Retirement
Industry fund making billion-dollar ‘bets’ on new tech
The CEO of an industry super fund has explained how the group will invest $1 billion of member funds in venture capital “bets”, including online mortgage lenders and nuclear fusion.
Industry fund making billion-dollar ‘bets’ on new tech
The CEO of an industry super fund has explained how the group will invest $1 billion of member funds in venture capital “bets”, including online mortgage lenders and nuclear fusion.
Appearing before a parliamentary committee on 21 November, Hostplus chief executive David Elia explained that the super fund has made a commitment of $1 billion towards venture capital (VC), of which $670 million has been invested to date.
“We think that in time, some of our largest company exposures will originate from our early VC investments in managers and funds such as Square Peg, Blackbird Ventures, Artisan, Carthona, the CSIRO Innovation Fund, Main Sequence Ventures and the Carnegie Innovation Fund,” the CEO said.
“We think that venture capital will certainly provide us with access to opportunities to investments that would not otherwise be available. Some of these are life-changing in terms of what we’re doing in this space, albeit we are obviously focused on delivering great investment outcomes for our members.”
Mr Elia noted that for the year ending 30 June 2019, the VC asset class delivered 21 per cent for Hostplus.
Deputy chief investment officer Greg Clerk explained that the $43 billion super fund’s connection through the venture capital program is via 40 universities globally and a multiple research institution such as the CSIRO and others.
“The kinds of investments we are in are things like Vaxxas, which is for needle-free vaccinations, which will enable us to deliver these without the protections that need be afforded needle-based treatments and the like,” Mr Clerk said.
Hostplus also has a stake in mortgage provider and neo-lender Athena Home Loans and nuclear fusion business Commonwealth Fusion Systems.
“If you accept the proposition that these new types of technologies, these disruptive technologies, will challenge the old-world economy, then we would argue that we have a fantastic hedge in place,” Hostplus CEO David Elia said.
“We’re actually taking bets with regard to some of those new emerging and disruptive technologies.”
RELATED ARTICLES
Superannuation
Rest appoints Marina Pasika as interim head of private markets
Rest, one of Australia's largest profit-to-member superannuation funds, has announced the appointment of Marina Pasika as the Interim Head of Private Markets. This decision comes as the fund embarks ...Read more
Superannuation
Payday Super bill introduces new challenges for SMBs, reveals Employment Hero CEO
The introduction of the Payday Super bill to the Australian Parliament has sparked a significant response from the business community, particularly among small and medium-sized businesses (SMBs)Read more
Superannuation
Rest urges Parliament to expedite payday super legislation
In a significant move towards enhancing retirement outcomes for Australian workers, Rest, one of the country's largest profit-to-member superannuation funds, has expressed strong support for the ...Read more
Superannuation
Recalibrated super performance test aims to enhance accountability and investment opportunities
In a move that signals a shift rather than a cessation, Australia's government has announced a targeted review of the superannuation performance test. This recalibration, prompted by the latest ...Read more
Superannuation
Super performance test faces a fork balancing member value productive investment and regulatory trust
APRA’s latest superannuation performance test results have reignited a high‑stakes debate: does the test optimise member value or unintentionally curb long‑term investment in housing, infrastructure ...Read more
Superannuation
Aware Super unveils innovative digital tool to boost retirees' financial confidence
Aware Super has unveiled a groundbreaking digital advice tool, Retirement Manager, designed to empower retirees by addressing their most pressing financial concerns. Developed in collaboration with ...Read more
Superannuation
APRA's super shake-up: Balancing accountability and innovation in the next round
Australia’s performance test has forced long-overdue transparency in super and accelerated consolidation. But as the regime broadens, its blunt edges are colliding with investment complexity, ESG ...Read more
Superannuation
APRA’s performance test is doing its job — but now it risks doing the wrong job well
Australia’s superannuation performance test has flushed out chronic underperformance and catalysed consolidation. But its latest results have reignited a bigger question: can a single, ...Read more
Superannuation
Rest appoints Marina Pasika as interim head of private markets
Rest, one of Australia's largest profit-to-member superannuation funds, has announced the appointment of Marina Pasika as the Interim Head of Private Markets. This decision comes as the fund embarks ...Read more
Superannuation
Payday Super bill introduces new challenges for SMBs, reveals Employment Hero CEO
The introduction of the Payday Super bill to the Australian Parliament has sparked a significant response from the business community, particularly among small and medium-sized businesses (SMBs)Read more
Superannuation
Rest urges Parliament to expedite payday super legislation
In a significant move towards enhancing retirement outcomes for Australian workers, Rest, one of the country's largest profit-to-member superannuation funds, has expressed strong support for the ...Read more
Superannuation
Recalibrated super performance test aims to enhance accountability and investment opportunities
In a move that signals a shift rather than a cessation, Australia's government has announced a targeted review of the superannuation performance test. This recalibration, prompted by the latest ...Read more
Superannuation
Super performance test faces a fork balancing member value productive investment and regulatory trust
APRA’s latest superannuation performance test results have reignited a high‑stakes debate: does the test optimise member value or unintentionally curb long‑term investment in housing, infrastructure ...Read more
Superannuation
Aware Super unveils innovative digital tool to boost retirees' financial confidence
Aware Super has unveiled a groundbreaking digital advice tool, Retirement Manager, designed to empower retirees by addressing their most pressing financial concerns. Developed in collaboration with ...Read more
Superannuation
APRA's super shake-up: Balancing accountability and innovation in the next round
Australia’s performance test has forced long-overdue transparency in super and accelerated consolidation. But as the regime broadens, its blunt edges are colliding with investment complexity, ESG ...Read more
Superannuation
APRA’s performance test is doing its job — but now it risks doing the wrong job well
Australia’s superannuation performance test has flushed out chronic underperformance and catalysed consolidation. But its latest results have reignited a bigger question: can a single, ...Read more
