HostPlus Index - How Does It Work?

203132 on 15/11/2018 - 20:38

I have recently changed my Superannuation from AMP to Hostplus and I have done a comparison between "balanced", "high growth" and "index" investment options.

From a basic analysis, taking into consideration of the different types of fees involved between the options, the Index tickles my fancy.

My question is…

when I allocate my money into the option, will Hostplus use my money to buy shares at the current market prices?

or

am I buying into an allocated pool of money where Hostplus has been positioned since inception?

Is it different between Super funds?

Financial Superannuation

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Comments

  • CheapSticks on 15/11/2018 - 20:52
    +1

    technically current prices as the aus share portfolio will be updated everyday cob to reflect price at the close of the day

  • mrtin on 15/11/2018 - 21:10

    In a particular balanced index option it looks like hostplus will give some of your money away to someone to do what they like with it for a promised return.

    • 203132 on 16/11/2018 - 10:39

      That is correct.

      Just for Aussie Shares:

      Airlie Funds Management Pty Ltd (Active Australian Equity)
      Airlie Funds Management Pty Ltd (Industrial Australian Equity)
      Allan Gray Australia Pty Ltd
      Balanced Equity Management Pty Limited*
      Greencape Capital Pty Ltd (Australian Equities)
      Greencape Capital Pty Ltd (High Conviction)
      IFM Investors Pty Ltd (Buyback)
      IFM Investors Pty Ltd (Enhanced Indexed)*
      IFM Investors Pty Ltd (Small Cap)
      L1 Capital Pty Ltd
      Paradice Investment Management Pty Ltd (Small Cap)*
      Paradice Investment Management Pty Ltd (Mid Cap)
      Paradice Investment Management Pty Ltd (Large Cap)
      Pendal Group
      Vinva Australian Equity Alpha Extension Fund – Vinva Investment Management Limited
      Yarra Capital Management Limited (Australian Equities)
      Yarra Capital Management Limited (Emerging Leaders)

      • mrtin on 20/11/2018 - 09:08

        For the record, I dont believe that is accurate.

        This particular investment option has 4 different managers. As an example, international share unhedged is via IFM INvestors (owned by 28 not for profit funds) charged a fee of 0.00% to hostplus . Another example is Macquarie also charged 0.00%.

  • Diji1 on 15/11/2018 - 21:39
    -1

    The only superannuation arrangement that makes sense from the point of money is one where the investor owns the vehicle that is managing the fund. This means no incentive to levy fees at all and fees are what kills the magic of compounding interest.

    Are there any superannuation vehicles like this?

    It's simply astonishing to myself and others that the Government forces ten percent of any workers earnings to be invested into a system populated by predatory banks, institutions like HostPlus that claim superannuation without fees is impossible but they're doing their best to reduce them (LMAO … seriously, it says this in their PDS).

    Instead of legislating a system where no fees are levied. This financial structure already exists and has been viable for a long time but the government is more interested in robbing workers so bankers become wealthy.

    The average superannuation victim is charged a fee of 1% which results in north of $600,000 in losses compared to having no fees. Despite this the Government insists this is all being done for the workers good because they're funding their retirement.

    It's astonishing.

    • lolz112 on 16/11/2018 - 01:15

      So your proposal is? Let the layman "invest" their money so they will have a comfortable retirement? The super scheme was introduced because there was a massive problem with pensions where baby boomers were going into retirement and needing the pension because they did not plan for retirement. I studied finance (not in thay field atm) and reasonably more educated on the stock market than most people and am no where close to the returns of the top funds.

      Or would you prefer to have all the money in a bank earning 3% per annum. You go to a doctor if you have a health problem why would you not let professionals deal with your money?

    • [Deactivated] on 19/11/2018 - 16:16

      Sounds like a recipe for financial disaster

  • dcep on 16/11/2018 - 00:05
    +1

    it's always current market price

    so if you're switching large sums then better wait till shares market took a dip before moving in

    indexed balanced allocate 75% shares , remaining are bonds, FDs & cash ,

    so it's pretty large chunk on high growth/risk for mere 0.02% fee

    • mrtin on 19/11/2018 - 22:41

      I think they were forced to disclose a tad higher fee 0.06% after asic changed the rules.

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