Hostplus, the A$68 billion ($50.6 billion) superannuation fund focused on Australia's hospitality sector, said its MySuper balanced default option posted a record 21.3% gain for the fiscal year ended June 30.
Assets under management for the Melbourne-based fund's pooled superannuation trust surged 38.6% for the year to A$68 billion, according to a news release Wednesday.
That gain — despite billions of dollars of early withdrawals allowed by the government to help members hurt by the coronavirus pandemic — was aided by Hostplus' active role in continued industry consolidation.
For example, in April, A$6 billion Maritime Super parked its retirement assets in Hostplus' pooled superannuation trust in pursuit of greater economies of scale, even as the Sydney-based fund retained its own brand and services to members.
The news release noted that Hosplus is "actively working towards two mergers" — with A$3 billion Intrust Super and $10.8 billion Statewide Super — setting the stage for the benefits of greater scale to continue accruing to members.
Hostplus' latest gain — a strong rebound from the 1.9% decline the fund reported for the pandemic-ravaged fiscal year ended June 30, 2020 — points to the resilience of the fund's investment approach, "characterized by its strong diversification and a prudent allocation to high-quality listed, unlisted and direct assets," the news release said.
Meanwhile, other Hostplus offerings delivered similarly strong results, with the fund's responsible investing-focused SRI Balanced option registering a 21.8% gain for the year and its index balanced option rising 18.9%.