Hostplus Set to Manage KPMG Super Fund

Hostplus is expected to become the new default superannuation fund for KPMG staff. The appointment would boost Hostplus' $110 billion portfolio and replace a fund known for its strong climate policies. However, the change may lead to concerns about whether sustainability commitments will be maintained.

KPMG began its search for a new default super fund about a year ago, leading to a competitive bidding process across the industry. According to sources, Hostplus has now been selected. The decision follows Hostplus' recent appointment of a former KPMG executive as its chief financial officer, who previously led KPMG’s national superannuation division.

Previously, KPMG was aligned with smartMonday, a division of Future Super. This fund had taken a firm stance against fossil fuel investments. Future Super acquired smartMonday from global insurer Aon in 2022 for $43 million and worked to align its investments with a policy that avoids coal, oil and gas. Under Future Group's direction, smartMonday attracted several large clients but is now facing a shift as companies reconsider long-term commitments to climate-first investment strategies.

While KPMG and Hostplus have yet to publicly confirm the agreement, the decision reflects a trend among large employers reassessing how to balance performance, cost and social values in their default superannuation arrangements. Hostplus offers greater investment scale and a broader strategy, but the move could lead some staff to question the shift away from a fund with a fossil-fuel-free approach.

Source: The Australian