Industry fund Host Plus, which recently had its board suspended, has renewed its contract with its administrator, Superpartners, obtaining a better deal in terms of services and fees along the way.
“We believe that Superpartners was doing a good job before and will continue to do a good job,” says Geoffrey Linton, a director at the fund’s acting trustee Ernst & Young Superannuation Nominees No 1.
In March, the Australian Prudential Regulation Authority (APRA) suspended Host Plus’s board for 120 days after six employer sponsored directors resigned. The board, which endured years of acrimonious infighting, had failed to reach consensus over the selection of an administrator.
In the meantime, Linton says it’s been business as usual at Host Plus, which has also made some changes to its investment manager line up. After discussions with its asset consultant JANA Investment Advisers, it has allocated $100 million to Peter Morgan’s 452 Capital and has increased its property exposure by giving Colonial First State Property and AMP Property $10 million each to manage on its behalf.
The fund has also renegotiated salary terms and conditions with staff and is in the process of finalising a change in its insurer.
Meanwhile, the Supreme Court of Victoria has issued consent orders to restructure the Host Plus board. It will now be made up of three employer representatives, three union representatives and three independent representatives. The fund’s shareholders must appoint these directors and then apply to APRA for approved trustee status.
