Investment Fund to Assist Not for Profit Sector
Wednesday, 30th April 2008 at 1:25 pm
Investment manager and philanthropist Chris Cuffe has launched a pioneering initiative called the Third Link Growth Fund – an Australian-first managed investment scheme that gives its profits back to the charity sector.
The Third Link Growth Fund will provide an ongoing income stream for the NFP sector, while also providing investors with the opportunity to maximise their personal wealth and at the same time make a contribution to society.
The fund is the brainchild of former industry stalwart and philanthropist Chris Cuffe, who in his role as CEO of Colonial First State, gained a reputation for his cutting-edge approach to anticipating trends then corralling top talents to take advantage of them before the market.
Cuffe says the difference between a merely prosperous society and a truly great one lies in the strength of its Not for Profit sector.
Cuffe describes the new fund as unique saying it provides investors with the opportunity to participate in a professionally managed investment fund, but all fees received by Third Link Investment Managers Pty Limited from managing the Fund investments, net of expenses incurred, will go to support the Not for Profit sector.
He says the Fund’s name signifies this important connection between the third sector and the investor.
The income stream derived from the fees will be used to support Social Ventures Australia (SVA), an independent NFP organisation established in 2002. SVA NFPs with funding, mentoring and organisational tools. It also provides services to help strengthen the broader NFP sector.
Chris Cuffe is an Executive Director of SVA.
Cuffe says the third sector needs to find innovative ways to secure guaranteed income streams.
He says there is plenty of wealth out there, but many individuals still take a scatter gun approach to their philanthropy.
Through investing in the innovative Third Link Growth Fund, interested individuals have the ability to create an ongoing annuity stream which will help increase the capacity of SVA and will, over time, allow the whole sector to advance.
Cuffe will manage the underlying investments of the fund through a newly created management company known as Third Link Managers Pty Ltd. A volunteer panel drawn from senior levels of the Australian investment industry will act as advisers to Cuffe to provide input to the investment environment, strategy and specific investments held.
Cuffe says he’s been overwhelmed by the extraordinary and generous support of a number of investment and service professionals who have agreed to waive some or all of the fees that would otherwise be due to them for services rendered.
Some of the providers of ongoing pro bono professional support include Treasury Group Investment Services Limited (the responsible entity); RBC Dexia Investor Services Trust (the custodian and administrator); Minter Ellison (legal work in connection with establishing the Fund); BlueChip Communication Group (communications strategy); and selected professional fund managers.
The minimum investment amount for the fund is $20,000. The fund will close once $150 million has been received in applications. It is expected the fund will generate around $1.5 million per annum for the Not for Profit sector.
The objective of the Fund is to provide a diversified growth-oriented investment, suitable for investors with a minimum five year time frame. The Fund will operate as a fund of funds structure, primarily investing in selected professionally managed investment funds.
The website is at http://www.thirdlink.com.au/