Dear investor

This issue of the newsletter includes an update on the Fund’s portfolio and its performance for the quarter ended 31 March 2021. I'm also delighted to share that the Fund donated $410.3k to our portfolio charities last quarter, bringing our total donated since inception to $14.256m.

In this issue, we speak with Pat Ryan, chief executive officer of Dismantle, a WA-based charity that works to undo youth disadvantage through hands-on, skills-based mentoring and employment pathways. Third Link has been supporting Dismantle for three years now, so we wanted to share with you how you have helped the organisation to give even more young people a leg up.

Thank you for investing with Third Link and allowing your fees to make a difference.

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 March 2021, the portfolio was invested as below:

There were no key changes to the portfolio over the quarter ending 31 March 2021.

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 March 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.

Three questions for Pat Ryan, CEO, Dismantle

For three years, Third Link has been supporting Dismantle, a WA-based charity that works to undo youth disadvantage through hands-on, skills-based mentoring and employment pathways.

Working with over 400 young people a year, Dismantle is in the business of providing basic but fundamental support and small opportunities for young people, such as their first job.

We asked Pat Ryan, Dismantle’s CEO, about his organisation’s work.

Describe the Dismantle approach and how the organisation came about.

Pat: After many years working with young people in crisis, I was frustrated at the system’s lack of early intervention and preventative support frameworks. By the time these kids walked through my door, the trauma and damage were so deep, the support we could offer felt too little, too late. 

Dismantle was created to provide the preventative framework that was, and is, still missing from our national approach to at-risk young people. We built Dismantle on the belief that we could develop better ways to reach young people before they slipped through the cracks rather than trying to put them back together afterwards.

We can't undo a lifetime of systemic disadvantage. The sad reality is these kids face disproportionately high levels of risk and barriers to opportunity. So, our approach is to give them the tools, support networks and self-confidence to equip them better to face challenges. Time and time again, we see how powerful a small leg up can be in restoring hope and aspiration for their future and to go out and grab it with both hands. 

Self-direction is a key Dismantle differentiator. How do your programs work?

Pat: There's no silver bullet for unravelling disadvantage; every young person has a different story, needs, challenges and aspirations. More than a singular program, Dismantle has built an extended-pathway model of programs and social enterprises that are all centred around the individual and self-empowerment. From the initial outreach programs to rebuilding engagement and eventually into paid employment, our pathway is about incremental growth; providing support, opportunities and experience that give young people a solid foundation to grow from.

A young person’s journey typically starts with our outreach program, BikeRescue, working shoulder to shoulder with our youth professionals for ten weeks to dismantle and rebuild rusty old bikes. Our youth workers, disguised as bike mechanics, use this hands-on approach to break down trust barriers, to help the young person to develop emotional regulation, perseverance, a sense of accomplishment and self-belief, and a raft of other foundational skills.

From here, Dismantle provides paid employment opportunities for around 20% of participants through our two social enterprises ReNew Property Maintenance and BikeDr. We created these programs as vehicles for employment and that crucial first foot in the door to the workforce.

Throughout the young person’s journey with us, we also provide in-house case management, professional development and outbound transition pathways to help them take their next steps out into the workforce. Each young person can be with us for anywhere from three – 18 months, depending on their needs.  

Third Link: How has Third Link helped, and what big plans are on the horizon for Dismantle?

Pat: Third Link’s support has been a game-changer for us, allowing us to leverage opportunities to both grow our core business and create new initiatives for young people.

With Third Link’s help, Dismantle is working towards a sustainable, trade-based financial model through our social enterprises. We are proud to have diversified revenue streams, minimal reliance on government and an expanding client base that includes multi-national organisations. Our current sustainability required philanthropy as a catalyst funding source, but we’re now 70% self-funded.

Unlike NSW and Victoria, WA has no social procurement policy, so the achievements of our two social enterprises, BikeDr. and ReNew Property Maintenance, have all been won on the commercial value and quality service we provide to clients, something we're very proud of. The impact of having a sustainable platform for youth employment has been profound. We've seen incredible transformations in our young people, the shift in confidence and mobility to make choices about their future is something we see almost every day – we're finding that around 70% are successful in finding further employment, education or training pathways on exiting ReNew.

We’re also pursuing significant impact investment opportunities to scale ReNew Property Maintenance, to put more crews in the field and expand our capacity to be eligible for Tier 1 State Government contracts. Our objective is to secure employment for 100% of the young people that come through our programs. 

We're so grateful for Third Link’s ongoing support and thank the network of people that make the Third Link Thrive program possible.

Pictured above: Pat Ryan CEO (centre), Georgina Bromfield, ReNew Supervisor (right) and two youth employees. 

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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