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About

Investments

Augmenting the impact of your giving

Kidston Solar Farm, supported by Impact Fund partner Climate Council. Genex Power.

100% Responsible Investing

At Australian Communities Foundation, we put our values at the centre of everything we do, including how we invest our philanthropic assets. That’s why we’ve committed to 100% of our investment portfolio being responsibly invested by 2021.

This approach will have the benefit of contributing to improved environmental and social outcomes, which will in turn: (1) contribute to a stronger, fairer and more sustainable world; (2) improve the overall financial returns of the portfolio; and (3) increase our investment strategy’s alignment with the values of our giving community.

To assist us in this commitment, we have appointed Brightlight – Australia’s leading specialist advisory firm in responsible investing – as our investment adviser. With their assistance, we now actively seek out investments with not only a strong financial return but also a positive social or environmental impact, guided by the UN Sustainable Development Goals. We’re proud to augment the impact of your giving by ensuring your philanthropic assets are 100% responsibly invested.

Investment Governance

We recognise that the stewardship of our community’s philanthropic assets is a significant responsibility.

Our philanthropic assets are overseen by an Investment Committee to ensure that the portfolio meets financial and ESG objectives in accordance with our Investment Policy and Responsible Investment and Impact Policy.

Portfolio Options

We offer three investment options to meet your giving goals. All three options consider environmental, social and governance factors across each of the underlying investments.

NOTE: ACCESS TO OPTIONS 2 AND 3 ONLY AVAILABLE WITHIN MAIN FUND

Option 1 Long Term

for funds that will be granted out over a longer horizon

40% fixed interest and cash / 60% Australian and global equities

Investment objective: to provide a risk-adjusted return over time that allows for funds to meet granting requirements and modest capital growth of the fund.

Option 2 Short Term

for funds that will be granted out over a shorter horizon

85% fixed interest and cash / 15% Australian and global equities

Investment objective: to prioritise capital preservation and an income return to allow for granting of the capital and income over a shorter time horizon.

Option 3 Cash-Flow Through

for collective giving funds

100% cash

Investment objective: to ensure the preservation of the capital given immediate requirement for grantmaking of collective giving funds.

Financial Performance

Our investment portfolios continued to perform strongly in 2018/19.

The Main Fund returned 8.9% for the year and the Medium Term Income Fund returned 5.7%. The Medium Term strategy was ahead of the strategic benchmark for the year, while the Main Fund strategy was slightly behind. Both strategies outperformed over the three-year and five-year time horizons.