How HostPlus increased advice fee collections eight-fold

hostplus fees tim wilson

9 September 2020
| By Mike |
image
image
expand image

Big hospitality industry fund, HostPlus collected comprehensive advice fees totalling just over $1.266 million last year derived from seven advisers.

What is more, the comprehensive advice fees collected by HostPlus increased eight-fold over the past five years from $148,992 from 10 advisers in 2015 to $1,266,801 in 2019.

At the same time, the fund employed around five advisers dedicated to the provision of intrafund and general advice but did not charge members for the service because the cost was covered off by an administration fee.

That is the bottom line of answers provided by the fund to the House of Representatives Standing Committee on Economics, with the fund telling the committee chairman, Victorian Liberal back-bencher, Tim Wilson that the fees charged for comprehensive personal advice were charged on a fee for service basis

“The Comprehensive Advisors generally only provide comprehensive personal advice. The intrafund advice service provided by Hostplus to its members is separately provided by Hostplus’ Intra-Fund Advisors,” the fund said. “The Intra-Fund Advisors comprise different individuals to the Comprehensive Advisors.”

“The Comprehensive Advisors are remunerated in accordance with their predetermined and set salary. Their remuneration is not determined by or linked to specific levels of advice delivery or advice fee generation.”

It said that all intra-fund advisers were licensed to provide intrafund advice within the Fund, and only provided general or intrafund advice.

“IntraFund Advisor’s remuneration is set without any reference to other sources or types of advice,” it said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Adnan

It is fascinating to see that this year - 2 funds (Mine Super & CFS FirstChoice Employer Super) which failed APRA Perfor...

2 days 2 hours ago
Mitch VB

Thanks for providing us even more work in educating clients on the growth/ defensive splits of all these "top" performer...

2 days 2 hours ago
JohnM

Why would you do that for? It would be a case of the same circus, different clowns....

2 days 8 hours ago

Insignia Financial has unveiled a new operating model and executive team, including a new head of advice, while three senior executives are set to depart the licensee....

1 week 2 days ago

The $280 billion Australian Retirement Trust is the first superannuation fund off the block to report its performance for the 2023-24 financial year....

2 weeks 5 days ago

Analysis by Chant West of the annual performance of growth superannuation funds has uncovered which ones see the best performance....

2 days 2 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Ardea Diversified Bond F
144.00 3 y p.a(%)
3
Hills International
63.39 3 y p.a(%)