One of Australia's best performing and multi-awarded industry superannuation funds has launched an innovative new product solution for self-managed superannuation funds (SMSFs), in a concerted effort to engage with SMSFs owners to both retain and grow its funds under management.
Hostplus' Chief Executive, David Elia, said today that Hostplus' Self-Managed Invest (SMI) options have been specifically designed to offer a simple and flexible investment solution for SMSF investors, seeking to invest alongside a major APRA-regulated fund to access distinctive assets ordinarily unavailable to retail investors.
"We are excited and pleased to formally announce and launch this innovative investment opportunity for SMSFs that we believe will allow them to benefit from a best of both worlds approach to investment for their retirement.
"Put simply, Hostplus' SMI options enables SMSFs investors to pool their funds with ours, as unitholders in some of our most popular and well-performed investment options, through our Pooled Superannuation Fund (PST) structure.
"We believe this is an Australian first and is an innovative and practical demonstration of how two of Australia's largest superannuation and pension sectors can work together for the mutual benefit of DIY investors and our fund members alike."
Mr Elia said that as well as now having the opportunity to access several of Hostplus' market-leading and otherwise hard-to-access fund managers and assets, SMSF investors would also benefit from reduced administrative, compliance and reporting responsibilities as well as accessing Hostplus' cost competitiveness, scale, expertise and the experience of Hostplus' world-class investment managers.
Hostplus is initially offering SMSF investors access to six of its 23 investment options; its flagship Balanced option, very low cost Indexed Balanced option, and its 'hero' unlisted options IFM – Australian Infrastructure, Industry Super Property Trust – Australian Property and its diversified Infrastructure and Property options.
Hostplus' Group Executive, Member Experience, Paul Watson advised that Hostplus had initially piloted the SMI solution last year and now has scores of SMSF investors investing some of their assets with Hostplus. "These early investors have been particularly complementary of our onboarding and initial investment registration solution, which is entirely digital and more frictionless than completing paper-based application forms and the like", Mr. Watson said.
In light of the recent and various reviews of the financial services sector and superannuation, and the focus on the asset concentration, investment performance and other risks often involved in managing a SMSF, we believe our SMI solution assists SMSF investors to manage some of those risks while seeking to improve their cost effectiveness and investment performance outcomes", Mr. Watson added.
ATO data has consistently shown that SMSFs on average underperform APRA-regulated funds – in particular, industry super funds.
Mr Elia advised that the launch of Hostplus' SMI options for SMSFs was just one practical demonstration of the way the fund was thinking and acting laterally and in the best interests of its members. "We will be bringing more innovative investment options and solutions to market soon, including a retirement option that will go a long way to reducing a number of key risks, including volatility of returns, that retirees often fear, without sacrificing flexibility or liquidity, or paying for costly guarantees", Mr Elia added.
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