Hostplus has exceeded $100 billion in funds under management (FUM), underpinned by its numerous mergers and strong member growth.
According to David Elia, chief executive of the industry super fund, the new achievement represented the retirement savings of 1.7 million members, equating to 13 per cent of working Australians.
“As a truly national fund with an enviable investment track record over three, five, seven, 10, 15, and 20 years in our MySuper Balanced option, Hostplus is increasingly becoming the lifetime fund of choice for many Australians,” he added.
The recently published Super Insights 2023 report conducted by KPMG found that Hostplus’ net inflows increased by 7 per cent in 2022, despite the overall sector losing 0.5 per cent in FUM.
Elia recognised the fund’s successful mergers over three years as a key growth driver, which included its mergers with Club Super and Intrust. Its alliance with Statewide Super also broadened the representative industry base.
He continued: “We attribute this success to a combination of strong long-term investment returns driven by an active investment strategy, the loyalty and support of our long-term membership base, and the new members who, on a daily basis, choose us to manage their retirement futures.”
In December 2022, the fund progressed to the next stage of its merger with industry fund Maritime Super. The signed successor fund transfer (SFT) would allow Maritime to transfer its members and investments to Hostplus.
Looking to the future, the CEO said Hostplus’ focus would be on optimising investment performance, innovation, and cost efficiency to keep member administration fees low.
“We remain committed to continuing to deliver strong investment outcomes in our members’ best financial interest for the years ahead,” he said.
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
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