SAA Benchmark

Growth assets

88%

Equity

– Australian shares

30 – 50%

36%

– International shares

 

 

        Developed Markets 20 - 40%  27% 
        Emerging Markets 0 - 15% 9% 

– Private equity

0 – 15%

6%

Infrastructure

0 – 10%

3%

Property

0 – 10%

2%

Other

 

 

 - Credit 0 - 5%  3% 
 - Alternatives 0 - 5%  2% 

Defensive assets

12%

Infrastructure

0 – 5%

3%

Property

0 – 10%

6%

Fixed income

0 – 10%

0%

Cash

0 – 10%

0%

 Other    
 - Credit 0 - 5%  3% 
- Alternatives 0 - 5%

0% 

Past performance

Net investment return to 30 June p.a.

 

 2016  3.9%  
 2015 10.8%  
2014 14.8%  

2013

17.9%

 

2012

-1.1%

 

Compound average to 30 June 2016 p.a.

 

3 year

9.7%

 

5 year

9.0%

 

10 year

6.2%

 

*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.
#The Suggested Minimum Investment Timeframe is based on the risk and return profile of this option. The timeframe considers volatility and the likelihood of negative annual returns in any one year.
Past performance is not a reliable indicator of future performance. Net investment returns represent the rate of return on investments, net of investment-related fees, costs and taxes.

 

HOSTPLUS Life**

Return target

Age Bracket

Investment Option

Objective

Under 40

Shares Plus

CPI plus 4.5% per annum on average over 20 years.

40-49

Balanced

CPI plus 4% per annum on average over 20 years.

50-59

Conservative Balanced

CPI plus 3.5% per annum on average over 20 years.

60 and over

Capital Stable

CPI plus 3% per annum on average over 20 years.

Level of investment risk*

Age Bracket

Investment Option

Level of Risk

Negative returns expected out of every 20 years

Under 40

Shares Plus

 High.

Negative returns expected in between 4 and 5 out of every 20 years.

40-49

Balanced

 Medium to High.

Negative returns expected in between 3 and 4 out of every 20 years.

50-59

Conservative Balanced

 Medium.

Negative returns expected in between 2 and 3 out of every 20 years.

60 and over

Capital Stable

 Low to Medium.

Negative returns expected in between 1 and 2 out of every 20 years.

Investment style

Throughout your younger years, investment is focused on long term capital growth, with a higher investment in shares and property. As you move closer to retirement, your superannuation will be invested in increasingly more defensive assets, with less exposure to risk, and more focus on providing a steady income and preserving capital. 

Who is this investment suitable for?

  • This option is suitable for members who prefer to have the investment decisions made on their behalf.
  • This option may suit members with a ten year plus investment time horizon.

Recommended minimum investment timeframe#

Age Bracket

Investment Option

Minimum investment timeframe

Under 40

Shares Plus

6 years +

40-49

Balanced

6 years +

50-59

Conservative Balanced

5 years +

60 and over

Capital Stable

4 years +

Asset mix

  Investment Option  

Shares Plus

Balanced

Range

SAA Benchmark

Range

SAA Benchmark

Growth assets


 88%
 76%

Equity

   

– Australian shares

30 -50%

36%

15-45%

27.5%

– International shares

 

 

        Developed Markets 20 - 40% 27%  10 - 30% 20.5% 
        Emerging Markets 0 - 15%  9%  0 - 15%  7% 

– Private equity

0 – 15%

6%

0 –15%

5%

Infrastructure

0 – 10%

3%

0 –15%

6%

Property

0 – 10%

2%

0 –15%

4%

Other

 

 - Credit 0 - 5%  3% 

0 - 10%

2% 
 - Alternatives 0 - 5%  2%  0 - 10%  4% 

Defensive assets

 12% 24% 

Infrastructure

0 – 5%

3%

0 – 10%

4%

Property

0 –10%

6%

0 –20%

11%

Fixed income

0 –10%

0%

0 –20%

2%

Cash

0 –10%

0%

0 –10%

0%

Other

 

 - Credit 0 - 5%  3%  0 - 10%  6% 
 - Alternatives 0 - 5%   0%  0 - 10%  1%

Investment managers may invest a proportion of this option’s assets in cash for management purposes from time to time.

         
  Investment Option (continued)

Conservative Balanced

Capital Stable

 

Range

SAA Benchmark

Range

SAA Benchmark

Growth assets

53%  35% 

Equity

   

– Australian shares

10–30%

19%

5-20%

10%

– International shares

        Developed Markets 10-25% 14% 5-15% 7.5%
        Emerging Markets 0-10% 5% 0-5% 2.5%

– Private equity

0 – 10%

2%

0-5%

0%

Infrastructure

0 – 10%

3%

0-10%

3%

Property

0 – 10%

4%

0-10%

4%

Other

 - Credit 0-5%  2% 0-5% 2%
- Alternatives 0-10%  4% 0-10% 6%

Defensive assets

47%  65%

Infrastructure

0 – 5%

2%

0-5%

2%

Property

0 – 15%

9%

0-15%

8%

Fixed income

10-40%

15%

10-50%

20%

Cash

5 – 25%

15%

10-40%

25%

Other

 - Credit 0-10% 4% 0-15% 8%
- Alternatives 0-5% 2% 0-5% 2%
Investment managers may invest a proportion of this option’s assets in cash for management purposes from time to time.

