Are you a financial adviser? Frequently asked questions Important things you need to know as you research, manage and transition your investments.
When an investment is made into Hostplus SMI, the money is pooled with money from other investors to buy investments on behalf of all investors. Investment options offered within Hostplus SMI are then divided into units and allocated into the selected investment options based on the value of the investment and the relevant unit price.
How can SMSF trustees invest in SMI?
The Hostplus SMI is a pooled superannuation trust (PST) as defined under the Superannuation Industry (Supervision) Act 1993 (SIS Act) and is designed to pool assets of eligible complying superannuation entities to invest in high-quality assets managed by Hostplus and selected external investment managers. Trustees of SMSFs can invest in Hostplus SMI by purchasing units in one or more of the investment options offered by the Trustee of the PST. The number of units issued, is determined by dividing your investment amount in the relevant investment option, by the unit price which takes into consideration any relevant fees, costs, and taxes.
What is the level of gearing across the portfolios (LVR)?
There is no gearing at the option level, although Fund Managers may utilise gearing within their mandate at fund or individual asset level.
What is the net income yield of the underlying assets?
Hostplus has historically generated a cash yield of 4% to 5% on an aggregate basis. However, due to the open-ended nature of the Fund, IFM Investors can reinvest in underlying assets to maximise capital value, with a view to enhancing cash yields for the future. Historical yields are not indicative of future yields and cash yields are not guaranteed.
How are assets valued in Hostplus SMI?
The Trustee values the assets of each investment option at the latest available prices.
In valuing the assets, an allowance is made for the following to determine the net value of the assets in the relevant Hostplus SMI investment option: · expense recoveries · investment costs · transactions costs; and · income tax. This valuation is then divided by the total units in each option. Unit prices generally rise and fall with movements in the value of underlying assets. How can I unblock and reset my SMI password?
You can reset your password online by clicking on the forgot password link and following the prompts. The link is located below the login boxes. To unblock your account, you’ll need to contact the SMI team on
1300 350819. How do I add funds, or make a withdrawal from my account?
All you have to do is log on to the portal
here. Here’s a quick reminder about the minimum transaction details: SMI investment detailsMinimum additional Investment (per option): $5,000.00 Minimum ongoing account balance amount: $10,000.00 Minimum switch amount (per option): $5,000.00 Minimum redemption amount (per option): $5,000.00 Maximum investment Unlimited. The Trustee reserves the right to decline any application and additional investments at its absolute discretion. How do I change investment options from accumulation to pension?
Due to the different tax treatments of accumulation and pension phases, separate units and prices are allocated to the equivalent options in each of these different phases. That means, to change an investment option from accumulation to pension, a full redemption and subsequent new application will need to be processed.
When will I get my statement?
SMI issues a quarterly statement in the month following the close of the previous quarter. This means, they’re issued in January, April, July and October of each year. As a PST is a tax paid vehicle no annual tax statement is issued.
How is SMI reported to the ATO?
Hostplus SMI investments are managed via a pooled superannuation trust (PST) which is a tax paid investment vehicle. This means that the tax reporting, liability and compliance lies with Hostplus and not the investor.
How do the taxes work in SMI?
The Hostplus SMI investments are managed via a pooled superannuation trust (PST) which is a tax paid investment vehicle. This means that the tax liability lies with Hostplus and not the investor. Depending on whether you are invested in the accumulation or pension units there are different tax treatments that are applied. For accumulation units, the tax on income earned and any capital gains or losses generated on the disposal of assets, is paid for and incorporated within the unit price. For pension units, there is no tax liability as pension is a tax-free environment. When entering SMI it is the SMSF Trustees responsibility to ensure they are selecting the appropriate units to ensure the correct tax treatment is applied.
My SMSF has both accumulation and retirement phase interests, when investing in SMI what units should I select?
Depending on whether your fund is a segregated or unsegregated fund will dictate the answer to this question.
Segregation method Where a fund segregates their assets, the trustee will segregate certain assets or pools of assets to solely support accumulation or retirement phase liabilities. Using this method, a trustee will be able to choose between either pension or accumulation units when investing in SMI to solely support retirement or accumulation phase interests. By matching the retirement and accumulation units to the respective member interests in the SMSF, the trustee will be able to ensure the tax treatment is consistent between the SMI units and the SMSF status. Unsegregated method An unsegregated SMSF is where a fund holds interests in both the accumulation and retirement phases and sets aside assets, or pools of assets, to support a specific interest. This means that the assets earn income and change value over the course of the financial year. At the end of the financial year, any earnings and any capital gains/losses are attributed to each interest phase on a fair and reasonable basis to determine the correct tax application is applied. The proportion of a SMSFs income which can be claimed as exempt from tax, must be calculated and certified by an actuary. This calculation determines the average liabilities in retirement phase as a proportion of the average total superannuation liabilities for the financial year. To ensure the tax treatment of the SMI units is applied within the SMSF consistently, a trustee will need to ensure that the fund holds both Pension and Accumulation units and this match the certified exempt income proportion calculation. Hostplus recommends trustees seek tax advice, before determining what units you should be purchasing prior to your initial investment in SMI. Where can I access the annual audit certificates for SMI?
All relevant audit reports for SMI are available at
hostplus.com.au/super/about-us/governance-and-disclosures under the section 'Reports > financial statements'. Please be advised that Hostplus does not issue a GS007 report for SMI. Frequently asked questions
Everything you need to know as you research, manage and transition your investments.