Hostplus
Hostplus is a profit-for-member Australian superannuation fund established in 1988, initially serving workers in the hospitality, tourism, recreation, and sports industries but now operating as a lifetime superannuation option open to all Australians.[1][2] With over 1.8 million members, more than 320,000 participating employers, and assets under management exceeding $130 billion as of 2025, the fund is governed by a board featuring equal representation from employer and employee organizations alongside independent directors, prioritizing member returns over profits for shareholders.[3][1] Hostplus has distinguished itself through consistent strong investment performance, delivering double-digit returns for its flagship Balanced and Indexed Balanced options in the 2024-2025 financial year, contributing to its recognition as an award-winning fund for value and MySuper products.[4][5] The fund maintains low administration fees and emphasizes long-term growth via diversified investments, including significant allocations to domestic venture capital and private equity, while sponsoring industry awards to support its foundational sectors.[1][6] Notable disputes have arisen, such as governance challenges with investment partners like Lendlease over property funds and public conflicts with startup executives regarding investment terms, alongside member complaints about claim handling processed through the Australian Financial Complaints Authority.[7][8] Despite these, Hostplus has grown into one of Australia's largest superannuation funds by membership and assets, reflecting its scale-driven efficiencies and focus on member-centric operations.[3][9]History
Founding and Early Development
Hostplus was established on 1 July 1988 as an industry superannuation fund by the Australian Hotels Association and the United Workers Union (formerly United Voice), targeting workers in the hospitality, tourism, recreation, and sport industries.[3][10] This founding aligned with the broader emergence of Australian industry super funds in the 1980s, which aimed to pool retirement savings for occupational groups amid limited private-sector pension coverage prior to the Superannuation Guarantee's introduction in 1992.[10] In its initial phase, Hostplus operated as a not-for-profit entity with a profit-to-member model, prioritizing low administration fees—initially around $1.50 per week—and investment options suited to the variable incomes of its core membership, such as hospitality employees facing seasonal employment.[10] The fund's governance reflected its dual stakeholder origins, with employer and union representatives shaping early decisions on benefit structures and insurance coverage tailored to industry risks like injury in service roles.[3] Early growth was steady, driven by compulsory superannuation contributions and member accumulation; by 1995, membership exceeded 250,000, reflecting uptake within its targeted sectors.[10] Funds under management surpassed $1 billion by 2000, supported by conservative asset allocation emphasizing Australian equities and fixed income to mitigate volatility for younger, lower-balance members.[10] A key structural development occurred in 2003 with the adoption of a 3x3x3 board composition, balancing three employer directors, three employee representatives, and three independents to enhance oversight amid expanding scale.[10]Expansion and Mergers
Hostplus has pursued growth primarily through mergers with smaller, industry-specific superannuation funds, enabling it to diversify beyond its original hospitality sector focus and scale operations nationally. These consolidations, often structured as successor fund transfers under Australian regulatory frameworks, have transferred member accounts, employer contributions, and assets seamlessly while maintaining member benefits and insurance coverage.[11] On 1 November 2019, Hostplus merged with Club Super, a fund primarily serving employees in sporting and leisure clubs, marking an early step in broadening its membership base.[2] This integration added specialized employer groups and aligned with Hostplus's strategy to incorporate complementary industry segments.[12] Subsequent mergers accelerated expansion. On 26 November 2021, Hostplus completed its merger with Intrust Super via a successor fund transfer, incorporating Intrust's members and contributing employers into Hostplus accounts effective from that date.[13] This was followed by the merger with Statewide Super on 29 April 2022, which combined Hostplus's approximately A$68 billion in assets with Statewide's A$12 billion, resulting in over A$80 billion in funds under management and more than 1.5 million members, propelling Hostplus into Australia's top five superannuation funds by size.