Past Performance

Net investment return to 30 June p.a.

 

Shares Plus

Balanced

Conservative Balanced

Capital Stable

 2016 3.9% 5.0% 3.9% 3.2%
 2015 10.8% 11.0% 8.4% 6.6%

2014

14.8%

13.6%

10.4%

7.9%

2013

17.9%

16.3%

12.2%

9.1%

2012

-1.1%

1.0%

3.1%

5.3%

Compound average to 30 June 2016 p.a.

3 year

9.7%

9.8%

7.5%

5.9%

5 year

9.0%

9.2%

7.5%

6.4%

10 year

6.2%

6.1%

-

5.7%

** Whilst this option was introduced on 25 May 2015, the net investment returns are the actual net returns of the underlying investment options forming Hostplus Life.
*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.
#The Suggested Minimum Investment Timeframe is based on the risk and return profile of this option. The timeframe considers volatility and the likelihood of negative annual returns in any one year.
Past performance is not a reliable indicator of future performance. Net investment returns represent the rate of return on investments, net of investment-related fees, costs and taxes.





5.31 A closer look at our sector investment options

 

Cash

Return target

• CPI plus 1% per annum over 20 years.

Level of investment risk*

• Very Low.
(Negative returns expected in between 0 and 0.5 out of every 20 years)

Investment style

Cash investments could include deposits in a bank, investments in short-term money markets and other similar investments.

Who is this investment suitable for?

• This Option may suit members who have a short term investment horizon.

• It will provide security of capital but returns will typically be lower than that produced by the Fund’s Default Option over the medium to long term.

Suggested Minimum Investment Timeframe#

Less than 1 year

Asset mix

 

Range

SAA Benchmark

Growth assets

0%

Defensive assets

100%

Cash

0 – 100%

100%

Past performance

Net investment return to 30 June p.a.

 

 2016 1.8%  
 2015 2.0%  
2014 2.3%  

2013

2.8%

 

2012

3.9%

 

Compound average to 30 June 2016 p.a.

 

3 year

2.1%

 

5 year

2.6%

 

10 year

3.9%

 

 

Diversified Fixed Interest

Return target

• CPI plus 1% per annum over 20 years.

Level of investment risk*

• Medium to High.
(Negative returns expected in between 3 and 4 out of every 20 years)

Investment style

Usually a loan to a Government or business with a fixed interest rate and the length of the loan agreed in advance.

Who is this investment suitable for?

• This Option may suit members who desire lower volatility over the medium term.

• Whilst returns can fluctuate, the risk and return profile is lower than the Fund’s Shares Options.

Suggested Minimum Investment Timeframe#

5 years +

Asset mix

 

Range

SAA Benchmark

Growth assets

0%

Other (Alternatives)

0% – 10%

0%

Defensive assets

100%

Fixed income

90 – 100%

100%

Investment managers may invest a proportion of this option’s assets in cash for management purposes from time to time.

Past performance

Net investment return to 30 June p.a.

 

 2016 6.8%  
 2015  5.9%  
2014 7.0%  

2013

7.3%

 

2012

10.8%

 

Compound average to 30 June 2016 p.a.

 

3 year

6.6%

 

5 year

7.6%

 

10 year

7.1%

 

 

Property

Return target

• CPI plus 3% per annum over 20 years.

Level of investment risk*

• Medium to High.
(Negative returns expected in between 3 and 4 out of every 20 years)

Investment style

An investment in property or buildings, either directly or via property trusts.

Who is this investment suitable for?

• This Option aims to achieve income returns and capital growth over the longer term.

• This Option may suit members who have a five year plus investment time horizon.

Suggested Minimum Investment Timeframe#

5 years +

Asset mix

 

Range

SAA Benchmark

Growth assets

40%

Property

0 – 100%

40%

Defensive assets

60%

Property

0 – 100%

60%

Investment managers may invest a proportion of this option’s assets in cash for management purposes from time to time.

Past performance

Net investment return to 30 June p.a.

 

 2016 10.2%  
 2015  11.9%  
2014 8.6%  

2013

5.3%

 

2012

3.6%

 

Compound average to 30 June 2016 p.a.

 

3 year

10.2%

 

5 year

7.9%

 

10 year

5.9%

 

 

Australian Shares

Return target

• CPI plus 5% per annum over 20 years.

