Your investment return is how your money grows – your ‘profit’ over the years. Funds with a history of strong, long-term investment performance – after fees and taxes have been taken out – can result in more money in your account. Hostplus’ Balanced (MySuper) option, where most of our members are invested, is ranked the number one option over rolling 10 and 20-year periods.3
Hostplus
Media Team
7 min read
Updated 09 Apr 2024
Net benefit is the simplest, most powerful way to measure how much value your superannuation fund offers. It’s the investment return you receive on your savings after all fees and costs have been taken out.
Hostplus' Balanced option ranks number one for net benefit out of the 10 biggest not-for-profit funds.1
The two main factors that influence your account balance are the returns you earn on your investments, and the fees charged to your account. So funds that charge low fees and have a history of delivering strong investment returns offer the highest net benefit.
How can investment returns impact your savings?
What kind of fees and costs can affect your super balance?
There are two main types of fees your super fund might charge:
- Administration fees
These are what super funds charge for managing your account. At Hostplus, members pay a low administration fee – one of the lowest of any MySuper product in Australia.4
- Investment fees
These are how much you pay to have your money invested. At Hostplus, your investment fees will vary, depending on the investment option you’ve chosen. It’s important to remember that the lowest investment fee doesn’t always mean it's the best option for you. Some investment options might have higher fees but may have delivered high investment returns for members, even after the fees have been paid. More details about Hostplus’ investment options and fees are available in our Fees and costs page and PDS.
Your overall net benefit
In combination, fees and investment returns make a big difference to your retirement savings. A fund that charges low fees may not necessarily deliver high returns on your investments. On the other hand, a fund with high investment returns might not offer low fees. So it’s important to do your research, and to find a fund that delivers on the whole package, not just fees or investment returns.
How does Hostplus compare?
Rather than having to do all this research yourself, third-party ratings agencies such as SuperRatings assess this information for us.
SuperRatings awarded Hostplus its Net Benefit Award for 2023, in recognition of the true benefit that we deliver to our members.
Net benefit outcomes for Hostplus members
Based on a starting income of $50,000 and a starting super balance of $50,000, a Hostplus member in our default Balanced (MySuper) option is $19,447 better off than the average not-for-profit super fund member over the past 15 years. And, is $23,674 better off when looking at the average of all other balanced options over the same period.2
15-year net benefit for members of the 10 biggest not-for-profit funds
Over the same time period, Hostplus' Balanced option ranks number one for net benefit out of the 10 biggest not-for-profit funds.1
We combine low administration fees, competitive investment costs and impressive long-term performance.5 That's a plus.
Ultimately, it’s the combination of these three elements – the net benefit - that has the greatest impact on your super balance. That’s why it’s so important to consider the fees, costs and performance when comparing super funds. At Hostplus, we work hard to maximise the net benefit for members, so you can enjoy your best possible retirement.
The information in this article is correct as at time of publication.
1. Source: SuperRatings Net Benefit modelling for 31 December 2023 according to data extracted on 7 February 2024. This data compares the 15-year net benefit of Hostplus Balanced (MySuper) option with the Balanced options of the 10 biggest not-for-profit funds in Australia (according to Hostplus research) by funds under management. It only includes funds that have data available for the whole period. It assumes employer contributions on a starting annual salary of $50,000 and a $50,000 starting balance and takes into account historical investment earnings (after administration and investment fees and taxes). Fees deducted from the Fund's administration reserve, contribution fees, additional adviser fees or any other fees charged are excluded from this model. Outcomes may vary between individual funds. Past performance is not a reliable indicator of future performance and should never be the sole factor considered when selecting a fund. Visit hostplus.com.au/assumptions for more details about modelling calculations and assumptions.
2. Source: SuperRatings Net Benefit modelling for 31 Decemer 2023 according to data extracted on 7 February 2024. This analysis compares the average differences in net benefit of Hostplus’ Balanced (MySuper) investment option and the main balanced options of other funds tracked by SuperRatings. It assumes employer contributions on a starting annual salary of $50,000 and a $50,000 starting balance and takes into account historical investment earnings (after administration and investment fees and taxes). Fees deducted from the Fund’s administration reserve, contribution fees, additional adviser fees or any other fees charged are excluded. from this model. Outcomes may vary between individual funds. Past performance is not a reliable indicator of future performance and should never be the sole factor considered when selecting a fund. Visit hostplus.com.au/assumptions for more details about modelling calculations and assumptions.
3. Source: SuperRatings Fund Crediting Rate Survey – SR50 Balanced (60-76) Index, February 2024. Past performance is not a reliable indicator of future performance and should never be the sole factor considered when selecting a superannuation fund.
4. Source: SuperRatings fee data for public offer MySuper products extracted from SMART platform on 7 February 2024. Comparison is based on the total administration fees and costs assuming a $50k account balance. Other fees and costs apply. Refer to the PDS for more information.
5. Past performance is not a reliable indicator of future performance, and should never be the sole factor considered when selecting a superannuation fund.