Future Generation Women’s Fund Aims to Transform the Investment Landscape

December 04, 2024 02:05 PM AEDT | By Team Kalkine Media

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Future Generation Women’s Fund Aims to Transform the Investment Landscape — Image source: shutterstock

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Highlights

The new fund will prioritize gender diversity and economic equality.

Renowned female fund managers will lead the initiative.

The fund is backed by $100 million from the Minderoo Foundation.

The Australian funds management sector is witnessing a transformative initiative with the launch of Future Generation Women, an all-women investment trust seeded with $100 million from the Minderoo Foundation. This new venture, led by philanthropic leaders Nicola and Andrew Forrest, marks a significant step towards addressing gender diversity and economic equality. The fund, which operates under the Future Generation umbrella, will focus on advancing causes supporting women and their children.

Future Generation Women stands apart by charging no management or performance fees. Instead, it will donate one percent of its annual assets to organizations that promote gender equality and financial security. The fund also incorporates a "gender lens," evaluating investments based on criteria like equitable pay, diverse leadership, and policies that foster work-life balance.

Renowned fund manager Catherine Allfrey from WaveStone Capital has joined the initiative. Allfrey has long admired the Future Generation model, particularly its commitment to mental health causes, and views this as an opportunity to further gender diversity in the male-dominated investment industry. Statistics highlight this imbalance, with only 19 percent of portfolio managers in Australia being women, despite evidence suggesting that female-led strategies often exhibit greater diversification and risk awareness.

Allfrey will collaborate with a distinguished team of female fund managers. On the Australian equities side, the team includes Emma Fisher (ASX:AIR), Katie Hudson (ASX:YARRA), and Jun Bei Liu (ASX:TRB), among others. For global stocks, leaders such as Nikki Thomas (ASX:MFG) and Qiao Ma (ASX:MUN) will contribute their expertise. The advisory committee will be chaired by Elana Rubin, with Caroline Gurney leading the overall operations.

The initiative reflects broader market challenges. Allfrey notes a rise in passive investing, with exchange-traded funds (ETFs) gaining traction among financial advisers and institutional investors. This shift has led to increased momentum-driven trading, favoring large-cap stocks like Sigma Healthcare (ASX:SIG) while sidelining smaller companies. Despite these trends, Allfrey emphasizes the need for active managers to adapt and innovate.

The Future Generation Women fund exemplifies a shift towards inclusive and socially responsible investing. Its impact may redefine not only the composition of investment teams but also the strategies and outcomes they deliver. Through its unique focus on diversity and equity, the fund aims to inspire broader changes across the industry.

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