[11][14] The most recent merger occurred on 1 September 2023 with Maritime Super, the largest superannuation fund dedicated to the maritime industry, transferring around 23,000 members and A$6 billion in assets to Hostplus.[15] This deal elevated Hostplus's total funds under management beyond A$100 billion, enhancing its scale for investment diversification and cost efficiencies while extending coverage to maritime workers.[15][12] These mergers reflect a broader trend in Australia's superannuation sector toward consolidation among industry funds to compete with retail and public sector offerings, though Hostplus has emphasized preservation of member-centric governance post-integration.[16]Recent Milestones
In September 2023, Hostplus completed its merger with Maritime Super, a $6 billion fund, forming one of Australia's largest superannuation entities with approximately $100 billion in funds under management (FUM).[15][12] This successor fund transfer, agreed in December 2022, enhanced Hostplus's scale and member services without disrupting existing benefits.[17] By the end of the 2024 financial year (June 30, 2024), Hostplus's FUM had grown to $114.8 billion, reflecting sustained membership expansion and strong net inflows amid competitive industry consolidation.[18] In December 2023, the fund received Money magazine's Best Super Fund 2024 award, alongside recognitions for its MySuper single strategy product and international shares pension option, based on criteria including long-term performance and fees.[19] Hostplus's Indexed Balanced option delivered a 12.18% return for the 2023-24 financial year, ranking as Australia's top-performing balanced option per SuperRatings data.[20] Over the decade to June 30, 2024, its Balanced option achieved an annualized return of 8.3%, leading the SuperRatings SR50 Balanced Index.[21] For the 2024-25 financial year, all Balanced and Growth options posted double-digit returns, with Balanced at 10.81%, Indexed Balanced at 12.02%, and the pension equivalent at 12.22%, announced in July 2025.[4][22] In 2025 awards, Hostplus's Indexed Balanced option earned Chant West's Best Balanced Super Product, while the fund secured a low-cost category win in SuperGuide's Super Funds of the Year, emphasizing net returns after fees.[5][23] These outcomes underscore Hostplus's focus on indexed strategies and cost efficiency amid broader superannuation reforms, including the July 1, 2025, increase in the superannuation guarantee to 12%.[24]Governance and Ownership
Board Composition and Union Influence
The Hostplus board consists of nine directors, comprising three employer representatives nominated by the Australian Hotels Association (AHA), three employee representatives nominated by the United Workers Union (UWU), and three independent directors including an independent chair.[25][26] This structure adheres to the governance requirements for Australian industry superannuation funds under the Superannuation Industry (Supervision) Act 1993, which mandates equal representation from employer and employee sponsors to balance stakeholder interests in fund management.[25] Employee directors, such as Bev Myers (Chair of the Operations Committee and appointed by UWU in her role), Tim Lyons, and Gary Bullock (Deputy Co-Chair), are selected by the UWU, reflecting the union's direct role in board nominations.[27][28][29] Employer directors, including those like Damien John Frawley, are nominated by the AHA, the industry's peak employer body.[26] Independent directors, such as Janet Whiting (head of disputes at Gilbert + Tobin) and David Gibson, are jointly selected to provide neutral oversight, with the board collectively responsible for strategic decisions, risk management, and compliance.[30] Union influence stems from UWU's status as a founding sponsor alongside the AHA in 1988, when Hostplus was established as an industry fund for hospitality, tourism, and related sectors.[3] Through its nomination rights, UWU ensures employee perspectives shape governance, including investment policies and member services, as seen in UWU officials serving on boards of multiple industry funds like Hostplus to advocate for worker-aligned priorities.[31] This arrangement has drawn scrutiny in broader debates on industry fund governance, where union-nominated directors are argued to potentially prioritize labor agendas over pure financial returns, though Hostplus's board operates under fiduciary duties to act in members' best interests per regulatory standards.[32] No specific breaches or conflicts unique to Hostplus's structure have been documented in official disclosures, with the board's balanced composition credited for maintaining operational integrity.[25]Leadership and Decision-Making
