Super Devaluations... It Begins... (Getting in a devaluation before the withdrawals start) As the Coronavirus (COVID-19) crisis continues to escalate and adversely impact investment markets, our economy and our day-to-day lifestyles, we understand that many of our members and investors have justifiable concerns regarding the ongoing impacts these matters may have on their superannuation and pension balances. We want to reassure you, our members and investors, that we are actively monitoring these unprecedented circumstances to ensure that your hard-earned retirement savings continue to be well managed. In doing so, it is our duty and our objective to ensure that we do everything possible to ensure that all members and investors are treated equitably during these extraordinary times. While the full macro-economic impact of COVID-19 will not be fully understood for some time, it’s clear that certain infrastructure and property assets such as airports, toll roads, and shopping centres have been materially affected by the current crisis. As a result, and taken as a broad category of assets, Hostplus’ unlisted investments would expectantly and realistically experience lower valuations in the current climate than they would ordinarily have had prior to the emergence of COVID-19 a few short months ago. With this in mind, we have worked closely with our investment managers and asset consultant to determine appropriate impacts on the valuations of these unlisted assets so as to ensure that these assets are measured and appropriate for the current circumstances. This in turn ensures that our investment unit prices appropriately reflect these circumstances in the best interests of all members and investors. As such, Hostplus has devalued assets within its Property and Infrastructure portfolios by a range of 7.5%-10%, depending on the individual investment and the age of its most recent independent valuation. In a similar vein, Hostplus’ Private Equity and Venture Capital investments have also been devalued, for similar considerations and prudence, by 15% on average. Asset devaluations are being experienced across all sectors of the economy. However, the current decreases in the valuations of Hostplus’ unlisted asset investments are, based on our analysis, less extreme compared to the current heightened volatility being experienced in listed markets. It is that long-term price stability which is a key positive attribute of our strategic investment in unlisted assets. These revaluations have already been included in the Fund’s unit pricing and are reflected in account balances. Alongside our professional asset managers and asset consultant, we will continue to monitor investment markets closely to ensure the pricing of our unlisted assets remain appropriate for the circumstances as they evolve and to ensure that all asset values reflect ‘fair value’ across all account balances. We will also continue to provide updates as new information arises. Please refer to hostplus.com.au/covid19 for the latest Hostplus updates. And finally, and importantly, before you make any decision about your superannuation or pension assets, we caution and encourage you to seek individual financial advice and consider your own circumstances and financial objectives. The information contained in this material is general in nature. Consider your own objectives, financial situation and needs, which are not accounted for, before making a decision. Issued by Host-Plus Pty Limited ABN 79 008 634 704, AFSL 244392 as trustee for the Hostplus Superannuation Fund (the Fund) ABN 68 657 495 890, MySuper No 68 657 495 890 198.