AFL punts AMP and takes Hostplus as super manager

The move represents a further shirt-fronting for AMP in the wake of the royal commission.

No free tickets, but bosses can still enjoy a superannuation performance update over a “modest lunch” of “sandwiches and fruit” or a chat over a “low value” cup of tea or coffee. Picture: AAP

AFL employees have given scandal-plagued wealth manager AMP the punt after a 20-year relationship, shifting their superannuation management mandate to industry fund Hostplus.

Hostplus, which was dragged onto the stand at the royal commission to face questions about corporate hospitality for sporting events — including $40,000 spent on AFL Medallion Club tickets — will be the AFL’s new retirement savings manager from March next year.

“Following a comprehensive review of our superannuation arrangements, Hostplus represented the most appropriate solution for our employees and have been appointed the AFL’s default super fund provider,” and AFL spokesman said.

“The AFL and the AFLPA jointly engaged The Heron Partnership, an independent consultancy providing superannuation and actuarial advice to facilitate this review.”

This means the $43bn Hostplus, one of the best-performing funds in Australia, will take millions more in member savings into its kitty.

READ MORE: Australia Post dumps AMP for Australian Super | AMP Super ordered by APRA to make changes to management

The move represents a further shirt-fronting for AMP in the wake of the royal commission. The company’s shares have lost 64 per cent since the start of the banking inquiry, and earlier this year the banking regulator issued strict compliance orders on AMP Super amid concerns over its governance, risk culture and management following the royal commission.

The action comes after AMP Super was referred to APRA following the royal commission for failing to act in its members’ interests and potentially not complying with relevant laws.

The loss of the mandate is the most recent in a string of corporate customers removing their savings from AMP after the company was accused of misleading the Australian Securities & Investments Commission over a fees-for-no-service scandal revealed at the banking royal commission.

Earlier this year, AustralianSuper wont the $300m contract to manage the savings of Australia Post employees. AMP also lost the Anglican National Super Plan to Mercer, while grocery supplier Metcash had dropped its long-term super contract with the company in favour of SunSuper. Coca-Cola Amatil, an AMP client since 2005, has also put its AMP contract out to tender.

Before the defections of more than 10 corporate clients, AMP managed about $32bn under corporate super mandates.

In October, AMP said there was no material outflow from the loss of corporate super mandates during the third quarter of 2019. But the company tipped corporate super outflow of approximately $1.4bn expected during the next 12 months.

According to the Australian Securities & Investments Commission guidance on corporate hospitality, following Hostplus’ appearance at the royal commission, bosses will now no longer be granted free tickets to football grand finals by the country’s superannuation funds, but they will still be allowed to enjoy a performance update over a “modest lunch” of “sandwiches and fruit” or a chat over a “low value” cup of tea or coffee.