Hostplus has introduced three new sector specific investment options for members and self-managed superannuation fund investors.
The superannuation fund said the three new options would provide members and investors with more diversity and less asset and manager concentration risk.
The Diversified Fixed Interest – Indexed option would invest in Australian and international government bonds and other investment grade debt.
“It’s designed for members looking to minimise fees. It uses an indexed-enhanced strategy based on an established market index and then seeks to add modest value by exploiting market inefficiencies. This option aims to provide capital stability and a return above cash over a market cycle,” Hostplus said.
The second option, the Australian Shares – Indexed option, would invest in companies listed on the Australian Securities Exchange (ASX).
“It’s designed for members looking to minimise fees. It uses an indexed-enhanced strategy based upon an established market index and then seeks to add modest value by exploiting market inefficiencies.”
This option would aim to achieve capital growth and income growth via dividends over the long term.
Finally, the International Shares – Emerging Markets option would invest in companies listed on international stock exchanges within emerging market countries.
The International Shares – Emerging Markets option would be actively managed and would aim to outperform the market by selecting which companies to buy and sell, achieving capital growth and income growth via dividends over the long term.
Hostplus was expected to merge with Statewide Super on 29 April, providing more investment options to Statewide members.
As the Australian financial landscape faces increasing scrutiny from regulators, superannuation fund leaders are doubling down on their support for private markets, arguing these investments are not just necessary but critical for long-term financial stability.
Australian Retirement Trust (ART) is leaning on its private asset allocation to help shield members from ongoing market volatility, as its chief economist stresses the importance of long-term thinking and diversification.
AustralianSuper is poised to cement its leadership in the superannuation landscape over the next five years, with fresh research forecasting a sharp shift in the sector’s power dynamics.
The Reserve Bank of Australia (RBA) has warned that significant liquidity pressures could arise in the superannuation sector if multiple risks materialise at once, potentially amplifying shocks in the financial system.