Level of investment risk*

• High.
(Negative returns expected in between 5 and 6 out of every 20 years)

Investment style

Active management.

Who is this investment suitable for?

• This Option is less diversified than the Fund’s Default Option and has a higher risk and return profile.

• This Option may suit members who have a seven year plus investment time horizon.

Suggested Minimum Investment Timeframe#

7 years +

Asset mix

 

Range

SAA Benchmark

Growth assets

100%

Equity

– Australian shares

0 – 100%

100%

– International shares

0 – 10%

0%

Defensive assets

0%

Investment managers may invest a proportion of this option’s assets in cash for management purposes from time to time.

Past performance

Net investment return to 30 June p.a.

 

 2016 5.5%  
 2015 7.9%  
2014 17.6%  

2013

19.3%

 

2012

-4.5%

 

Compound average to 30 June 2016 p.a.

 

3 year

10.2%

 

5 year

8.8%

 

10 year

7.2%

 

 

International Shares

Return target

• CPI plus 5% per annum over 20 years.

Level of investment risk*

• High.
(Negative returns expected in between 5 and 6 out of every 20 years)

Investment style

Active management.

Who is this investment suitable for?

• This Option is less diversified than the Fund’s Default Option and has a higher risk and return profile.

• This Option may suit members who have a seven year plus investment time horizon.

Suggested Minimum Investment Timeframe#

7 years +

Asset mix

 

Range

SAA Benchmark

Growth assets

100%

Equity

– International shares

 

        Developed Markets  0-100% 75% 
        Emerging Markets 0-100%  25% 

Defensive assets

0%

Investment managers may invest a proportion of this option’s assets in cash for management purposes from time to time.

Past performance

Net investment return to 30 June p.a.

 

 2016 -2.2%  
 2015  12.1%  
2014 17.2%  

2013

24.0%

 

2012

-3.2%

 

Compound average to 30 June 2016 p.a.

 

3 year

8.7%

 

5 year

9.1%

 

10 year

4.5%

 

*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.
#The Suggested Minimum Investment Timeframe is based on the risk and return profile of this option. The timeframe considers volatility and the likelihood of negative annual returns in any one year.
Past performance is not a reliable indicator of future performance. Net investment returns represent the rate of return on investments, net of investment-related fees, costs and taxes.


5.32 A closer look at our individual manager options

 

Macquarie Investment Management – Australian Fixed Interest

Return target

• CPI plus 1% per annum over 20 years.

Level of investment risk*

• Medium to High.
(Negative returns expected in between 3 and 4 out of every 20 years)

Investment style

Passive management.

Who is this investment suitable for?

• This Option may suit members who desire lower return volatility over the medium term.

Suggested Minimum Investment Timeframe#

3 years +

Asset mix

 

Range

SAA Benchmark

Growth assets

0%

Defensive assets

100%

Fixed income

 

100%

Investment managers may invest a proportion of this option’s assets in cash for management purposes from time to time.

Past performance

Net investment return to 30 June p.a.

 

 2016 5.9%  
 2015 4.8%  
2014 5.3%  

2013

2.4%

 

2012

10.5%

 

Compound average to 30 June 2016 p.a.

 

3 year

5.3%

 

5 year

5.7%

 

   10 year  5.6%  

*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.
#The Suggested Minimum Investment Timeframe is based on the risk and return profile of this option. The timeframe considers volatility and the likelihood of negative annual returns in any one year.

Past performance is not a reliable indicator of future performance. Net investment returns represent the rate of return on investments, net of investment-related fees, costs and taxes.

 

BlackRock Asset Management – International Fixed Interest

Return target

• CPI plus 1% per annum over 20 years.

Level of investment risk*

• Medium to High.
(Negative returns expected in between 3 and 4 out of every 20 years)

Investment style

• Passive management.

• The manager invests in securities that form the

Barclays Global Aggregate Index, using an index tracking approach to manage securities.

Who is this investment suitable for?

• This Option may suit members who desire lower return volatility over the medium term.

Suggested Minimum Investment Timeframe#

3 years +

Asset mix

 

Range

SAA Benchmark

Growth assets

0%

Defensive assets

100%

Fixed income

 

100%

Investment managers may invest a proportion of this option’s assets in cash for management purposes from time to time.

Past performance^

Net investment return to 30 June p.a.

 

 2016 7.8%  
 2015 5.2%  
2014 6.4%  

2013

4.0%

 

2012

11.2%

 

Compound average to 30 June 2016 p.a.

 

3 year

6.5%

 

5 year

6.9%

 

   10 year -  

*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.
#The Suggested Minimum Investment Timeframe is based on the risk and return profile of this option. The timeframe considers volatility and the likelihood of negative annual returns in any one year.

