Joe Ware
Investment Giving Australia and Pendal Group (ASX: PDL) have announced an Australian-first innovation in the charitable investment sector with the launch of ‘Investment Giving’.
Investment Giving is a new product in the Australian financial services market where investors nominate a charity to receive the distributions from their investment, while retaining ownership of the investment itself. Pendal Group is the first investment manager to implement the Investment Giving structure, by issuing a new class of units – Class G – in its flagship Pendal Sustainable Balanced Fund, offering Pendal’s investors the opportunity to direct distributions from the fund to a participating charity.
The Investment Giving product was conceived and developed by Investment Giving Australia, a not-for-profit organisation with a mission to maximise the impact of charities and their supporters by enabling new forms of investment-based philanthropy.
Joe Ware, Managing Director and Co-Founder of Investment Giving Australia, said: “We are thrilled to launch Investment Giving into the market through our partnership with Pendal, marking an Australian-first innovation in the ways that the financial services sector can contribute to charitable outcomes.
“Recent decades have seen the emergence of new philanthropic structures, such as Workplace Giving and Private Ancillary Funds, which have made an enormous contribution to the strength and stability of the Australian charity sector. Investment Giving is the latest innovation in that space, enabling investors to maximise the efficiency of their charitable support, while retaining ownership of their capital.
“Our mission is to enable charities and their supporters to extend their impact, and we look forward to continuing to work with Pendal and charity partners to further charitable investment opportunities in Australia.”
Pendal’s commitment to the Investment Giving concept goes beyond the creation of Class G units, with the Group also waiving 50% of their management fee on Class G investments.
Pendal Australia’s Chief Executive Officer, Richard Brandweiner, said: “Pendal is delighted to partner with Investment Giving to offer investors the opportunity to combine purpose with performance.
“Pendal’s core belief is that active, responsible investing is an important tool to direct capital to where it can do good and away from where it can create harm. The Investment Giving model takes our responsible investing focus one step further by contributing distributions from the Pendal Sustainable Balanced Fund to worthy causes.
“The Investment Giving model provides repeat cash flows for charities and enables those wanting to donate to a good cause to retain control of their capital. This partnership is a natural alliance for Pendal and we are pleased to be able to offer our responsible investing expertise to support the initiative.”
The Pendal Sustainable Balanced Fund is a managed diversified portfolio that actively invests considering a range of sustainable, ethical and financial criteria. Investments are diversified across Australian and international shares, Australian and international property securities, Australian and international fixed interest, cash and alternative investments. Investors in Class G of the fund benefit from the same active fund management as other investors, with reduced management fees.
The Investment Giving structure is designed to allow both charities and their supporters to focus on outcomes and long-term impact: charities receive an efficient form of income, with minimal overhead cost or administrative burden; supporters experience one-time set-up, then can sit back and watch their impact continue year after year, while receiving tax deductions for the donated investment income, and preserving the ability to withdraw capital.
The structure was developed in close collaboration with Mission Australia, one of Australia’s most trusted charities, with the goal to end homelessness and ensure people in need can thrive.
Mission Australia CEO, Sharon Callister, said: “To engage existing supporters and attract and motivate new supporters, charities like Mission Australia need to innovate and adapt in a rapidly changing philanthropic landscape.
“While seeking to refresh our offerings to philanthropists, we knew it was important to include products that provide the flexibility that philanthropists are seeking – so that it’s easier and more rewarding to support our work. That’s why we are delighted to help pioneer Investment Giving as a new way to fund the work we do to support thousands of people every year.”