Hostplus is led by Chief Executive Officer David Elia, who assumed the role in 2019 and possesses over 25 years of experience in superannuation, finance, marketing, corporate governance, taxation, and risk management.[33] Elia reports to the Trustee Board of Directors and oversees the implementation of the fund's strategic plan, including operational management and member services.[33] Under his leadership, Hostplus has emphasized high-performance investment strategies, contributing to its recognition as one of Australia's top-performing superannuation funds by net returns.[34] The Trustee Board holds ultimate responsibility for the fund's governance and key decision-making, including approvals on investment policies, risk frameworks, and compliance with regulatory requirements.[26] Composed of directors such as David Attenborough, Janet Whiting, David Gibson, and Damien John Frawley, the board ensures fiduciary duties are met through quarterly meetings and oversight committees focused on audit, risk, and investments.[26] Strategic decisions, such as asset allocation changes or responses to market risks like climate change, are deliberated and ratified by the board to align with member interests and long-term objectives.[35] Day-to-day decision-making is delegated to the Executive Leadership Team, which executes board directives on operations, product development, and member engagement.[36] Key executives include Sam Sicilia (Group Chief Investment Officer), Natalie Strickland (Chief People Officer), Jason Muir (Chief Financial Officer), and others responsible for specialized areas like marketing and technology.[37] This structure promotes accountability, with performance metrics tied to remuneration policies that incentivize alignment with fund goals, though executive pay has drawn scrutiny amid industry-wide debates on compensation relative to returns.[38] Proxy voting and stewardship activities, integral to investment decisions, incorporate board-approved guidelines and external inputs for transparency.[39]Investment Philosophy
Core Strategies and Asset Allocation
Hostplus's core investment strategies emphasize long-term capital growth through diversified portfolios with a pronounced bias toward growth assets, tailored to the extended horizons of superannuation members. The fund prioritizes active management in illiquid, unlisted investments to exploit premiums unavailable in public markets, while maintaining rigorous diversification to mitigate volatility and market cycles. Approximately 40% of assets in the flagship Balanced (MySuper) option are allocated to unlisted categories such as property, infrastructure, private equity, and venture capital, enabling direct stakes in assets like ports and stations for enhanced returns net of fees.[40] This approach is supported by collaboration with external advisors and internal expertise to identify opportunities and adjust allocations dynamically.[40] Strategic asset allocation is determined through periodic reviews by investment committees, focusing on optimal risk-adjusted outcomes rather than short-term benchmarks. Growth assets, comprising equities, alternatives, and real assets, dominate to align with retirement objectives, while defensive holdings provide stability. Manager selection involves vetting external partners for alignment with fund goals, with ongoing performance monitoring to reallocate as needed.[35] The Balanced option, serving as the default for most members, targets medium-to-high risk profiles with a 76% growth and 24% defensive split, enabling exposure to global shares, Australian equities, and unlisted infrastructure.[41] Hostplus offers a spectrum of options with varying allocations to suit member preferences, from aggressive growth-focused to conservative profiles:| Investment Option | Growth Assets (%) | Defensive Assets (%) | Risk Level |
|---|---|---|---|
| Balanced (MySuper) | 76 | 24 | Medium to High |
| Conservative | 58 | 42 | Medium |
| Stable | 38 | 62 | Low to Medium |
Performance Metrics and Benchmarks
