Industry superfund, Hostplus, has achieved consistently high returns with its balanced super product with an average annual return of 8.77% across the past 10 years. While past performance isn’t an indicator of future performance, Hostplus has a significant goal for the next decade: 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 administration fees compared to other superannuation funds with a MySuper offering. While it’s $78 administration fee is low, its overall fee—which includes insurances and other investment charges—is around $600 per year.
Hostplus’ balanced option, Hostplus Balanced, is the superfund’s default MySuper product and the one we’ll be exploring in this review.
Pros
- Open to all Australians
- Online financial services included in membership cost
- High average annual return over the past 10 years
Cons
- High total fees
- Poor customer reviews
Table of Contents
About Hostplus
Hostplus was 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 1.8 million members and more than $115 billion in funds under management.
It is also recognised as a leading industry superfund in Australia, and has won many Fund of the Year awards by industry associations.
Despite the accolades, Hostplus has received a ranking of an average of 1.4 stars on Australia’s consumer opinion site, Product Review, with many citing poor customer service. However, since these rankings are an average of only 490+ reviews in comparison to Hostplus’ 1.8 million members, these negative assessments must be considered alongside other features of the fund.
Fees
The annual administration fee for members of Hostplus’ MySuper product is $606, as of June 30, 2024. This fee is based on a balance of $50,000 in accumulation phase, according to the ATO’s MySuper tool.
Additionally, Hostplus states on its website that it has “one of the lowest admin fees out of any MySuper product”, yet its total fees are higher than other leading industry superfunds, such as Australian Super at $383. Previously, Hostplus was well-known for levying a tiny management fee of .02%, but that amount has risen to 0.96% as of July 2024.
Featured Partners
What’s Included With Hostplus?
In its balanced superannuation option, Hostplus provides its members with insurance and financial advice offers.
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, 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 Returns
Hostplus has performed well over the past decade, with an average annual return at 8.18% over 10 years and a 20-year average return of 7.72%, as of June 30, 2024.
Longer-term returns are a more helpful metric than short-term performance. To get a sense how volatile short-term returns can be, consider the performance of Hostplus over the past five years, which mirrors the broader performance of funds over this period:
- 2019: 6.64%
- 2020 pandemic: -2.01%
- 2021: 21.16%
- 2022: 1.42%
- 2023: 7.84%
- 2024: 7.45%
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, keep in mind that these figures are targets rather than certainties.
ESG Credentials
As more and more Australians become conscious of where their money is invested, superannuation funds have increased their transparency and socially responsible investment options for their members.
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 live chat 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 email enquiries are able to be submitted at any time.
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 2024, Australian Super was ranked higher than Hostplus based on our preferred metrics.
The information provided by Forbes Advisor is general in nature and for educational purposes only. Any information provided does not consider the personal financial circumstances of readers, such as individual objectives, financial situation or needs. Forbes Advisor does not provide financial product advice and the information we provide is not intended to replace or be relied upon as independent financial advice. Your financial situation is unique and the products and services we review may not be right for your circumstances. Forbes Advisor encourages readers to seek independent expert advice from an authorised financial adviser in relation to their own financial circumstances and investments before making any financial decisions.
We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results. Forbes Advisor provides an information service. It is not a product issuer or provider. In giving you information about financial or credit products, Forbes Advisor is not making any suggestion or recommendation to you about a particular product. It is important to check any product information directly with the provider. Consider the Product Disclosure Statement (PDS), Target Market Determination (TMD) and other applicable product documentation before making a decision to purchase, acquire, invest in or apply for a financial or credit product. Contact the product issuer directly for a copy of the PDS, TMD and other documentation. 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. For more information, read our Advice Disclaimer here.