^From the option’s inception on 1 June 2011 to 14 January 2014, this option was invested in the BlackRock Indexed World Government Bond Fund, which tracked the Citigroup World Government Bond Index (hedged in AUD with net dividends reinvested). From 15 January 2014, this option has been invested in the BlackRock Global Bond Index Fund, which tracks the Barclays Global Aggregate Index (hedged in AUD with net dividends reinvested).

Past performance is not a reliable indicator of future performance. Net investment returns represent the rate of return on investments, net of investment-related fees, costs and taxes.

 

Industry Super Property Trust Core Fund – Property

Return target

• CPI plus 3% per annum over 20 years.

Level of investment risk*

• Medium to High.
(Negative returns expected in between 3 and 4 out of every 20 years)

Investment style

The Fund has an income bias aiming to offer investors lower relative earnings volatility and a higher income yield.

Who is this investment suitable for?

• This Option aims to achieve income returns and capital growth over the longer term.

• This Option may suit members who have a five year plus investment time horizon.

Suggested Minimum Investment Timeframe#

5 years +

Asset mix

 

Range

SAA Benchmark

Growth assets

30%

Property

 

30%

Defensive assets

70%

Property

 

70%

Investment managers may invest a proportion of this option’s assets in cash for management purposes from time to time.

Past performance

Net investment return to 30 June p.a.

 

 2016 12.0%  
 2015  11.4%  
2014 8.4%  

2013

8.0%

 

2012

6.8%

 

2011

7.9%

 

Compound average to 30 June 2016 p.a.

 

3 year

10.6%

 

5 year

9.3%

 

 10 year  6.8%  

*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.
#The Suggested Minimum Investment Timeframe is based on the risk and return profile of this option. The timeframe considers volatility and the likelihood of negative annual returns in any one year.

Past performance is not a reliable indicator of future performance. Net investment returns represent the rate of return on investments, net of investment-related fees, costs and taxes.

Lend Lease managed Australian Prime Property Funds (Retail, Commercial & Industrial) – Property

Return target

• CPI plus 3% per annum over 20 years.

Level of investment risk*

• Medium to High.
(Negative returns expected in between 3 and 4 out of every 20 years)

Investment style

Long-term direct investment in a quality portfolio of major regional core retail assets, commercial assets and industrial assets across Australia.

Who is this investment suitable for?

• This Option aims to achieve income returns and capital growth over the longer term.

• This Option may suit members who have a five year plus investment time horizon.

Suggested Minimum Investment Timeframe#

5 years +

Asset mix

 

Range

SAA Benchmark

Growth assets

30%

Property

 

30%

Defensive assets

70%

Property

 

70%

Investment managers may invest a proportion of this option’s assets in cash for management purposes from time to time.

Past performance

Net investment return to 30 June p.a.

 

 2016 10.4%  
 2015  8.0%  
2014 7.5%  

2013

5.1%

 

2012

8.5%

 

Compound average to 30 June 2016 p.a.

 

3 year

8.6%

 

5 year

7.9%

 

 10 year 6.5%  

*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.
#The Suggested Minimum Investment Timeframe is based on the risk and return profile of this option. The timeframe considers volatility and the likelihood of negative annual returns in any one year.

Past performance is not a reliable indicator of future performance. Net investment returns represent the rate of return on investments, net of investment-related fees, costs and taxes.

IFM – Australian Infrastructure1

Return target

  •  CPI plus 3% per annum over 20 years.

Level of investment risk*

  • High.
    (Negative returns expected in between 4 and 5 out of every 20 years)

Investment style

Long-term direct investment option that invests in tangible infrastructure assets, such as airports, toll roads, power plants and utilities, across Australia.

Who is this investment suitable for?

  • This Option has a higher risk and return profile than the Fund’s Default Option and aims to achieve income returns and capital growth over the longer term.
  • This Option may suit members who have a five year plus investment time horizon.

Recommended minimum investment timeframe#

5 years +

Asset mix

Range

SAA Benchmark

Growth assets

50%

Infrastructure

50%

Defensive assets

50%

Infrastructure

50%

Investment managers may invest a proportion of this option’s assets in cash for management purposes from time to time.

Past performance

Net investment return to 30 June p.a.

 

 2016  21.0%  

2015

2.14%2

 

2014

-

 

2013

-

 

2012

-

 

2001

-

 

Compound average to 30 June 2016 p.a.

 

3 year

-

 

5 year

-

 

 10 year  -  

1. The option may be closed to new investors if a cap of 3% of total funds under management for the Fund is reached. 
2. This option was introduced on 25 May 2015, therefore this performance figure is for the period of five weeks to 30 June 2015.
*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. 
#The Suggested Minimum Investment Timeframe is based on the risk and return profile of this option. The timeframe considers volatility and the likelihood of negative annual returns in any one year.
Past performance is not a reliable indicator of future performance. Net investment returns represent the rate of return on investments, net of investment-related fees, costs and taxes.

