Hostplus opens investments to cashed-up DIY super funds

Mod edit: moved to Super forum, and combined with another thread on the same topic

Smart move by HostPlus, very interesting.

Self Manage Invest

Hostplus account application

 

hmm, interesting indeed

 

Infrastructure and property options in particular could be attractive. At the coast having a break but it will interesting to look into. It certainly caught my eye and interest.

 

Hostplus SMSF Direct Brochure:

https://hostplus.com.au/-/media/Fil...210-Self-Managed-Invest-Document_LR.pdf?la=en

 

https://www.smh.com.au/money/super-...ashed-up-diy-super-funds-20190618-p51yur.html

In a first for a not-for-profit super fund, the 1.2 million member Hostplus industry fund has opened some of its investment options to self-managed super funds in a significant move to tap into one of the fastest-growing super segments.

Hostplus has opened its doors to six of its 23 investment options to DIY fund trustees in one of the most lucrative parts of the market, in a bid to entice them to invest some of their large cash piles with one of the best-performing industry funds.

 

I think SMSFs need more options like this. Why fight the system when we can have the best of both worlds.

EDIT: On second thought, I think I may have seen this before already.

 

Agree - Infrastructure and property would be of interest to me too. I would have to get over my dislike of union superfunds but I will not cut off my nose to spite my face. lol. I saw you were sending pics of sun and surf! lucky you - its pretty chilly here. Enjoy your break

 

Just need to add a low cost SMSF admin service (similar to BT) and it would be complete!

 

Some super fund active options are worth considering, potentially some of the best value for money active options available if you want active management, but I can’t see any advantage and some potential disadvantages in using this 'self-manage invest" rather than just rolling over some funds and becoming an actual direct member.

What am I missing?

 

Good point as usual @dunno. Being down the coast for a break (retirement is tough) I haven’t given’t it any thought or looked into it yet.

In particular I haven’t checked to see what if any additional Admin fees are involved if investing directly in the Host Plus Super Fund as opposed to individual investment options available to SMSFs.

In our case the SMSF has two pension accounts for me (taxed and other mix of tax / untaxed) and an accumulation account. My wife will have one pension account and an accumulation account. So five accounts but a “single” fee.

If the SMSF invested in HostPlus Infra Fund then it gets proportioned across all SMSF accounts. That may be a good or not so good thing depending on what one wants. If we wanted to achieve the same with rolling over some cash to HostPlus Super there would need to be five separate accounts with “separate” admin fees for each account.

However rolling over directly into HostPlus Super does add one benefit a SMSF alone (that has maxed out allowed caps) doesn’t have and that is the ability to “segregate” different asset classes!

The boss is wanting to head out again so back later to discuss further.

Any thoughts by others welcome.

 

You are right @dunno and you are not really missing anything except my irrational dislike of union run superfunds. We are similar to @Nodrog and have 3 pension and 2 accumulation accounts in our SMSF and as he said there would be a upside to one investment in hostplus spread evenly across our five accounts. We will probably not invest in this hostplus offering but I can understand why some might.

 

Fro a couple of recent articles

 

My only question is Why do it? However, I'm not smart enough to answer that so I'll Keep It Simple because Stupid fits me.

 

Yes, despite any initial interest in such things they generally fail the KISS test and hence no further action is taken.

 

The mind boggles:

Industry fund targets SMSFs with new investment offering - SMSF Adviser

 

And I look forward to the free lunch that accompanies this.

 

I've mentioned it before but when I read about issues of this nature I always have in the back of my mind an interview held with a couple of fund managers.

The aspect which my aged brain retains was the comment "SMSF's are rivers of gold." For who? Or is it for whom?

Could be worthwhile to try and work out how much the free lunch could cost you before salivating over getting access to some of these offers. Not saying it isn't a good option just it's sometimes good to take a deep breath, count to 10 (Million?) before hitting the BPay button.

Speak for yourself, not me, Mr Elia. I'll decide what are my risks and fears.

 

But someone has to support the poor Unions, not many in the workforce do so it’s left to Industry Super Funds to do this now.

Shame on you @SatayKing for not being more charitable to these institutions devoid of self interest with only their members best interest at heart.

 

LOL. I've nothing against industry funds or unions for that matter. Some do function for the benefit of their members and can stop unfair practices by employers. The really out there ones are the concern.

As for allowing access to SMSF money I do wonder why but then I am cynical to an extent. If I finally get tired of dealing with my SMSF there is no rational reason not to close it and get the funds into a low cost Industry Fund and be done with it rather than adopt a piece meal approach. a cleaner approach to my mind.