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
Aware Super slashes admin fees for retirees by up to 25 per cent
Aware Super has reduced administration fees for members with a retirement income account by up to 25 per cent and lowered the maximum annual fee. Read more
Superannuation
SuperAPI co-founder criticises Labor's superannuation tax as 'sneaky tax on young people'
The co-founder of SuperAPI has labelled Labor's proposed tax on superannuation balances above $3 million as a "sneaky tax on young people, tomorrow" disguised as a policy targeting wealthy retirees ...Read more
Superannuation
Election policies could reshape Australia's superannuation landscape, expert warns
Competing superannuation policies from Australia's major political parties could have significant implications for investors and retirees, according to a financial expert. Read more
Superannuation
Industry leaders weigh in on concessional super tax as Budget confirms $55bn investment
Changes to the taxation of superannuation earnings and contributions have drawn mixed responses from financial and payroll sector leaders, as the Federal Budget confirms over $55 billion in ...Read more
Superannuation
Call for indexation on super tax cap as $3m threshold draws criticism
A senior executive in the superannuation technology sector has criticised the Federal Government for failing to index the proposed $3 million superannuation tax cap, arguing the measure will unfairly ...Read more
Superannuation
Rest members back calls for fairer superannuation rules ahead of Federal Budget
Rest has called on the Federal Government to implement superannuation reforms aimed at improving fairness across the system, after member survey results showed strong support for a range of proposed ...Read more
Superannuation
Rest welcomes progress on ‘Payday Super’ reform
Rest, one of Australia’s largest profit-to-member superannuation funds, has welcomed the Australian Government’s release of draft ‘Payday Super’ legislation, which aims to align Superannuation ...Read more
Superannuation
SuperAPI and Humanforce partner to improve superannuation compliance for one million Australians
Superannuation engagement platform SuperAPI has partnered with human capital management provider Humanforce to streamline payroll and superannuation contributions for more than one million Australian ...Read more
Superannuation
Aware Super slashes admin fees for retirees by up to 25 per cent
Aware Super has reduced administration fees for members with a retirement income account by up to 25 per cent and lowered the maximum annual fee. Read more
Superannuation
SuperAPI co-founder criticises Labor's superannuation tax as 'sneaky tax on young people'
The co-founder of SuperAPI has labelled Labor's proposed tax on superannuation balances above $3 million as a "sneaky tax on young people, tomorrow" disguised as a policy targeting wealthy retirees ...Read more
Superannuation
Election policies could reshape Australia's superannuation landscape, expert warns
Competing superannuation policies from Australia's major political parties could have significant implications for investors and retirees, according to a financial expert. Read more
Superannuation
Industry leaders weigh in on concessional super tax as Budget confirms $55bn investment
Changes to the taxation of superannuation earnings and contributions have drawn mixed responses from financial and payroll sector leaders, as the Federal Budget confirms over $55 billion in ...Read more
Superannuation
Call for indexation on super tax cap as $3m threshold draws criticism
A senior executive in the superannuation technology sector has criticised the Federal Government for failing to index the proposed $3 million superannuation tax cap, arguing the measure will unfairly ...Read more
Superannuation
Rest members back calls for fairer superannuation rules ahead of Federal Budget
Rest has called on the Federal Government to implement superannuation reforms aimed at improving fairness across the system, after member survey results showed strong support for a range of proposed ...Read more
Superannuation
Rest welcomes progress on ‘Payday Super’ reform
Rest, one of Australia’s largest profit-to-member superannuation funds, has welcomed the Australian Government’s release of draft ‘Payday Super’ legislation, which aims to align Superannuation ...Read more
Superannuation
SuperAPI and Humanforce partner to improve superannuation compliance for one million Australians
Superannuation engagement platform SuperAPI has partnered with human capital management provider Humanforce to streamline payroll and superannuation contributions for more than one million Australian ...Read more
