HostPlus, the $10 billion superannuation fund for the hospitality, tourism, recreation and sports industries, expects more mergers among funds and urged its members not to make hasty investment decisions during periods of market volatility.
“I have been vocal that there needs to be more consolidation in the industry so it can deliver on economies of scale and costs,” says David Elia, chief executive of HostPlus. “We’re not in any serious or active discussions.”
Elia says market volatility last month has not changed HostPlus members’ investment strategy.
“We’re one of the fortunate funds with a young membership,” he says. “The cash option is just $200 million out of a fund with a bit more than $10 billion. It is often the case that the most engaged and switched on members switch out of funds at the wrong time.”
Elia says the fund’s chief investment officer has “never been a big fan’ of hedge funds. Investments by HostPlus in hedge funds make up less than one per cent of the fund with private equity as much as 4 per cent.
He says Macquarie Group was drafting a business plan for a troubled investment in a retirement village that HostPlus had participated in.
“I expect in the next four to six weeks the revised business plan will be reviewed by us,” says Elia.