Hostplus's flagship Balanced (MySuper) investment option, which constitutes the majority of member balances and targets CPI + 4% per annum over rolling 20-year periods, delivered a net return of 10.81% for the financial year ended 30 June 2025.[43][44] Over the preceding decade to 30 June 2025, this option achieved an annualized net return of 8.3%, outperforming its long-term target and ranking first among balanced options in peer surveys.[45][21] The Indexed Balanced option, a lower-cost passive alternative with a target of CPI + 2.5% per annum over 20 years, returned 12.02% for the same financial year, reflecting its heavier weighting toward indexed equities amid market gains in shares.[43][46] Both options demonstrated positive returns across pre-mixed strategies for the period, with the Balanced option maintaining top-quartile positioning in longer-term metrics relative to comparable growth-oriented superannuation products (61-80% growth assets).[47] Performance is benchmarked against the SuperRatings SR50 Balanced (60-76% growth assets) Index, a median of Australia's largest funds by balance, where Hostplus Balanced has consistently ranked number one over rolling 10- and 20-year horizons as of 30 June 2025.[48] This index serves as a peer-relative measure rather than a market-index composite, though underlying asset classes align with custom blends including Australian and international equities, fixed income, and alternatives; Hostplus reports outperformance driven by active management in equities and direct property.[49] Independent assessments, such as those from the Australian Taxation Office's YourSuper comparison tool, affirm above-median net benefits for members in the Balanced option based on returns net of fees and insurance costs.[47]| Period (to 30 June 2025) | Balanced Net Return (p.a.) | Indexed Balanced Net Return (p.a.) | SR50 Balanced Median (p.a., approx.) |
|---|---|---|---|
| 1 Year | 10.81% | 12.02% | 11.8% (passive median) |
| 10 Years | 8.3% | N/A (shorter history) | Below Hostplus ranking |
ESG Policies and Related Debates
Hostplus integrates environmental, social, and governance (ESG) factors into its investment analysis and decision-making processes, as detailed in its Responsible Investment Policy, to identify and manage risks that could impact long-term member returns. The policy prioritizes financial materiality over exclusionary screening in core diversified options, retaining broad sector exposure—including energy and commodities—while encouraging active ownership through stewardship activities.[51][35][39] For members seeking alignment with specific ethical preferences, Hostplus offers Socially Responsible Investment (SRI) options, such as SRI-Balanced (with a 70-90% growth asset bias for medium- to long-term horizons) and SRI-High Growth. These apply negative screens excluding companies involved in controversial weapons (e.g., cluster munitions, anti-personnel mines), tobacco production, and those rated B or CCC by MSCI ESG metrics for deficient policies and systems. Positive tilts favor sectors like renewables, with underlying holdings screened for alignment.[52][53][54] Stewardship efforts include voting on all Australian and international equity proxies, company engagements, and public policy advocacy, often via the Australasian Centre for Corporate Responsibility (ACSI), a foundation member affiliation. Hostplus delegates some voting and engagement to specialists like Hermes EOS, disclosing outcomes in annual stewardship statements and PRI transparency reports; for instance, its 2024 PRI report affirms ESG's role in annual asset allocation and objective-setting.[35][55][39] Debates surrounding Hostplus's ESG approach center on the balance between risk management and divestment pressures, particularly in fossil fuels. In February 2020, Chief Investment Officer Sam Sicilia stated that thermal coal divestment "makes no sense," arguing it undermines diversification benefits and members' financial outcomes amid activist campaigns targeting super funds. This reflects Hostplus's policy of avoiding ideologically driven exclusions in flagship options, contrasting with SRI products, and prioritizing empirical return enhancement over broad sector bans.[56] Critics, including environmental activists, contend such positions enable ongoing emissions exposure, questioning ACSI-influenced engagements for insufficiently aggressive stances on climate resolutions. Proponents highlight Hostplus's performance—e.g., its Balanced option's historical outperformance—as validation that integrated ESG, without forced divestments, better serves fiduciary duties than exclusionary models potentially sacrificing returns. These tensions underscore broader scrutiny of industry funds' ESG implementation, where union-linked governance may amplify progressive advocacy, yet Hostplus maintains exposure to high-conviction assets like unlisted infrastructure for yield, amid claims of opacity in illiquid holdings.[56][57][58]Products and Operations
Membership Eligibility and Growth
