Industry super fund Hostplus has launched a new investment product for SMSFs, allowing SMSF investors to access assets previously only available via the not-for-profit fund.
Hostplus chief executive David Elia said the product, Self-Managed Invest (SMI), which offers SMSF investors the opportunity to invest alongside the Australian Prudential Regulation Authority-regulated fund, would provide a “best-of-both-worlds approach” to investment for SMSFs.
“Put simply, Hostplus’ SMI option enables SMSF investors to pool their funds with ours, as unitholders in some of our most popular and well-performed investment options, through our Pooled Superannuation Fund structure,” Elia said.
“We believe this is an Australian first and is an innovative and practical demonstration of how two of Australia’s largest superannuation and pension sectors can work together for the mutual benefit of DIY investors and our fund members alike.”
Hostplus told selfmanagedsuper a pilot of the SMI solution last year had resulted in 50 SMSFs investing a total of $15.5 million with the fund.
Hostplus member experience group executive Paul Watson said: “In light of the recent and various reviews of the financial services sector and superannuation, and the focus on the asset concentration, investment performance and other risks often involved in managing a SMSF, we believe our SMI solution assists SMSF investors to manage some of those risks while seeking to improve their cost-effectiveness and investment performance outcomes.”
The new product will initially provide SMSF investors with access to six of Hostplus’s 23 investment options, specifically its balanced option, indexed balanced option, two unlisted options – Australian infrastructure and Industry Super Property Trust – Australian property, and two diversified options – infrastructure and property.