 

Balanced Equity Management – Australian Shares

Return target

• CPI plus 5% per annum over 20 years.

Level of investment risk*

• High.
(Negative returns expected in between 5 and 6 out of every 20 years)

Investment style

Active management style based on fundamental analysis of stocks within the S&P/ASX100 Accumulation Index.

Who is this investment suitable for?

• This Option is less diversified than the Fund’s Default Option and has a higher risk and return profile.

• This Option may suit members who have a seven year plus investment time horizon.

Suggested Minimum Investment Timeframe#

7 years +

Asset mix

 

Range

SAA Benchmark

Growth assets

100%

Equity

– Australian shares

100%

Defensive assets

0%

Investment managers may invest a proportion of this option’s assets in cash for management purposes from time to time.

Past performance

Net investment return to 30 June p.a.

 

 2016 -6.3%  
 2015  6.6%  
2014 18.4%  

2013

26.1%

 

2012

-5.3%

 

Compound average to 30 June 2016 p.a.

 

3 year

5.8%

 

5 year

7.1%

 

 10 year 5.9%  

*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.
#The Suggested Minimum Investment Timeframe is based on the risk and return profile of this option. The timeframe considers volatility and the likelihood of negative annual returns in any one year.

Past performance is not a reliable indicator of future performance. Net investment returns represent the rate of return on investments, net of investment-related fees, costs and taxes.

 

IFM – Australian Shares

Return target

• CPI plus 5% per annum over 20 years.

Level of investment risk*

• High.
(Negative returns expected in between 5 and 6 out of every 20 years)

Investment style

Enhanced passive management.

Who is this investment suitable for?

• This option is less diversified than the Fund’s Default Option and has a higher risk and return profile.

• This Option may suit members who have a seven year plus investment time horizon.

Suggested Minimum Investment Timeframe#

7 years +

Asset mix

 

Range

SAA Benchmark

Growth assets

100%

Equity

– Australian shares

100%

Defensive assets

0%

Investment managers may invest a proportion of this option’s assets in cash for management purposes from time to time.

Past performance

Net investment return to 30 June p.a.

 

 2016 2.0%  
 2015 7.0%  
2014 17.0%  

2013

9.3%1

 

2012

 

Compound average to 30 June 2016 p.a.

 

3 year

8.5%

 

5 year

 

 10 year -  

1. This option was introduced on 1 November 2012, therefore this performance figure is for the period of eight months to 30 June 2013.

*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. 
#The Suggested Minimum Investment Timeframe is based on the risk and return profile of this option. The timeframe considers volatility and the likelihood of negative annual returns in any one year.

Past performance is not a reliable indicator of future performance. Net investment returns represent the rate of return on investments, net of investment-related fees, costs and taxes.

 

Paradice Investment Management (Small Cap) – Australian Shares

Return target

• CPI plus 5% per annum over 20 years.

Level of investment risk*

• High.
(Negative returns expected in between 5 and 6 out of every 20 years)

Investment style

Specialises in investing in companies outside the ASX top 100 stocks as defined by market capitalisation, as well as having the capacity to invest in New Zealand stocks.

Who is this investment suitable for?

• This Option is less diversified than the Fund’s Default Option and has a higher risk and return profile.

• This Option may suit members who have a seven year plus investment time horizon.

Suggested Minimum Investment Timeframe#

7 years +

Asset mix

 

Range

SAA Benchmark

Growth assets

100%

Equity

- Australian shares

100%

 - International shares 0 - 10%  0%

Defensive assets

0%

Investment managers may invest a proportion of this option’s assets in cash for management purposes from time to time.

Past performance

Net investment return to 30 June p.a.

 

 2016 30.4%  
 2015 9.4%  
2014 8.7%  

2013

7.3%

 

2012

1.3%

 

Compound average to 30 June 2016 p.a.

 

3 year

15.7%

 

5 year

11.0%

 

 10 year 8.3%  

*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. 
#The Suggested Minimum Investment Timeframe is based on the risk and return profile of this option. The timeframe considers volatility and the likelihood of negative annual returns in any one year.

Past performance is not a reliable indicator of future performance. Net investment returns represent the rate of return on investments, net of investment-related fees, costs and taxes.

 

Neuberger Berman – International Shares

Return target

• CPI plus 5% per annum over 20 years.

Level of investment risk*

• Very High.
(Negative returns expected in between 6 and 7 out of every 20 years)

Investment style

• Neuberger Berman seeks to maximise performance by constructing its portfolios with high quality, growing companies trading at attractive valuations, which have the potential to outperform the MSCI Emerging Markets Index at lower risk.

• The style can best be characterized by Growth at a Reasonable Price (GARP).

Who is this investment suitable for?

• This Option is less diversified than the Fund’s Default Option and has a higher risk and return profile.