Hostplus Superannuation and Personal Super Plan accepts members who are Australian residents for tax purposes, including employees of participating employers in eligible industries such as hospitality and tourism, as well as individuals opting in via the Personal Super product for self-employed persons or those choosing their own super fund.[59] Non-residents employed by eligible Australian employers may join, but those residing outside Australia without such employment are ineligible.[59] Originally focused on industry-specific sponsorship, the fund's expansion to a public offer model has broadened access, allowing most working Australians to participate without strict occupational restrictions.[60] Membership has expanded rapidly since the mid-2010s, driven by strong performance, mergers, and marketing to choice super consumers beyond traditional sectors. As of 30 June 2016, Hostplus had 985,000 members; this grew to 1.3 million by 30 June 2021, reflecting a compound annual growth rate exceeding 5% amid increasing assets under management.[61] By 30 June 2023, the base reached 1.7 million members with $100 billion in funds, supported by net inflows and retention from competitive returns.[62]| Year Ending | Membership (millions) | Funds Under Management (AUD billions) |
|---|---|---|
| 30 June 2016 | 0.985 | Not specified in report |
| 30 June 2021 | 1.3 | Not specified in report |
| 30 June 2023 | 1.7 | 100 |
| 30 June 2024 | 1.86 | 114.8 |
Superannuation Options and Fees
Hostplus provides superannuation accumulation accounts with multiple investment options designed to suit varying levels of risk and member preferences. The default Balanced option serves as the MySuper product for members who do not select otherwise, targeting long-term growth through a diversified portfolio with a medium-to-high risk profile and a suggested investment timeframe of 7-10 years or more.[42][54] Members may choose from diversified pre-mixed options, including Indexed Balanced for lower-cost passive exposure and Lifecycle, which dynamically shifts to more conservative allocations as the member approaches preservation age. Single-sector options offer targeted investments in assets such as Australian Shares (active or indexed variants), International Shares, Property, Diversified Fixed Interest, and Cash, each with distinct risk levels ranging from very low (Cash) to high (equity sectors) and timeframes from short-term to long-term. The Choiceplus direct investment platform further enables self-directed allocations to individual shares, exchange-traded funds, term deposits, and approved managed funds, subject to minimum balance requirements and additional transaction costs.[42][54] Administration fees apply uniformly across options at $1.50 per week ($78 annually), deducted monthly from the account balance on the last Friday of each month, with an additional portion funded from the fund's reserves (approximately $41.16 p.a. as of September 2025). Investment fees and indirect costs (including transaction costs like brokerage) are embedded in daily unit prices and vary significantly by option, reflecting active management intensity and asset class. Insurance premiums for default death and total and permanent disability cover are deducted separately based on age, occupation, and coverage levels, with members able to adjust or opt out to minimize expenses.[65][66] The following table summarizes estimated total fees and costs for select options, based on data effective 30 September 2025; these exclude insurance and are net of tax where applicable, with actual costs potentially varying due to market conditions or scale:| Investment Option | Investment Fees (% p.a.) | Transaction/Indirect Costs (% p.a.) | Estimated Total Fees & Costs (% p.a.) |
|---|---|---|---|
| Balanced (MySuper) | 0.99 | 0.08 | 1.15 |
| Indexed Balanced | 0.04 | 0.01 | 0.05 |
| Cash | 0.01 | 0.00 | 0.01 |
Pension and Additional Services
Hostplus offers an account-based pension product known as the Hostplus Pension account, which converts eligible superannuation balances into a stream of regular income upon retirement. To qualify, members must meet standard preservation age and condition of release criteria under Australian superannuation regulations, with a minimum initial transfer of $10,000 from an accumulation or transition-to-retirement account, capped by the transfer balance cap. Payments are flexible in amount and frequency, subject to annual minimum drawdown requirements set by the Australian Taxation Office, and investment earnings are tax-free for members aged 60 and over. The account supports a range of investment options, including pre-mixed and single-sector choices, as well as customized platforms like Choiceplus for direct access to shares, ETFs, listed investment companies, and term deposits.