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Pendal (ASX: PDL) has teamed up with not-for-profit organisation Investment Giving Australia to establish a new philanthropic fund that allows investors to direct their distributions to charities.
The launch of the Investment Giving model will see Pendal issue a new class of units – known as Class G - in its Pendal Sustainable Balanced Fund, allowing investors the opportunity to send distributions from the fund to a participating charity whilst also retaining ownership of the investment.
The Sydney-based investment firm has agreed to waive 50 per cent of the management fee on the new Class G investments.
Pendal CEO Richard Brandweiner says 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,” he added.
“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 Pendal Sustainable Balanced Fund is a managed diversified portfolio that considers a range of a range of sustainable, ethical and financial criteria before backing an asset.
As of 31 October 2021, the fund has allocated 85.1 per cent toward growth assets – with international shares making up 35.8 per cent, followed by Australian shares (26.7 per cent), alternatives (15.6 per cent) and listed property/infrastructure assets (7 per cent).
The remaining 14.9 per cent comprises defensive assets, with cash making up 7.5 per cent, followed by Australian fixed interest (6.4 per cent) and international fixed interest (1.0 per cent).
The partnership marks the first use of the Investment Giving structure by a wealth manager. To join the fund, a minimum investment of $25,000 must be made.
“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 Australia managing director and co-founder of Joe Ware said.
“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.”
The new investment structure was developed in close collaboration with Mission Australia, which is a national Christian charity that is aiming to end homelessness and provide access to affordable housing.
“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,” Mission Australia CEO Sharon Callister said.
“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.”
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