• This Option may suit members who have a seven year plus investment time horizon.

Suggested Minimum Investment Timeframe#

7 years +

Asset mix

 

Range

SAA Benchmark

Growth assets

100%

Equity

– International shares

        Emerging Markets  100%

Defensive assets

0%

 

Investment managers may invest a proportion of this option’s assets in cash for management purposes from time to time.

Past performance

Net investment return to 30 June p.a.

 

 2016 -3.0%  
 2015 13.4%  
2014 9.5%  

2013

20.0%

 

2012

-1.6**

 

Compound average to 30 June 2016 p.a.

 

3 year

6.4%

 

5 year

-

 

 10 year -  

This option is unhedged and is fully exposed to currency fluctuations. 
**This option was introduced on 31 October 2011, therefore this performance figure is for the eight months to 30 June 2012.
*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. 
#The Suggested Minimum Investment Timeframe is based on the risk and return profile of this option. The timeframe considers volatility and the likelihood of negative annual returns in any one year.
Past performance is not a reliable indicator of future performance. Net investment returns represent the rate of return on investments, net of investment-related fees, costs and taxes.


5.33 A closer look at our Choiceplus option

The Choiceplus investment option offers you a greater level of control and choice in investing your super.

It provides you with access to real time trading, extensive market information, independent research through Thompson Reuters and investment tools to assist you in making an informed investment decision and manage your portfolio.

The Choiceplus investment option offers many of the features available to a self-managed super fund (SMSF) at a low cost - and you continue to be invested in an APRA regulated super fund with all the prudential protections that it provides – unlike an SMSF which does not provide the same protections.

It is important to bear in mind that investment decisions made in the Choiceplus investment option are made by you – not Hostplus. Like any investment, Choiceplus carries its own level of investment and market risk. You should be aware of the risks involved and are comfortable with the strategy you are putting in place. Hostplusexcludes all liability and retains rights to indemnity in connection with your ChoicePlus investment. You should read the Terms and conditions for investing in the Choiceplus investment option in the Choiceplus investment guide

The Choiceplus platform is accessed via your online  Member Online account.

Choiceplus allows you to invest directly in:

  • Australian Shares (S&P/ASX 300 Index),
  • Exchange Traded Funds (ETFs),
  • Listed Investment Companies (LICs), and
  • Term Deposits.

Australian Shares (S&P/ASX 300 Index)

The S&P/ASX 300 Index incorporates the largest 300 companies on the Australian Stock Exchange (by market capitalisation). Through the S&P/ASX 300 Index you can invest directly in well-known Australian companies and some less well known or niche companies over a range of industries.

Exchange Traded Funds (ETFs)

ETFs are traded like shares, but are a collection of securities and generally represent a particular market index, (e.g. ASX Small Caps). ETFs provide a low cost way to access a wide range of securities in Australian and international markets and different industry sectors without having to select shares yourself.

Listed Investment Companies (LICs)

LICs are listed managed investments, are traded like shares and are close-ended. This means they do not regularly issue new shares or cancel existing shares as investors join or leave. LICs enable investment into a collection of securities and provide a low cost way to access a diverse and professionally managed portfolio of assets, which can include shares, property and deposits.

Term Deposits

The Choiceplus option allows you to invest your superannuation in term deposits provided by ME (formerly Members Equity Bank). Hostplus is a shareholder in ME  which is owned by some of the largest industry super funds in Australia.

Money invested in this investment has a locked in term and interest rate, which accrues interest daily and is credited to your account at the end of the selected term along with the original invested capital. The interest rate is generally higher than a normal bank deposit interest rate.

Choiceplus provides you with agreed maturity terms of 90 days, 180 days and 365 days on your term deposits.

You can establish automatic investment instructions that apply when your term deposit matures, as well as receive pre-maturity alerts.

Term deposits are deemed to be ‘illiquid’ investments, because once you have agreed on a term and locked your investment in, you cannot redeem your cash earlier without incurring a penalty on your interest rate.

Term Deposits cannot be transferred into your Pension account from your super account.

Hostplus reserves the right to change or add to the selection of investments available through the Choiceplus investment option as required.

Choiceplus features:

  • easy to use online investment platform,
  • central transaction account,
  • access to Australian shares in the S&P/ASX 300 Index, selected ETFs and LICs and term deposits,
  • real time online share trading,
  • competitive administration and brokerage fees, [see section 6 for more on fees and costs]
  • transfer your Choiceplus shares, exchange traded funds (ETFs) and listed investment companies (LICs) when commencing a new Hostplus Pension (excluding TTR accounts)
  • latest information, share prices and stock market news as it becomes available including independent research,
  • live share quotes and 20 minute delayed market data,
  • ability to participate in share dividend reinvestment plans,
  • ability to check the value of your investments when it suits you,
  • access to personalised share trading information and history,
  • consolidated portfolio and tax reporting for your Choiceplus investments,
  • comprehensive company and market information,
  • access to end of day market wrap up, and
  • investment tools, including watch lists and charting.

