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Capital Allocators – Inside the Institutional Investment Industry

Kristian Fok – Australia’s CBUS Superannuation CIO (Capital Allocators, EP.66)

Capital Allocators – Inside the Institutional Investment Industry

Ted Seides – Allocator and Asset Management Expert

Investing, Capitalallocation, Business

4.8806 Ratings

🗓️ 27 August 2018

⏱️ 64 minutes

🧾️ Download transcript

Summary

Kristian Fok is the Chief Investment Officer of Australia’s A46B ($35B USD) Construction & Building Industry Superannuation Fund, or CBUS. Prior to joining CBUS in 2012, Kristian spent 14 years consulting to Australian Super Funds at Frontier Advisors.  Australia’s Superannuation program mandates that employers contribute 9.5% of its employee salaries into a Super Fund, which is owned by the employee, like a 401k in the U.S., and grows with investment returns until retirement. The employees, in turn, have a choice of providers to invest their savings. The model has been one of the most successful in the world in preparing the population for retirement.

Our conversation starts with Kristian’s path to the CIO seat at CBUS and focuses on the hybrid investment model blending internal and external management. We discuss the transition to internal management as assets scale, example of CBUS’ internal property company, economics of internal management, talent recruiting and retention, portfolio structure, external manager selection, people management, and investment with a long time-horizon.

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Transcript

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0:00.0

Capital Allocators is brought to you by Ten East, an investment platform for sophisticated investors to access private markets.

0:10.5

Ten East brings benefits of having your own family office without the cost and headaches of doing so.

0:16.8

It's founded and led by Michael LaFelle, former deputy executive managing member of Davidson Kempner.

0:24.2

Michael and his investment team offer members the opportunity to co-invest by offering at their

0:29.1

discretion. Michael and his team source, diligence, and commit material personal capital to each

0:35.3

investment. The opportunities shared on the Ten East platform

0:38.9

offer exposure to private credit, real estate, niche venture and private equity, and other

0:44.5

idiosyncratic investments that typically aren't available through traditional channels.

0:49.2

The principles have over a decade track record of investing in these types of exposures

0:53.5

across more than 350

0:55.7

transactions. Post-investment, the Tennis team conducts ongoing monitoring and reporting,

1:01.8

just as you'd expect from an institutional investment organization. I've known Michael for about a

1:07.0

decade, and after becoming impressed by the quality of 10 East offerings, its research process,

1:12.2

and high-quality investment team, I became an advisor to the organization, an investor in multiple

1:18.0

offerings. You can learn more and join me as a member at 10-east.com. That's the number 10,

1:25.4

east.co.O.

1:33.5

Capital Allocators is also brought to you by SRS Aquium.

1:37.3

Want to make sure your M&A processes aren't stuck in the past?

1:43.6

How about partnering with a company that's been defining the future of dealmaking for nearly two decades instead?

1:44.4

When it comes to M&A innovation, SRS Aquium has reshaped the way deals get done more than anyone

1:50.9

else, streamlining processes for maximum efficiency and minimum headaches.

1:56.6

Professional shareholder representation? Online M&A payments, digital stockholder solicitation,

...

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