Changing Super- Australian vs Hostplus

Hi all,

First time poster here. Looking at rolling out super from AMP into either Australian Super or Hostplus Super, which one is better?

Reasons for rolling out is due to the recent bad news regarding AMP and also I was told I am better with an industry superfund, are these valid reasons?

Thanks in advance

 

You are reviewing your super, always a good first step. Many comparison websites out there. If you are a set and forget type person then pick something with low fees and good average performance. I was with AustralianSuper and quite happy with low fees, performance, no cost investment switching etc.

If you have your insurance through a superfund then consider that as well, you may be better off with a fully underwritten insurance. Talk to your planner.

Top Performing Super Funds On Canstar In 2019 | Canstar

 

Probably much of a muchness. Are you looking at their default scheme or something specific. What has your research found?

 

Well I am not very financial minded so just the default option. But Australian Super is putting up their admin fees so $35 more a year, but lower investment fees. so I think you are right, much of a muchness. Just want to see what the conscensus is in case there are things I have missed.

 

Both good funds I believe. Not sure ditching AMP super because of the company's perceived performance is logical. What are the fees for AMP? Performance? I don't have enough information on AMP super to judge.

 

Im currently in the exact same situation. Im with AMP's MyAMP (Custom Super) and looking to roll into Australian Super or Host Plus. One advantage for me is that my current employer's default is Australian Super - and the paperwork is pre-filled .

I haven't looked at the fees in detail, however from all counts they seem comparable?

With regards to the investment options, they both seem to offer flexibility with their investment direct options. Looks as though Host Plus offers LIC's as well. With that said, I'm personally looking at their pre-mixed options (e.g. balanced and/or equivalents).

I'd be interested to hear anyone else's view as well.

 

Never choose a fund based on a employer default. Thats just easy for them. Some employers earn benefits doing this even with industry funds !!! And employers arent equiped with the skills to even make a sound choice. . Imagine your CEO going to the football in a box or Hawaii because of that default choice..Or they pick the dud fund. Choice of fund is the employee prerogative in most cases (not all)

Superannuation shake-up: Employers should not be choosing default funds, says Productivity Commission - SmartCompany

Look at ChantWest and consider if you can get a free comparison report. If not pay for it and it will tell you more than you may imagine.

 

Bad news re AMP practice does not really make them a bad place to park super.

All banks and industry funds do dodgy things some just do it better.

Returns and service should be number 1 reason for switching products.

 

When was the last time a Retail super fund didn't have conflict of interest? and still performed great?

 

Doing the same - currently with AMP and considering other options, AustralianSuper being top of the list at the moment. No particular issue with AMP, just checking if the grass is greener elsewhere...

By the way, if you had for example 100% VAS in the member direct option, what would happen with the franking credits?

 

I just switched from Colonial First State to Australian Super myself. A lot of the larger Industry Funds seemed to have lower fees than Retail funds plus I was over the way Banks gave treated their customers

 

For what it’s worth ... and not advice.

I switched from AMP to Australian Member Direct. Probably 3 years ago.

Pretty happy. Can put 80% of my super into direct shares ... where I make the decisions with full transparency. No fund manager, performance fees, etc.

Every time a fully franked dividend gets paid I can see on my transaction history a tax credit. Long may that last.

A few frames to work within ... a max on any one equity (no issue really) & no LICs.

I keep it simple ... albeit it’s complicated.

I look at the largest holdings of the 3 biggest LICs (published monthly & weight) ... exclude mining (Thornhill ... but what a quarter to miss out on if you’ve watched the sector & FMG in particular) ... and roughly rebalance every now and then with dividends & any contributions.

 

I think the fees actually vary a bit between the options and funds depending on your actual balance, so when comparing fees take that into consideration. Also check the asset allocations are comparable because I am aware the Aust Super Balanced option has a much higher growth allocation than is typical for the classification.

 

Nice. What's the brokerage cost? Also just out of interest how many holdings do you maintain?

 

well if AMP is being investigated and apparently a lot of their investment managers have left, I guess fair to assume my money is not going to be looked after properly parking in their company?

 

I can’t quote the brokerage exactly off the top of my head, but recall it’s not unreasonable. I’d certainly remember if the rates were obscene.

My holdings work out to approx 20 by trying to mirror the weighted top holdings of the 3 biggest LICs.

Definitely overweight on banks ... but realistically I’m overweight everything by excluding mining a la Thornhill.

 

TRANSACTION AMOUNT
BROKERAGE FEE
$0 to $5,000 $15.00
$5,001 to $10,000 0.30%
$10,001 to $30,000 0.20%
$30,001 to $50,000 0.16%
$50,001 + 0.12%

So for two members in accumulation contributing 50k per year total between them and purchasing quarterly it would be $100 p/a which is fine.

Plus $395 P/a
Plus other non member direct fees

 

Just realised my post was rubbish. Was mentally comparing with a SMSF in my head. Too much Friday night cheer

 

Interesting to note that Australian Super are now giving away 20,000 Qantas points to people that open a super account with them. Definitely not a reason to move your super to a different provider, but it's a nice little bonus

 

I recently changed my Super from Colonial First State to Hostplus.

I have the following Asset allocation with Hostplus -

• 50% IFM Australian Shares (total cost 0.03%)
• 25% International Shares Indexed non-hedged (total cost ~0.10%)
• 25% International Shares Indexed Hedged (total cost ~0.15%)

I am in my mid-30s. Went with an aggressive portofolio allocation hoping that it will hold me in good stead for great cap growth in long term.

Keen to know your thoughts!