Well-known philanthropist and former Colonial First State chief executive Chris Cuffe has launched Australia's first managed fund designed to benefit the non-profit sector.
Cuffe described the Third Link Growth Fund as a normal open ended trust where all management fees, set at 1.4 per cent, are passed on to not-for-profit organisation Social Ventures Australia (SVA).
SVA focuses on addressing community challenges in areas such as indigenous communities, young people, the ageing population, employment and the environment.
The fund is biased towards Australian equities and is designed to provide an ongoing income stream for SVA while also providing investors with a possible return and the opportunity to make a contribution to society.
Cuffe said that Australian equities, currently not performing too strongly in the market, have been selected for their long term potential rather than to provide a quick return.
The fund will close at $150 million and once this figure is realised, it has been forecast that at least 1 per cent of this figure, or $1.5 million per annum, will go directly to SVA.
Cuffe described the fund as a "way for people to help out without putting their hands in their pockets".
The minimum investment into the fund is $20,000, however, once entry is made, the benefits to investors include no entry or exit fees, no commissions and the managerial input of many industry experts.
"We know there is plenty of wealth out there, but many individuals still take a scatter gun approach to their philanthropy. There's a smarter way to drive real, positive and lasting change in our communities," SVA executive director Cuffe said.
The underlying investments of the fund will be managed by Cuffe through a newly created management company known as Third Link Managers, which will draw on the experience of a volunteer panel comprising senior members of the Australian investment industry.
