Dear investor

This issue of the newsletter includes an update on the Fund’s portfolio and its performance for the quarter ended 30 June 2021. The performance continues to be pleasing, justifying our long-term investment strategy.

In June, Third Link retained a ‘Recommended’ rating from leading research house, Zenith Investment Partners¹ in the Australian Shares - Large Companies sector, traditionally one of the most competitive in the investment landscape. You can read more about the rating on our site.

I'm also delighted to share that the Fund donated $922k to Third Link portfolio charities last quarter, bringing our total donated since inception to $15.2m. We chatted with Maddy Buchner OAM, to tell us more about her organisation, Little Dreamers, and how they're helping to make sure Young Carers get the support they need.

Finally, if you're looking for something different to listen to on your next lockdown walk, I sat down with the co-founder and CEO of Ethical Partners Fund Management, Matt Nacard, on his Good Investing podcast to talk about Third Link and all things investing.

Thank you for investing with Third Link and allowing your fees to make a difference. I hope you and yours stay safe and well.

Regards,
Chris Cuffe AO, Founding Director and Portfolio Manager
Third Link Investment Managers Pty Limited

Portfolio update

The objective of Third Link Growth Fund (“the 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 June 2021, the portfolio was invested as below:

The Fund paid an income distribution of $0.0461 cents per unit for the period ending 30 June 2021.

In the quarter to 30 June 2021, the Fund made partial redemptions in the Aberdeen Standard Australia Small Companies Fund and Pengana Emerging Companies Fund and an initial investment in the Eiger Capital Small Companies Fund.

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.

Fund performance

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 June 2021 the Fund performance relative to the Fund benchmark was as below:

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.

The longer-term performance of the Fund continues to be very pleasing. This has been achieved because of solid long-term investment results by the fund managers utilised by the Fund, validating their continuing inclusion.

This result also continues to demonstrate that our active approach to adding value for investors over the long term is proving to be rewarding.

Third Link retains 'Recommended' Zenith Investment Partners rating

Zenith research showed that Third Link achieved its objective and outperformed the benchmark over the most recent five-year period. Third Link was placed in the second quartile, ranking 33rd overall, when ranked against 106 other funds over rolling five-year periods. The Fund has maintained volatility below that of the benchmark and median manager since inception, and despite the Fund's growth nature, has shown a greater consistency of outperformance in falling markets over the long term.

“Zenith believes the Fund is a compelling offering due to its access to highly rated fund managers. In addition, given the Fund's charitable aim, we believe it to be an appealing option for socially conscious investors. The rebate of performance fees to the Fund has the potential to have a significant positive impact on the long term return for investors,” said Zenith.

¹ The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned June 2021) referred to in this piece is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only.  This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice.  It is not a specific recommendation to purchase, sell or hold the relevant product(s).  Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs.  Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website.  Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments.  Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.com.au/RegulatoryGuidelines

Three questions for Maddy Buchner OAM, CEO, Little Dreamers

Little Dreamers believes in an equal world for Young Carers. With an estimated one in 10 Australians growing up caring for a family member with a chronic illness, mental illness, disability or addiction, the organisation delivers empowering and proactive support programs to reduce risk factors and improve health, wellbeing and quality of life. 

Tell us a bit about you and Little Dreamers

Hello! I’m Maddy, and I’m the Founder and CEO of Little Dreamers. We’re Australia’s leading Young Carer organisation, supporting young people aged four to 25 who care for a family member with a disability, illness or addiction.

I was 16 when I created and launched Little Dreamers, with the vision of addressing a significant gap in the healthcare system that should never have existed. Who was caring for the Young Carers? My own experience inspired this question as a carer for my brother, who has a range of chronic illnesses, and my mum, now a breast cancer survivor. I wanted to provide the support network that I so desperately needed at the time but didn’t have access to.

Twelve years later, we’re a team of 45 staff and 150 volunteers across VIC, NSW and QLD, supporting more than 5,000 Young Carers nationwide. Little Dreamers programs are co-designed, developed and led by Young Carers for Young Carers, providing wrap-around support that caters to various groups, locations and needs. We’re a fast-moving, proactive organisation driven by our values - hungry, humble and kind – which sit at the core of everything we do.

What support do Little Dreamers provide?

From first-hand experience and research, we know that taking on caring responsibilities can have significant long term impacts on a young person. In 2016, The Australian Child Wellbeing Project identified Young Carers as one of Australia’s most at-risk groups of young people.

Notably, Young Carers often report feeling socially isolated, show signs of poor mental health, and have difficulty transitioning into education and employment. Young Carers are almost twice as likely to be disengaged from school as their peers, and two in three Young Carers experience mental health challenges.

That’s where we come in. Little Dreamers’ range of direct support programs targets five critical areas of risk: identity, health and wellbeing, social connection, education and employment, and financial literacy.

Our programs include Dream Experiences, school holiday respite, mentoring and tutoring, in-school education and training, an online peer support platform, and a tailored personal development program.

Within the wider community, we also focus on raising awareness and advocating for policy change, which has recently seen us engage 15 Young Carer Ambassadors from around Australia.

What will the funding from Third Link help you to achieve?

2020 showed us, more than ever before, the importance of our one-of-a-kind programs. We saw a 218% increase in requests for support at the peak of COVID-19, which has remained consistent ever since. The pandemic compounds Young Carers’ challenges, including reduced access to essential services and support workers, difficulty balancing increased caring responsibilities with remote learning, and heightened unemployment rates and financial stress in the family.

We’re passionate about ensuring Young Carers can experience a positive childhood and access the same opportunities as their peers. Funding from Third Link will take us one step closer to achieving this reality, supporting us to deliver impactful programs that focus on connection, wellbeing and development.

To find out more about Little Dreamers or to make a donation, head to: www.littledreamers.org.au/donate

Pictured above: Young Carers at their Big Dreamers Personal Development and Leadership Program retreat in April 2021. 

Important Information: This information has been issued by Third Link Investment Managers Pty Ltd (Third Link), ABN 31 128 965 702, AFSL 321311 as investment manager of the Third Link Growth Fund (the 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. Bennelong Funds Management Ltd (BFML), ABN 39 111 214 085, AFSL No. 296806 is the Responsible Entity for the Fund. Applications can only be made on the application form dated 1 December 2020 accompanying the Fund Product Disclosure Statement (PDS) dated 1 December 2020. 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. The PDS and AIB can be obtained from www.thirdlink.com.au or by contacting Third Link.

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