The Third Link Growth Fund returned +6.8% for the 12 months ending 31 December 2024. This result fell short of the S&P/ASX 300 Accumulation Index benchmark, which delivered a total return of +11.4%, primarily due to our underlying managers' limited allocation to Australian banks, a sector that performed strongly with a +33.7%* return. Additionally, the Fund’s small-cap bias contributed to the underperformance, as this segment of the market did not perform as strongly as the ASX100 during the year. However, there are encouraging signals that the small-cap sector has the key drivers in place for potential outperformance in 2025.
Market volatility toward the end of the year also played a role, as the US Federal Reserve reduced expectations of further rate cuts in 2025, resulting in a 40bp spike in US 10-year bond yields, which disrupted the typical late-December market rally.
This quarter, the Fund welcomed Eley Griffiths Group and their Mid Cap Fund as a new pro bono manager, further diversifying the Fund's exposure to quality mid-cap opportunities.
The Fund paid an income distribution of $0.0325 per unit for the six months ending 31 December 2024 and the Fund size at 31 December 2024 was $167.3m pre distribution.
All fees received from managing Third Link Growth Fund, net of fund expenses, continue to be donated to the charitable sector. Since inception, the Fund has donated $22.5m to thecharities we support, with the last quarter's donations being $334k.
As we move into 2025, our focus remains on delivering strong investment performance while driving meaningful social impact through the Third Link Growth Fund. We invite you to join our webinar on Monday, 10 March, at 2pm (AEDT). We will be joined by two of our underlying pro bono managers, 1851 Capital and Auscap Asset Management. This webinar offers an opportunity to connect, ask questions about the Fund, and gain valuable insights from our underlying managers post the Australian February reporting season.
We are pleased that since inception, the Fund has achieved an annualised return of +10.0%, outperforming its benchmark after fees, generating strong financial and social returns for our investors.
In this quarter's newsletter, we visit our charity partner, the Foundation for Young Australians (FYA), to explore how their partnership with Third Link is making a powerful impact in driving social change.
Thank you for continuing to make a difference in the community through your investment.
Regards,
Chris Cuffe AO
Founding Director and Portfolio Manager Third Link Investment Managers Pty Limited
* Source: ASX Financials ex REITS as at 31 December 2024, Morningstar Australia
The objective of Third Link Growth Fund is to provide a well-managed investment in Australian listed shares. To achieve this, the Fund extensively invests with professional third party investment managers.
As at the end of December 2024, the portfolio was invested as below:
A description of each of the fund managers we invest with can be found on our website. Each of these managers rebates their management fees and performance fees, effectively meaning they are managing the assets of the Fund for free. It is through this extraordinary generosity, together with that of other service providers, that Third Link is able to make sizeable donations to the charitable sector without diluting the returns to investors from the Fund.
The aim of the Fund is to outperform, after fees and over rolling five year periods, the S&P/ASX 300 Accumulation Index¹. As at the end of December 2024 the Fund performance relative to the Fund benchmark was as below:
Returns are calculated after fees have been deducted and assuming reinvestment of distributions. Figures greater than one year are expressed as annual compound returns. No allowance is made for tax. The benefits of franking credits from dividends received have not been included.
1. The S&P/ASX 300 Accumulation Index covers the largest 300 shares listed on the Australian market. Being an accumulation index, it measures changes in both the value and income of the shares.
2. February 2012 reflects the date when the Fund’s investment strategy changed from multi sector growth to Australian equities.
Investors should be aware that past performance is not indicative of future performance. Returns can be volatile, reflecting rises and falls in the value of underlying investments.
Investor Webinar
We are pleased to invite you to an exclusive investor webinar for the Third Link Growth Fund on Monday, 10 March at 2pm (AEDT).
Chris Cuffewill provide a brief update on the Fund before leading a conversation with two of our underlying fund managers. They will share their insights following the February Australian reporting season and discuss where they see Australian equities heading as we kick off 2025.
Chris Stott, Founder and Chief Investment Officer, 1851 Capital
Tim Carleton, Founder and Portfolio Manager, Auscap Asset Management
This is a fantastic opportunity to hear directly from the experts driving investment outcomes for the Fund, gain insights into their investment strategies, and ask any questions you may have.
Chris Cuffe, shares his inspiring journey in combining investment with philanthropy with Sean Aylmer from Fear & Greed. In this podcast, Chris discusses the Third Link Growth Fund and his work with Australian Philanthropic Services, which manages over $2.3 billion for clients, supporting philanthropy across all wealth levels. Listen now.
Third Link Growth Fund Onboards Eley Griffiths as a New Manager
We are pleased to welcome Eley Griffiths Group to the lineup of pro bono fund managers supporting the Third Link Growth Fund. Their Mid-Cap Australian Equities Fund adds further depth and diversity to our investment portfolio, enhancing our ability to deliver both strong returns and meaningful community impact. Read more about their Fund here.
Foundations for Young Australians
In the realm of philanthropic giving, traditional grant-making models often fall short of truly empowering grassroots initiatives. However, a new approach is emerging, one that prioritises First Nations self-determination and amplifies the voices of young Aboriginal and Torres Strait Islander leaders across the country.
The Foundation for Young Australians (FYA) is joining these leaders in rethinking the way we give, seeking to remove barriers when applying for funding through a supported application process, one-on-one mentoring and opportunities to engage in skills building workshops throughout the year. This approach is fundamental to FYA’s First Nations program, Seeding Strength, which not only provides support beyond the funding but also invests in the long term sustainability of the projects and people.
Important Information: This information has been issued by Third Link Investment Managers Pty Ltd (Third Link), ABN 31 128 965 702, AFSL 321611 as investment manager of the Third Link Growth Fund (Fund). This information provided is general information only. It does not constitute financial, tax or legal advice or an offer or solicitation to subscribe for units in the Fund. This information has been prepared without taking account of your objectives, financial situation or needs. Before acting on the information or deciding whether to acquire or hold a product, you should consider the appropriateness of the information based on your own objectives, financial situation or needs or consult a professional adviser. There can be no assurance that the Fund will achieve its targeted rate of return and no guarantee against loss resulting from an investment in the Fund. All investments carry risks. Past fund performance is not indicative of future performance. Fundhost Ltd ABN 69 092 517 087, AFSL No. 233045 is the Responsible Entity for the Fund. Applications can only be made on the application form dated 30 June 2022 accompanying the Fund Product Disclosure Statement (PDS) dated 30 June 2022. Potential investors should consider the PDS and the Additional Information to the PDS (AIB) before deciding whether to invest, or continue to invest in the Fund.
.png?upscale=true&width=320&upscale=true&name=TLGF%20Welcomes%20EGG%20(1).png)
