Hostplus Balanced (MySuper): Stability Meets Growth

Hostplus Balanced (MySuper) is the default option for Hostplus members who take no active investment choice. Combining growth and defensive assets in a 60/40 mix, it aims to deliver risk-adjusted returns suitable for a broad range of investors. This article explores the fund’s structure, performance history, cost profile, risk considerations, and target members.

The Balanced (MySuper) option allocates 60% to growth assets—primarily Australian and international equities, listed property, and infrastructure—and 40% to defensive assets, such as government and corporate bonds, plus cash. This balance allows the fund to benefit from equity-driven gains while cushioning volatility through its defensive sleeve. Hostplus periodically rebalances to maintain the target weights.

Over the past decade, Hostplus Balanced has achieved an average annual return of approximately 6.8%. The fund has performed in line with peers during bull markets and outperformed during mild downturns, thanks to dynamic asset allocation adjustments. Like other balanced options, it experienced drawdowns during market corrections but generally recovered within 12–18 months. Investors should examine rolling return periods (1, 3, 5, and 7 years) to fully appreciate its consistency.

Hostplus charges a net investment fee of around 0.84% p.a. for the Balanced (MySuper) option, one of the more competitive rates among large industry funds. This fee covers both administration and investment management. There are no extra transaction fees, but members may incur spread costs within the underlying assets. Lower-fee options exist, such as indexed products, but they may lack the active management advantages that help navigate market shifts.

With a moderate growth allocation, the fund targets volatility of about 8–10% per annum, with a negative-year probability near 25%. This means investors can expect occasional negative returns approximately once every four years. Hostplus employs risk-management techniques, including tactical tilts and vigilant monitoring of market conditions, to mitigate extreme swings.

As the default MySuper option, Balanced (MySuper) suits members who prefer a ‘set and forget’ approach and have a medium risk tolerance. It’s ideal for those in mid-career stages, balancing growth aspirations with capital preservation needs. Younger investors seeking higher growth might consider Hostplus’s High Growth option, while older members nearing retirement could opt for more conservative alternatives.

Hostplus members default into this option unless they choose another. To check or switch, log in to your Hostplus member portal, go to ‘Investment options’, and select ‘Balanced (MySuper)’. For non-Hostplus investors building a DIY equivalent, replicate the 60/40 split using index ETFs for equities and bond funds or cash equivalents for defense.

Hostplus Balanced (MySuper) offers a well-calibrated blend of growth and defensive assets at a competitive fee, making it a solid default choice for many super members. Its blend of stability and performance consistency has earned it a place among top MySuper options. As always, align your selection with personal risk tolerance, retirement timeline, and financial goals, and consider professional advice if needed.