Chris Cuffe

On the milestone occasion of its five year anniversary, Third Link Growth Fund (the Fund) today announced that it has contributed over $2,000,000 since its inception to charitable causes supporting young Australians.

Speaking about the success of the Fund, which invests in Australian listed shares, Founder and Investment Manager, Chris Cuffe said that the charitable contributions, which are now in excess of $60,000 per month, place the Fund in the top 100 charitable givers in Australia.

“When I started the fund in 2008, my aim was to contribute to charity while at the same time producing strong returns for investors, so I feel particularly pleased to have achieved both of those things at the 5 year mark,” he said.

Mr Cuffe added that the focus on philanthropy means that the structure of the Fund is unique.

“All the investment and service professionals who manage the Fund waive their fees, and these fees, net of expenses, go to support the not-for-profit sector,” he said, “which means it’s a win-win all round.”

“Investment returns are not diluted, because managers forego their usual management fee, so there is no additional cost to investors,” Mr Cuffe explained. “But at the same time, I wanted the Fund to be recognised not just for its philanthropic focus but also for strong investment performance.”

“Because clearly our ability to make a significant contribution to charity depends on the ability of the Fund to perform,” he said.

And the Fund has performed. Even despite the carnage wreaked by the global financial crisis, it returned 8.8% pa compound, after fees, since inception to the end of September 2013, outperforming its benchmark by 4% pa over the same period.

The Fund contributes to charities focused on helping young Australians. These include, among others, AIME, which helps indigenous students achieve education equality, Batyr, which brings young people’s social and mental health issues out into the open and the Beacon Foundation, which helps prevent young Australians leaving secondary school from moving into unproductive or insecure pathways.

Mr Cuffe concluded by saying that the measure of a truly great society is the strength of its not-for-profit sector, often referred to as the ‘third sector’.

“If Third Link can contribute to the creation of a truly great Australia by helping our young people thrive, rather than just survive, then that will be the real measure of its success,” he said.

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The Fund was conceived by respected funds management executive Chris Cuffe as a way to support the ‘third’ (non-profit) sector while also delivering a professionally managed investment fund. The innovative structure of the Fund means all fees received, net of expenses incurred, are donated by the investment manager (Third Link Investment Managers Pty Ltd) to the non-profit sector. 

“I am very pleased to say that – through the ongoing support of our professional investment and service pro bono partners – we have generated $1 million to support the non profit activities of SVA since the inception of Third Link Growth Fund.

“This is a substantial effort and it is important to recognise the extraordinary generosity and support of our pro bono partners. These funds are derived from professional fees waived by our pro bono partners for providing their services to the Fund. We are proud of their generosity and support to this unique concept,” Mr Cuffe said.

Investor returns are not diluted by the generation of funds to the non-profit sector.

Rather, investors have enjoyed an annual compound return of almost five per cent (+4.9 per cent per annum) from their investment since inception at the beginning of June 2008. In relative terms, the Third Link Growth Fund has delivered an annual compound return of almost six per cent (+5.6 per cent per annum) since inception, above its benchmark (being the Morningstar Multi-Sector Growth Market Index).

“Put another way, we are pleased to have rewarded investors with some positive growth during what has been a very difficult period for investment markets.  During the same period Third Link Growth Fund has achieved an annual compound return above the All Ordinaries Accumulation Index of +7.5 per cent per annum” Mr Cuffe said.

And in further good news, the Third Link Growth Fund has been awarded a ‘Recommended’ rating by independent research group Zenith. 

In its assessment of the Third Link Growth Fund, Zenith said: “Mr Cuffe demonstrates a clear, well-considered investment philosophy and approach to the Fund which in many ways is refreshing. Cuffe demonstrates a clear understanding of the needs and expectations of the underlying investor. And on this basis Zenith is confident the Fund will successfully meet its objectives in providing investors with attractive investment returns and rates the Fund Recommended.”

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