Cuffe Fund Comes Out 14pc Ahead
6 November 2008 at 2:54 pm
Successful investment industry veteran and philanthropist Chris Cuffe has announced the first performance results of his Third Link Growth Fund, an Australian-first managed investment scheme that opened to investors in late May, 2008.
Despite volatile investment markets, the Fund has produced a strong out-performance – relative to the All Ordinaries Accumulation Index – of +13.8 per cent in its inaugural four-month performance measurement period to the end of September, 2008.
The Third Link Growth Fund was set up to give concerned investors the ability to provide a valuable, sustainable and continuing contribution that helps increase the capacity of the vital Third (philanthropic) Sector while at the same time participating in a competitive and professionally managed investment opportunity.
Chris Cuffe says the result, while over a short period, was largely achieved by good asset allocation together with solid performances to date from the 15 underlying managers of the Fund.
The Fund itself produced better numbers than the index for three of the four months it had been in operation.
He says while the aim is to outperform the returns of the All Ordinaries Accumulation Index over time there is considerable flexibility in the type of investments the Fund may hold outside of Australian listed shares, which they have taken advantage of.
Cuffe says although the Fund reached its minimum 50 per cent investment level in growth-oriented investments in early July, it has taken a cautious approach since then which has benefited investors during this very weak and volatile period.
He says the Fund has also been helped by its early exposure to international equities, some of which have benefited from the weakening in the Australian dollar.
The global equities exposure included a number of ‘tilts’ to areas such as global infrastructure, the resources sector, Asian equities and stocks benefiting from the move to reduce carbon emissions.
Another solid performer for the Fund was global listed property which the manager moved into after identifying the sector as ‘oversold’ and representing good value compared to other assets.
Cuffe says the uncertain investment climate since the Fund commenced had restrained him from being fully invested in growth assets.
The Fund today has 65 per cent exposure to growth assets but Cuffe intends to continue to dollar cost average into the market to increase the Fund’s exposure to quality growth assets and take advantage of the current volatility.
Cuffe manages the underlying investments of the Fund with the support of a select group of industry experts who have agreed to act as advisers to him on the investment environment, strategy and specific investments held.
As with the underlying managers of the Fund, Cuffe used his extensive network of contacts in the investment industry to handpick these advisers.
The Third Link Growth Fund will also provide an ongoing income stream for the Not for Profit sector as all management fees received from managing the Fund, net of expenses incurred, will be donated to the charitable sector.
This structure provides investors with the unique opportunity to maximise their personal wealth and at the same time make a contribution to society.
Since the Fund’s inception, more than $100,000 in donated fees have been channelled to Social Ventures Australia (SVA), an independent Not for Profit organisation which focuses on addressing pressing community challenges. Cuffe is an executive director of SVA.
Further details about the Third Link Growth Fund can be found at www.thirdlink.com.au.