Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 249

Third Link Growth Fund’s 10th anniversary

It’s a personal thrill that Third Link Growth Fund has just passed its 10th anniversary. The Fund opened for investment on 10 April 2008, in hindsight a difficult time to launch with the global financial crisis around the corner.

With the passing of these 10 years, it’s a good time to pause, reflect and celebrate the achievements of the Fund. These include:

  • The Fund has grown to $163 million at the end of March 2018, a significant achievement given there has been no sales force selling the product. It relies on word-of-mouth, the innovative charitable angle whereby all fees are donated to charity (a structure since copied successfully as well), a good performance track record and some favourable press.

  • Over the 10 years since inception, the Fund has achieved a compound annual return of 9.6% after fees. During this same time period the bank bill rate has yielded 3.4% per annum.

  • From February 2012, the Fund altered its objective from a multi-sector growth fund (invested in a combination of Australian shares, international shares, property and fixed interest) to one that invested only in Australian shares. Since that time, the Fund has achieved a compound annual return of 13.6% after fees compared with the S&P/ASX300 Accumulation Index increasing by 9.8% per annum. The Fund outperformed this benchmark by 3.8% per annum.

  • Zenith Investment Partners, an independent research group, currently has a ‘Recommended’ rating on the Fund. Furthermore, the Australian financial data provider, FE, and Money Management have recently launched the FE Crown Fund ratings in Australia (a quantitative measure of performance, consistency and volatility) and Third Link Growth Fund has received the maximum score of 5 crowns. The Fund sits within the top 10% of its peer group.

  • Since inception, over $7,500,000 has been donated to charities (all listed on the Fund’s web site, and which include 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) from the fees received in managing the Fund. Donations are now running at around $175,000 every month!

Of course, none of this could have been achieved without the extraordinary generosity of the underlying investment managers and service providers who all provide their services on a pro bono basis. The investment managers include 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. And the service providers include Bennelong Funds Management (Responsible Entity), RBC Investor Services Trust (custodian and administrator), Minter Ellison (legal work), Deloitte (auditors of the Fund), Ernst & Young (auditors of the Manager), KPMG (tax advisers to the Fund) and Nexia Australia (tax advisers to the Manager).

Thank you to those who have supported the Third Link Growth Fund and helping make the concept a reality. The Fund closed to new investors in September 2017.

 

Chris Cuffe is the Founder and Portfolio Manager of Third Link Growth Fund. Past performance is not indicative of future performance. This information provided is general and does not constitute personal financial, tax or legal advice.

RELATED ARTICLES

Charitable giving and tax deductions

Reform needed to allow donations from super to charity

Gail Kelly reveals how her family gifts money

banner

Most viewed in recent weeks

Vale Graham Hand

It’s with heavy hearts that we announce Firstlinks’ co-founder and former Managing Editor, Graham Hand, has died aged 66. Graham was a legendary figure in the finance industry and here are three tributes to him.

The nuts and bolts of family trusts

There are well over 800,000 family trusts in Australia, controlling more than $3 trillion of assets. Here's a guide on whether a family trust may have a place in your individual investment strategy.

Welcome to Firstlinks Edition 583 with weekend update

Investing guru Howard Marks says he had two epiphanies while visiting Australia recently: the two major asset classes aren’t what you think they are, and one key decision matters above all else when building portfolios.

  • 24 October 2024

Warren Buffett is preparing for a bear market. Should you?

Berkshire Hathaway’s third quarter earnings update reveals Buffett is selling stocks and building record cash reserves. Here’s a look at his track record in calling market tops and whether you should follow his lead and dial down risk.

Preserving wealth through generations is hard

How have so many wealthy families through history managed to squander their fortunes? This looks at the lessons from these families and offers several solutions to making and keeping money over the long-term.

A big win for bank customers against scammers

A recent ruling from The Australian Financial Complaints Authority may herald a new era for financial scams. For the first time, a bank is being forced to reimburse a customer for the amount they were scammed.

Latest Updates

Shares

Looking beyond banks for dividend income

The Big Four banks have had an extraordinary run and it’s left income investors with a conundrum: to stick with them even though they now offer relatively low dividend yields and limited growth prospects or to look elsewhere.

Exchange traded products

AFIC on its record discount, passive investing and pricey stocks

A triple headwind has seen Australia's biggest LIC swing to a 10% discount and scuppered its relative performance. Management was bullish in an interview with Firstlinks, but is the discount ever likely to close?

Superannuation

Hidden fees are a super problem

Most Australians don’t realise they are being charged up to six different types of fees on their superannuation. These fees can be opaque and hard to compare across different funds and investment options.

Shares

ASX large cap outlook for 2025

Economic growth in Australia looks to have bottomed, which means it makes sense to selectively add to cyclical exposures on the ASX in addition to key thematics like decarbonisation and technological change.

Property

Taking advantage of the property cycle

Understanding the property cycle can be a useful tool to make informed decisions and stay focused on long-term goals. This looks at where we are in the commercial property cycle and the potential opportunities for investors.

Investment strategies

Is this bedrock of financial theory a mirage?

The concept of an 'equity risk premium' has driven asset allocation decisions for decades. A revamped study suggests it was a relatively short-lived phenomenon rather than the mainstay many thought.

Vale Graham Hand

It’s with heavy hearts that we announce Firstlinks’ co-founder and former Managing Editor, Graham Hand, has died aged 66. Graham was a legendary figure in the finance industry and here are three tributes to him.

Sponsors

Alliances

© 2024 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. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. 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.