Transfer your Choiceplus Shares, Exchange Traded Funds (ETFs) and Listed Investment Companies (LICs) when commencing your Hostplus Pension 

You can transfer your Choiceplus held shares, exchange traded funds (ETFs) and listed investment companies (LICs) from your super to your pension account (excluding TTR accounts) without the need to sell down. This transfer can only be achieved as a ‘once only’ when you commence a new Hostplus Pension, and does not include any Term Deposits you may hold. 

Transfers for members with Term Deposits are not permitted and will result in the rejection of your application. Transfers cannot be initiated until Term Deposits reach full maturity.

Please note: Choiceplus is not available through TTR accounts – but members may still invest in Choiceplus through their super account.

Benefits of a transfer are: 

  • you don’t have to sell and repurchase your super Choiceplus investments, thereby saving on buy and sell costs 
  • you will not have to pay any transfer or other transaction activity fees, meaning you enjoy a fee free transfer 
  • you are not exposed to out of the market risks because you remain invested throughout the transfer 
  • you may save on tax because the transfer occurs without the realization of capital gains and the assets are transferred into a tax- free environment

Additional matters you should consider: 

  • Term deposits cannot be broken in order to set-up your Pension account, meaning you may wish to consider delaying the commencement of your Hostplus Pension account until your Term Deposit(s) reach full maturity. 
  • Your super Choiceplus transaction account will be transferred to your new Pension account upon completion of the asset transfer. 
  • Hostplus has a half-yearly reporting cycle blackout period (each January and July/August) during which you may not be able to register for, or move assets or money in or out of your Choiceplus account. 
  • Your Choiceplus shares, ETFs and LICs cannot be transferred until any pending buy or sell orders have either been executed and settled or cancelled.
  • Corporate actions and other asset specific events, such as pending cash transfers, pending trades, and pending non-income corporate actions may delay transfers. 
  • Tax credits associated with any trust distributions you received during a financial year may be lost when you close and exit your Choiceplus super account (including as a result of an asset transfer) if done prior to the Fund’s annual true up calculation. 
  • The value of the transfer will be calculated at close of business the day before the transfer is completed. 

For full information on tax and your investments in Choiceplus (including details on the ‘annual true up’ please refer to the Choiceplus guide available at hostplus.com.au.

Transfers from Pension to super or Pension to Pension are at the absolute discretion of the Trustee. Consideration will be given on application. The Trustee may also, from time to time, vary the available Choiceplus investment options available for transfer.

To elect to transfer your Choiceplus investments simply tick the Transfer my Choiceplus shares, ETFs and LICs into my Hostplus Pension box in the Pension membership application form.

Seek advice from a financial planner

While many people feel they have the ability to take a more active role in managing their super, the reality is often quite different. We strongly recommend that you obtain advice from a licensed financial planner before investing in the Choiceplus investment option.

Our Hostplus financial planners  licensed by Industry Fund Services Ltd, ABN 54 007 016 195, AFSL 232514 can work with you to determine if a Choiceplus investment strategy is right for you. Visit hostplus.com.au/advice to make an appointment online or contact us on 1300 246 423 to have one of our Member Services Consultants organise an appointment for you.

Find out more about Industry Fund Services Ltd at hostplus.com.au/advice

For more information about Choiceplus download the Choiceplus Guide.

For information about the fees and costs applicable to the Choiceplus investments go to 6.4 Fees and costs for the Choiceplus investment option.

5.33.1 Who can invest in Choiceplus?

To be eligible to invest in the Choiceplus investment option, you must:

  • Be a Hostplus member with more than $10,000 in your account.
  • Have access to the internet and a current email address.
  • Read and accept the terms and conditions during the registration process.
  • Maintain a balance of at least $2,000 in one or more of your Hostplus premixed, sector or individual investment options.
  • Transfer and maintain at least $200 into your Choiceplus transaction account from your other Hostplus investment options.
  • Make an initial Choiceplus investment of $200 minimum.

For more information about Choiceplus download the Choiceplus Guide.


