Australian Communities Foundation (ACF) recently hosted its annual investment portfolio update, bringing together our giving community to gain insights into the Foundation’s responsible investment strategy and performance. With returns averaging 10 per cent per annum over the past three years, the event showcased how ACF continues to align financial growth with positive social and environmental impact.
Opening the session, ACF CEO Andrew Binns reaffirmed ACF’s commitment to values-driven investing, noting that 100 per cent of ACF’s pooled philanthropic assets are responsibly invested.
“Your donations are ethically invested, meaning your money can both grow and do good,” said Andrew, highlighting ACF’s role as the first and only Australian philanthropic foundation to sign the UN Principles for Responsible Investment.
Kylie Charlton, Chair of ACF’s Investment and Impact Committee, provided a compelling overview of the Foundation’s investment philosophy. “If we’re serious about tackling the challenges facing our communities, we need to activate all our capital – not just the dollars we grant, but also the dollars we invest,” she said. Kylie emphasised that responsible investment is not an add-on but a core part of ACF’s mission to build a fairer and more sustainable Australia.
If we’re serious about tackling the challenges facing our communities, we need to activate all our capital – not just the dollars we grant, but also the dollars we invest
She also shared examples of impact investments, including the Conscious Investment Management Social Housing Funds, which have financed hundreds of dwellings for social and affordable housing, and the Side by Side Social Impact Bond, supporting improved school attendance and engagement for First Nations students. “These investments show how ACF capital is working both financially and purposefully,” Kylie noted.
Victoria Lindores, Partner at Koda Capital (ACF’s investment advisors), presented the portfolio’s performance and strategic developments. The long-term portfolio returned 9.95%, exceeding its CPI + 3.9% objective. Victoria said that a key adjustment in ACF’s strategy has been reweighting the portfolio to reduce allocation to Australian equities, in favour of greater international exposure. They have also enhanced diversification in fixed interest holdings to balance risk and returns.
“We’ve focused on increasing impact while maintaining strong financial returns,” Victoria said. She outlined how Koda has refined asset allocation, focused on consistency over short-term market moves, and enhanced impact tracking across the portfolio. The team is also exploring opportunities in alternatives such as renewable energy, microfinance, and aged care – areas where impact potential is highest.
The session concluded with a Q&A, where Kylie explored the perceived trade-offs between ethical investing and financial performance. “Well-managed, diversified responsible investment portfolios can deliver strong benchmark performance,” she said. Victoria added that responsible portfolios may demonstrate greater resilience over time.
Well-managed, diversified responsible investment portfolios can deliver strong benchmark performance
ACF’s investment strategy continues to evolve, with discussions focused on ways to deliver greater impact from the portfolio, alongside exploring new opportunities to engage our giving community around the outcomes their Funds help achieve.
The session reinforced ACF’s leadership in responsible investing and our commitment to stewarding philanthropic capital with purpose. As Kylie summed up, “Every dollar we manage for you supports positive outcomes for people and planet.”
The November edition of ACF’s newsletter will feature the latest quarterly performance update on our responsible investment portfolio.
