HOSTPLUS today announced the launch of three new initiatives designed to deliver innovation and greater benefits for its members.
HOSTPLUS took the unprecedented step of freezing its membership fees for three years in 2008 at the height of the global financial crisis, to provide members with certainty during uncertain economic times. Members’ fees have in fact remained unchanged since 2004, and HOSTPLUS is today proud to announce that the moratorium on its member fees will be extended for another year and will continue until at least January 2012.
“Few funds could say they have not moved their fees since 2004. Others have even introduced asset based fees that mean members pay more for investing more. With HOSTPLUS you pay the same low fee to manage your account no matter what your balance. We believe that is a fair approach to charging fees,” said HOSTPLUS CEO, David Elia.
In December, HOSTPLUS will also launch a new investment option – an Indexed Balanced option – that will compete head to head with other retail products recently released on the market.
According to Elia, “The HOSTPLUS Indexed Balanced option will allow members to make a more direct comparison with other products currently being marketed as low cost. Our Indexed Balanced option will actually be low cost – in fact virtually no cost outside of our member fee – to give our members a more superior investment option.”
The HOSTPLUS Indexed Balanced option will feature a low investment management fee of 0.036% and a member fee of $1.50 per week, which is a total cost of $96 a year (for a $50,000 account balance).
“We think that compares well to the $400 or so others are promoting,” Elia said.
Capping off a big year for HOSTPLUS, the fund is also enhancing its insurance offering by improving cover options for members from 1 December 2010.
Elia said, “Research shows 95% of Australians don’t have enough insurance to protect themselves and their families, which is why we’ve made changes to our insurance offering, to make sure our members are better protected with improved cover.
Improvements to HOSTPLUS’ insurance offering includes adjustments to the benefit scales and premiums of Death and Total & Permanent Disability (TPD) insurance, where cover will increase by 51-73% depending on age, for an increase in weekly premium from $1 to $1.50. Members can also apply online for extra insurance of up to $3 million in TPD Cover and $5 million in Death Cover
HOSTPLUS is also providing new ways to keep members covered by allowing members to switch from fixed premium (unitised cover) to fixed cover at any time, if under 60 years of age. Members can also increase their cover at key milestones – like when there is an addition to the family or the purchase of a new home – without the need to complete health statements or lengthy applications.
These enhanced offerings highlight HOSTPLUS’ commitment to quality and innovation, and supports the Fund’s profits to members philosophy.