Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 210

Third Link Growth Fund announces soft close

[Editor’s note: In September 2016, Chris Cuffe wrote to our readers with an update on the Third Link Growth Fund (the Fund). He said in part:

“I started Third Link in 2008 with a unique idea. What if I established a fund where all the fees received for managing the investments, net of some tiny expenses, were donated to charities. After a long career in wealth management, I felt I had an ability to select good fund managers who could outperform over time. If I could convince the managers and administrators to provide their services for free for a worthy cause, everyone could win.”

At the time, the Fund had recently exceeded $100 million, and Chris recommitted to close the fund to new investors when it reached $150 million. Since September 2016 there has been significant inflows to the Fund, to the great benefit of the many charities the Fund supports. Chris has this week issued a Media Release announcing that the Fund has almost reached this soft close target, and he has set a firm closure date. New investors will not be accepted after this date].

***

Third Link Growth Fund will be closed to new investors at the end of August 2017.

Launched in May 2008, the Fund invests in Australian equities via third party professional investment managers. Management fees are donated to charity.

Since its inception the Fund has donated more than $6.5 million to charity, predominantly those helping to support children and young people. It presently donates over $150,000 per month. This amount is expected to continue growing in future even with the Fund closed to new investors.

The Fund takes a portfolio approach to charitable giving, forging long-term partnerships with quality organisations such as Australian Indigenous Mentoring Experience (AIME), National Centre for Childhood Grief, The Song Room, batyr, Foundation for Rural and Regional Renewal, Dismantle, SHINE for Kids, BackTrack, Mirabel Foundation, Raise Foundation and Children’s Ground.

Chris Cuffe said, “I am extraordinarily proud of Third Link and the generosity of its pro bono fund managers and services providers that have made it possible. It was always my intention to close the Fund to new investors once it reached $150 million, and having exceeded $144 million at the end of June 2017, I have decided it is appropriate to close the Fund to new investors at the end of August 2017.”

The Fund commenced as a multi sector growth fund but, following investor feedback, altered its mandate in February 2012 when it became a purely Australian equities fund.

In the more than five and a half years since it has been an Australian equities fund, Third Link Growth Fund has produced a compound return of 14.0% per annum after fees, outperforming the S&P/ASX300 Accumulation Index by 3.1% per annum. This has demonstrated the success of its active management approach. Since inception over nine years ago, the Fund has delivered a compound return of 9.5% per annum after fees, despite the impact of the global financial crisis. During this same period, the bank bill rate was 3.6% per annum and the Australian share market returned 4.6% per annum.

 

Chris Cuffe is Founder and pro bono Portfolio Manager of Third Link Growth Fund.

The pro bono fund managers used in Third Link Growth Fund are Aberdeen Standard Investments (formerly Aberdeen Asset Management), Bennelong Australian Equity Partners, Colonial First State Global Asset Management, Cooper Investors, Greencape Capital, Harness Asset Management, JBWere Wealth Management, L1 Capital, Lazard Asset Management Pacific Co, Lennox Capital Partners, Montgomery Investment Management, Ophir Asset Management, Paradice Investment Management, and Pengana Capital.

The pro bono service providers to Third Link Growth Fund include Bennelong Funds Management (Responsible Entity), RBC Investor Services Trust (custodian and administrator), Minter Ellison (legal work), Deloitte (auditors and tax advisers to the Fund), Ernst & Young (auditors of the Manager) and Nexia Australia (tax advisers to the Manager).

If you would like to consider whether to invest in the Fund, please see the Product Disclosure Statement (PDS) and the Additional Information to the PDS here. The information above is general information only. It does not constitute financial, tax or legal advice or an offer or solicitation to subscribe for units in the Fund. There can be no assurance that the Fund will continue to achieve its targeted rate of return and no guarantee against loss resulting from an investment in the Fund.


 

Leave a Comment:

     
banner

Most viewed in recent weeks

Unexpected results in our retirement income survey

Who knew? With some surprise results, the Government is on unexpected firm ground in asking people to draw on all their assets in retirement, although the comments show what feisty and informed readers we have.

10 reasons wealthy homeowners shouldn't receive welfare

The RBA Governor says rising house prices are due to "the design of our taxation and social security systems". The OECD says "the prolonged boom in house prices has inflated the wealth of many pensioners without impacting their pension eligibility." What's your view?

Three all-time best tables for every adviser and investor

It's a remarkable statistic. In any year since 1875, if you had invested in the Australian stock index, turned away and come back eight years later, your average return would be 120% with no negative periods.

The looming excess of housing and why prices will fall

Never stand between Australian households and an uncapped government programme with $3 billion in ‘free money’ to build or renovate their homes. But excess supply is coming with an absence of net migration.

Five stocks that have worked well in our portfolios

Picking macro trends is difficult. What may seem logical and compelling one minute may completely change a few months later. There are better rewards from focussing on identifying the best companies at good prices.

Six COVID opportunist stocks prospering in adversity

Some high-quality companies have emerged even stronger since the onset of COVID and are well placed for outperformance. We call these the ‘COVID Opportunists’ as they are now dominating their specific sectors.

Latest Updates

Retirement

10 reasons wealthy homeowners shouldn't receive welfare

The RBA Governor says rising house prices are due to "the design of our taxation and social security systems". The OECD says "the prolonged boom in house prices has inflated the wealth of many pensioners without impacting their pension eligibility." What's your view?

Interviews

Sean Fenton on marching to your own investment tune

Is it more difficult to find stocks to short in a rising market? What impact has central bank dominance had over stock selection? How do you combine income and growth in a portfolio? Where are the opportunities?

Compliance

D’oh! DDO rules turn some funds into a punching bag

The Design and Distribution Obligations (DDO) come into effect in two weeks. They will change the way banks promote products, force some small funds to close to new members and push issues into the listed space.

Shares

Dividends, disruption and star performers in FY21 wrap

Company results in FY21 were generally good with some standout results from those thriving in tough conditions. We highlight the companies that delivered some of the best results and our future  expectations.

Fixed interest

Coles no longer happy with the status quo

It used to be Down, Down for prices but the new status quo is Down Down for emissions. Until now, the realm of ESG has been mainly fund managers as 'responsible investors', but companies are now pushing credentials.

Investment strategies

Seven factors driving growth in Managed Accounts

As Managed Accounts surge through $100 billion for the first time, the line between retail, wholesale and institutional capabilities and portfolios continues to blur. Lower costs help with best interest duties.

Retirement

Reader Survey: home values in age pension asset test

Read our article on the family home in the age pension test, with the RBA Governor putting the onus on social security to address house prices and the OECD calling out wealthy pensioners. What is your view?

Sponsors

Alliances

© 2021 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. Any general advice or ‘regulated financial advice’ under New Zealand law has been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. For more information refer to our Financial Services Guide (AU) and Financial Advice Provider Disclosure Statement (NZ). You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.

Website Development by Master Publisher.