Fund manager Perpetual Private Clients announced the launch of a new fund specifically developed for the non-profit and charitable organisations.
Head of philanthropy with Perpetual David Knowles said that the Charitable and Community Investor Fund has been tailored to meet the unique investment needs and taxation attributes of non for profit (NFP) organisations.
“Charities and non-profit organisations are constantly challenged by the need to generate income to fund day-to-day operations, whilst growing their assets to ensure they can deliver better long-term outcomes,” Knowles said.
“Many also face numerous issues that trustees are legally bound to consider when making investments, such as the need for diversification and to maintain the real value of capital over time.”
According to Knowles, to achieve the required diversification, the fund will adopt a multi-manager approach, and invest across a range of asset classes including alternatives.
Asset allocation for the fund will be 80 per cent exposure to growth assets and 20 per cent to defensive assets. A $100,000 minimum investment is required, with a recommended investment time frame of five years.
“Not only are investors gaining exposure to this asset class for its growth potential, it also means they can increase their income by reclaiming from the ATO the imputation credits attached to the franked dividends,” said Knowles.
