Sam Sicilia

Rising demand for global small- and mid-caps has seen Bell Asset Management awarded a $500 million mandate from Hostplus.

For every government that wants to work alongside superannuation funds, there’s one waiting in the wings to deliver a regulatory rebuke. Big super needs to think hard about its plans to build the future.

Hostplus CIO Sam Sicilia believes the trillions of dollars washing around super could be put to good use in nation-building projects – and that criticisms of investing in unlisted assets are an “absurdity”.

While the best financial interests’ duty (BFID) has seen some super funds think twice about ESG,
reconciling ESG and responsible investment with best financial interests’ duty isn’t the hurdle some think.

Some within the sector believe the super wars are over and that industry funds have emerged victorious. But they shouldn’t take their primacy, or the change in government, for granted.

Hostplus is navigating the current market upheaval – and a murky future – by pumping more money into unlisted assets. But despite a gloomy outlook, the “innovation genie” isn’t going anywhere.

Super funds may soon be forced to reveal internal valuations for unlisted assets. But the lesson from the Future Fund is that the new regulations aren’t in anybody’s best interests. While much of government’s recent focus has been on implementing the “Your Future Your Super” performance test, super funds could also soon be subject to…