Sam Sicilia, CIO of Australian superannuation fund Hostplus, discusses the restructuring and scale of Hostplus's private market and venture capital allocations.
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“Including Hostplus putting 1.2 billion dollars into venture capital, which makes Hostplus the biggest Australian institutional investor super fund in venture capital by a long shot”
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More from Sam Sicilia
Disclosure
Hostplus allocates 0% to fixed income, opting for unlisted assets instead
“53% of our strategic asset allocation is public equities, listed equities. It's a combination of domestic equities and international equities developed markets and international equities emerging markets. 53% in total. The other 47% is unlisted infrastructure,…”
Sam SiciliaJul 1, 2019▶ 27:01Sam Sicilia – Seizing on a Long Time Horizon at HostPlus (EP.103)
Disclosure
Hostplus demands intrusive personal financial details from prospective fund managers
“How much money do you earn? How many kids do you have? What schools do they go to? What are the school fees like? At what stage are you at? What car do you drive? Is it mortgaged? There's a whole set of, you have a right not to answer those questions, but you'…”
Sam SiciliaJul 1, 2019▶ 53:25Sam Sicilia – Seizing on a Long Time Horizon at HostPlus (EP.103)
Insight
Traditional pension models are mathematically broken by multi-decade retirement lifespans
“The real issue is that pension funds were designed at times when people retired at age 65 and conveniently died at age 68.
Today, people retire at 65 or 70 and live to a 108.
How are you going to survive 30 or 40 years not working, not generating an income, li…”
Sam SiciliaJul 1, 2019▶ 37:51Sam Sicilia – Seizing on a Long Time Horizon at HostPlus (EP.103)
Insight
Hostplus uses hedge funds as crisis liquidity, not for volatility protection
“So we view hedge funds playing that role rather than protecting the portfolio from The volatility of equity markets. Our unlisted assets have that role.”
Sam SiciliaJul 1, 2019▶ 1:07:27Sam Sicilia – Seizing on a Long Time Horizon at HostPlus (EP.103)
Insight
Institutional LPs hold the power to end two-and-twenty fee structures
“Institutional investors are the market. You're charging yourself, right? Who is going to change that? Who is going to take action to finally put an end to two and 20? Well, where is the power? Without your allocation, they can't generate a fee. I'm just asking…”
Sam SiciliaJul 1, 2019▶ 1:19:54Sam Sicilia – Seizing on a Long Time Horizon at HostPlus (EP.103)
Insight
Sicilia: Human element and assumptions outweigh pure quantitative data in finance
“The tools were just that. But the human element in finance and that the assumptions that you need to make swamp any of the other benefits that the data provided at the time.”
Sam SiciliaJul 1, 2019▶ 6:56Sam Sicilia – Seizing on a Long Time Horizon at HostPlus (EP.103)
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