[67][68] A specialized feature within the pension offerings is CPIplus, a low-volatility investment option designed to deliver returns above inflation while minimizing short-term fluctuations for retirees seeking capital preservation. It targets CPI + 2.5% net of fees for the period from 1 July 2025 to 30 June 2026, with a very low expected frequency of negative returns (less than 0.5 times in any 20-year period). Historical performance to 30 June 2025 includes annual returns of 5.05% (2025), 6.16% (2024), 9.55% (2023), and 7.09% (2022), averaging 6.90% p.a. over three years; at least 1% of the pension balance must be allocated to any selected option, and withdrawals remain available at any time. Total investment fees and costs for CPIplus stand at 1.07%, alongside the standard administration fee.[69] Administration fees for pension accounts are structured as a flat $4.50 per week ($234 annually), independent of balance size, avoiding percentage-based charges that scale with assets; additional indirect costs and investment-specific fees apply, detailed in the product's disclosure statement. Beyond core pension functionality, Hostplus provides supplementary retirement services through a three-pillar strategy encompassing product innovation, member education, and personalized financial advice to optimize income, mitigate risks such as longevity and inflation, and integrate with government benefits like the Age Pension. This includes access to retirement planning consultations for financial situation reviews, online tools for payment customization and performance tracking, and resources to align pension streams with Age Pension eligibility tests based on assets and income. Members can apply online in approximately 20 minutes or via phone, with options for expert advice to support ongoing management.[65][70][67]Financial Performance
Historical Returns
Hostplus's Balanced (MySuper) investment option, serving as the default for most members, has recorded annualized returns of 8.79% from its inception in March 1988 through June 2022.[71] This long-term figure reflects compounded performance across market cycles, including periods of global financial stress such as the 2008 crisis and the early 2020s pandemic downturn. Updated metrics indicate sustained strength, with the option achieving 8.32% per annum over extended horizons to June 2025, outperforming median peers in balanced superannuation categories.[22] Recent annual returns for the Balanced option demonstrate variability tied to equity and fixed-income market conditions. For the financial year ended June 2024, it returned 7.60% net of fees and taxes.[20] The subsequent year to June 2025 rebounded to 10.81%, driven by recoveries in international equities and alternatives, contributing to double-digit gains across pre-mixed options.[43] Over the decade to June 2024, the annualized return stood at 8.3%, topping the SuperRatings SR50 Balanced Index benchmark.[21]| Period Ending June 2025 | Balanced (MySuper) Annualized Return (%) | Benchmark Comparison |
|---|---|---|
| 1 Year (FY25) | 10.81 | Positive vs. SR50 |
| 10 Years | ~8.3 (to June 2024) | #1 in SR50 Balanced |
| Since Inception (1988) | ~8.32 (long-term avg.) | Top-ranked rolling |
Comparative Analysis
Hostplus's flagship Balanced (MySuper) option has demonstrated superior long-term performance relative to the median for growth-oriented superannuation products (61-80% growth assets), achieving an annualized return of 8.3% over the 10 years to June 2025, compared to the category median of 7.2%.[21][45] In the financial year ended June 2025 (FY2025), it returned 10.81%, marginally exceeding the median growth fund return of 10.5%.[43][72] These outcomes reflect Hostplus's emphasis on low-cost indexed strategies alongside selective active allocations, contributing to its ranking as the top performer in SuperRatings' SR50 Balanced Index over the decade.[21] Relative to peer industry super funds, Hostplus has outperformed or matched leaders such as AustralianSuper and Cbus in balanced options. For instance, it led with 8.3% p.a. over 10 years, ahead of Cbus's 7.83% p.a. for its comparable option, while AustralianSuper trailed closely but did not surpass it in long-term balanced metrics.[73][74] A Monash University analysis of major funds' MySuper products found Hostplus generated a statistically significant 1.30% annualized excess return over its public market equivalent benchmark, outperforming seven of nine peers including AustralianSuper (1.26% excess) on risk-adjusted bases like Sharpe ratio (0.98 vs. benchmark 0.91).[75]| Fund/Option | 10-Year Annualized Return (to June 2025) | Source |
|---|---|---|
| Hostplus Balanced (MySuper) | 8.3% | [21] |
| AustralianSuper Balanced | ~8.2% (approximate, trailing Hostplus) | [73] |
| Cbus Growth | 7.83% | [74] |
| Median Growth (61-80%) | 7.2% | [45] |