Industry superannuation fund for hospitality, tourism, recreation and sport, Hostplus announced a leading interim return of 12.5 per cent to its MySuper (Balanced) fund members, after investment fees and tax, for the 2017-18 financial year.

The median return in the SuperRatings’ top 50 funds was 9.2 per cent, with Hostplus being named as the number one performing MySuper (Balanced) fund in Australia over one, three, five, seven and 15 years (to 30 June 2018).

Hostplus CEO David Elia attributed two thirds of the fund’s consistent outperformance to its investment beliefs and long-term investment strategy, heavily invested in unlisted assets and active management.

“The past 12 months has seen another exceptional year of double-digit net returns. Our long-term investment in unlisted infrastructure and property continues to deliver strong, bedrock returns. While our proactive shift in the private equity asset class towards niche and bespoke investments is now also bearing fruit.

“Overlaying our long-term strategic asset allocation, active management continues to play a critical role in Hostplus outperforming the Australian equities market, delivering returns around three per cent above the share market benchmark,” Elia said.

SuperRatings CEO Kirby Rappell also acknowledged the fund’s consistent performance, saying: “Hostplus members had another exceptionally strong year of returns bolstered by favourable domestic and international equity market conditions. This was accompanied by stable, long-term earnings from unlisted assets including property and infrastructure.

“Hostplus is to be congratulated on their sustained outperformance and for delivering strong returns for their one million hospitality members.”

Hostplus continued to experience significant growth in membership, funds under management and a doubling of its contribution flows. Elia added that while top year-on-year returns are important, long-term performance is critical because this is when members receive the real benefits of compound interest.

“Regardless of members’ incomes, they can achieve significant wealth by consolidating into and remaining with one fund over the long-term,” he said.

Andy Young

Andy joined Intermedia as Editor of The Shout in 2015, writing news on a daily basis and also writing features for National Liquor News. Now Managing Editor of both The Shout and Bars and Clubs.

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