Hostplus is an industry superfund that is open to all Australians. It has achieved consistently high returns over the past decade, with an average annual return of 8.77% across the past 10 years. While past performance isn’t an indicator of future performance, Hostplus also has a significant goal for the next decade, with a target return of CPI plus 3.0% per annum on average over 10 years, after fees, costs and taxes.
On its website, Hostplus claims that it has one of the lowest admin fees compared to other superannuation funds with a MySuper offering. However, of those that Forbes Advisor has compared, Hostplus has one of the highest administration fees.
Pros
- Open to all Australians
- Online financial services included in membership cost
- 9.57% average annual return over the past 10 years
Cons
- Eligibility requirements for death and TPD cover
- High admin fees
- Low customer reviews
Table of Contents
About Hostplus
Hostplus is a superannuation provider that was initially founded in 1988 by the Australian Hotels Association and the United Workers Union to serve the hospitality and tourism industries. Since then, Hostplus has opened up to become a lifetime fund for all Australians, growing to more than 1.7 million members and more than $102.6 billion in funds under management.
Hostplus’ balanced option, Hostplus Balanced, is the superfund’s default MySuper product. Hostplus is also recognised as an industry superfund in Australia, and has won many ‘Fund of the Year’ awards by recognised industry associations.
Despite its many awards, Hostplus has only received a ranking of 1.5 stars on Australia’s leading consumer opinion site, Product Review. However, since these rankings are an average of only 425 reviews in comparison to Hostplus’ 1.7 million members, the ranking must be considered warily.
Fees
The annual administration fee for members of Hostplus’ MySuper product is $614.16. This fee is based on a balance of $50,000; however, Hostplus doesn’t specify if this includes any further inclusions, such as transaction costs or activity fees.
Additionally, Hostplus states on its website that it has “one of the lowest admin fees out of any MySuper product”, yet its administration fee is much higher than other leading superfunds, such as Australian Super ($382).
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What’s included?
In its Hostplus Balanced superannuation service, Hostplus also provides its members with certain insurance and financial advisory offerings.
Insurance
Death and TPD cover is included depending on meeting certain conditions. If you’re 25 years or older and have at least $6,000 in your Hostplus account, Hostplus says you may be eligible for such insurance.
There is income protection available, which is capped at $50,000 per month; however, criteria also needs to be met.
Financial advice
Included in your Hostplus membership is the SuperAdviser Online Advice Tool, which is a self-service tool online that members can use to receive personal advice regarding investment options, insurance levels, additional contributions and more.
Basic financial advice over the phone is also available and included within the membership, while more comprehensive advice incurs an additional fee.
Hostplus Average Performance
Hostplus has had significant performance throughout the past decade, with an average annual return over the past 10 years sitting at 8.77%. In the past year, this performance was 7.84%.
Looking forward, Hostplus hopes to achieve an average return of CPI (inflation) plus 3.0% per annum over 10 years, after fees, costs and taxes. Over 20 years, it hopes to increase that to CPI plus 4.0%.
However, just as past performance is not an indicator of future performance, these figures are also predictions, and cannot be relied on for complete accuracy.
ESG Credentials
As more and more Australians grow conscious of where their investments are being placed, more superannuation funds have had to increase their transparency, and make socially responsible investment options available for their members.
At current, Hostplus has a Socially Responsible Investment Balanced option available, and the superfund has also committed to net zero carbon emissions from its investment portfolio by 2050, which includes tilt renewables and radical plastics.
Hostplus is also a signatory to the Principles for Responsible Investment (PRI), a United Nations-supported international network of financial institutions working to promote sustainable investment.
Customer service
Hostplus has better out-of-hours customer service availability than many other superannuation providers, with its livechat function and phone lines available for enquiries from 8am-8pm, Monday through Friday.
Unfortunately, there is no customer service available on the weekend; however, online enquiries are able to be submitted at any time.
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Frequently Asked Questions (FAQs)
What is the Hostplus fund name and address?
Hostplus’ fund name is Hostplus Super. Its address is Locked Bag 5046, Parramatta, NSW 2124.
Where is Hostplus located?
Hostplus is based in Parramatta, NSW. However, Hostplus has offices in varying locations across Australia.
Can anyone join Hostplus?
Yes, Hostplus is open to all Australians. Initially, the superfund was limited to the hospitality and tourism industries, but those conditions have now changed.
Is Hostplus better than AustralianSuper?
It is difficult to rank super funds as “better than” or “worse than” one another, as there are many factors Australian’s need to consider when they choose a super fund. Not only is performance important, but so are the annual fees you will be subject to and any insurance perks (or lack thereof).
When Forbes Advisor Australia compared the best MySuper products on the market in 2023, Australian Super was ranked higher than Hostplus.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