5.34 Our investments and investment managers at 30 June 2017

Equity

Australian shares

Airlie Funds Management Pty Ltd (Active Australian Equity)
Airlie Funds Managment Pty Ltd (Industrial Australian Equity)
Allan Gray Australia Pty Ltd
Balanced Equity Management Pty Limited*
BT Wholesale Australian Long/Short Fund 
– BT Investment Management Limited
Greencape Capital Pty Ltd
IFM Investors Pty Ltd (Enhanced Indexed)*
IFM Investors Pty Ltd (Small Cap)
L1 Capital Pty Ltd
Macquarie Investment Management Global Limited
Paradice Investment Management Pty Ltd (Small Cap)*
Paradice Investment Management Pty Ltd (Mid Cap)
Paradice Investment Management Pty Ltd (Large Cap)
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
BlackRock Fission Indexed International Equity Fund 
– BlackRock Asset Management Australia Limited
Cooper Investors Pty Limited
Hosking Partners LLP
Independent Franchise Partners, LLP
Investec Asset Management Australia Pty Limited
IronBridge Capital Management, LP
Martin Currie Investment Management 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)
Proa Partners Pte Ltd
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

Artesian Hostplus VC Fund 1, ILP
– 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
Carnegie Private Opportunities Fund No.1
– M.H. Carnegie & Co. Pty Limited
Carnegie Private Opportunities Fund No.2
– 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
Caspian Private Equity II, L.P
– Caspian Private Equity, LLC
Caspian Private Equity US Opportunities III, L.P
– Caspian Private Equity, LLC
Continuity Capital Partners Pty Limited
– Australia Private Equity Fund No.1
Continuity Capital Partners Pty Limited
– Australia Private Equity Fund No.2
Crown Europe Middle Market II Plc
– LGT Capital Partners (Ireland) Limited
Crown European Buyout Opportunities II Plc
– LGT Capital Partners (Ireland) Limited
Hostplus ROC Private Equity Trust
– Roc Capital Pty Limited
Industry Super Holdings Pty Ltd
IFM Private Equity Funds - Australian and International Private Equity Fund
– IFM Investors Pty Ltd
Lexington Capital Partners VIII, L.P
– Lexington Partners L.P
Lexington Co-investment Partners III, L.P
– Lexington Partners L.P
Members Equity Bank Pty Limited
MHC Hostpuls Co-Investment Trust
– M.H. Carnegie & Co. Pty Limited
MRCF 3 (HP) Trust
MRCF - Hostplus BTF
– BCP3 Pty Ltd
– Brandon Capital Partners 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
– Partners Group Management Ltd
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 Global 2015 Trust
– Square Peg Capital Pty Ltd
Square Peg Australia 2015 LP
- Square Peg Capital Pty Ltd
Wilshire Private Markets Group – US, European and Asian Private Equity 
– 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
QGIF Iona Aggregator Trust
– QIC Investments No. 1 Pty Ltd
QIC Global Infrastructure Fund No. 1 & 2
– QIC Limited
QIC REV Investment Trust No.1
– QIC Infrastructure Management No. 2 Pty Ltd
IFM Infrastructure Funds - Australian* and International Infrastructure
– IFM Investors Pty Ltd
Macquarie Global Infrastructure Fund III
– Macquarie Specialised Asset Management Limited 
NSW Ports Consortium
– Industry Funds Management Pty Ltd
Utilities Trust of Australia
– Hastings Funds Management 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
Industry Superannuation Property Trust (Core Fund)
– ISPT Pty Ltd*
ISPT Development and Opportunities Fund I & II
– ISPT Pty Ltd
ISPT Non-Discretionary Residential Mandate
– ISPT Pty Ltd
ISPT Retail Australian Property Trust
– ISPT Pty Ltd
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. 1, 2 & 3
– AMP Capital Investors Limited
Wholesale Property

Fixed income

BlackRock Global Bond Index Fund
– BlackRock Asset Management Australia Limited*
Macquarie True Index Australian Fixed Interest Fund
– Macquarie Investment Management Australia Limited*
Members Equity Bank Pty Limited
Specialised Credit Fund
– Industry Funds Management Pty Ltd
Super Loans Trust
– ME Portfolio Management Limited

Cash

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

Other (Alternatives) 

Apollo ST Fund Management LLC
Apollo Offshore Structured Credit Recovery Fund III Ltd
– Apollo ST Fund Management LLC
Loomis Sayles Credit Opportunities Fund
– Loomis, Sayles & Company LP
Barings LLC 
Bridgewater Pure Alpha Fund II, Ltd
– Bridgewater Associates, Inc
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 Speical Opportunities Fund II GP LP
Redding Ridge Holdings LP
Vinva Asia Pacific Equity Long-Short Fund
– Vinva Investment Management Limited

Currency 

Mesirow Financial Investment Management Inc.

* Managers available as individual manager investment options.

This document does not and is not intended to contain any recommendations, statements of opinion or advice. The information is factual and / or general in nature and does not consider any of your objectives, financial situation or needs. You should consider obtaining advice from a licensed financial and taxation adviser and consider the appropriateness of this information, having regard to your particular investment needs, objectives and financial situation.

Host-Plus Pty Limited ABN 79 008 634 704, AFSL No. 244392, RSEL No. L0000093, MySuper No. 68657495890198, Hostplus Superannuation Fund ABN 68 657 495 890, RSE No. R1000054.


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