In a bid to tackle Australia’s $128 billion gender inequality problem, Future Generation, the group behind ASX-listed investment companies, Future Generation Australia (ASX: FGX) and Future Generation Global (ASX: FGG), has launched Future Generation Women, a pioneering investment fund aimed at driving gender equality.
Created with the goal of generating financial returns for investors, but also positive social impact, the fund is an innovative model in the investment world. All fund management is handled pro bono, by high-profile female fund managers.
The fund's focus is on advancing economic equality and opportunity for women and their children in Australia. This is done by supporting organisations dedicated to improving women and children's lives, with a particular focus on domestic violence prevention and financial empowerment.
Australia’s ranking on the World Economic Forum’s Global Gender Gap Index for women’s economic participation and opportunity has dropped from 12th in 2006 to 42nd in 2024.
By investing in Future Generation Women, shareholders not only benefit from competitive returns, but also contribute 1% of their investment to not-for-profit organisations working in the gender equality space to help close the gender gap and change harmful attitudes about gender.
Future Generation Women will be an unlisted trust in the Future Generation Group. This group according to the company has more than $1 billion under management and has donated more than $87 million to Australian non-profits since launching 10 years ago. To date, the group has focused on children and youth at risk and youth mental health.
Caroline Gurney, Chief Executive of Future Generation has long been a champion for women having grown up with a giving back mindset. “I think structured giving is the best way to give… So we are sort of making everybody an everyday philanthropist because they can choose out of our Not For Profits which one they would like to give to, or they can give to all of them, or they can leave it to us,” Caroline says.
After successfully proving with Future Generation Australia and Future Generation Global that investors can make money without choosing between financial returns and impact, Caroline saw the opportunity to launch Future Generation Women, a first of its kind in Australia.
Future Generation Women will look to provide investors with exposure to a diversified portfolio of Australian and global equities. This will deliver medium-to-long-term capital growth, and bolster Australia’s full potential through increased economic participation by women.
Caroline is a seasoned professional advocating for gender equality. She has long-standing involvement in philanthropy and working with not-for-profits, including her almost 10-year tenure as a board member of domestic violence prevention organisation Our Watch.
“Future Generation Women represents the next frontier in investing for impact. By investing in fund managers, companies and non-profits that are striving for gender equity, we’re helping to shape a world where women have the opportunities and resources they need to thrive. Our goal is to see Australia unlock its full potential and become the fair, productive and competitive economy it can be,” she says.
Portfolio managers
So far 12 Australian equities-focused female fund managers have joined Future Generation Women:
Key features of Future Generation Women:
• No Management or Performance Fees for Investors: The fund will provide unit holders with a combination of income and capital growth over the medium-to-long term through investments in Australian and global equities, without charging any management or performance fees.
• Philanthropic Commitment: The fund will donate 1% of assets annually, delivering critical funding to non-profits that advance economic equality and opportunity for women and their children in Australia.
• Gender Lens Investing: The fund aims to invest in companies with a strong track record of gender equity, including gender-diverse leadership, equitable pay, and policies that support work-life balance and women's advancement.
• 100% Women-Led Management: The fund will be managed initially by a team of 12 women, who are industry-leading portfolio managers, ensuring diverse investment strategies.
• Change Catalyst: The fund aims to drive change by creating a pathway for women in finance.
Seed investment
The fund has received $100 million in seed investment from Andrew and Nicola Forrest’s Minderoo Foundation.
“Every year, gender inequality continues to cost Australia $128 billion,” Nicola Forrest says. “Future Generation Women is an important and welcomed spotlight on women and their potential in Australia – particularly those in the funds management industry.”
“To truly shift the dial and overcome the outdated norms that hold our entire country back, we need change-makers that are ready to speak up, act and embrace collaboration,” she added.
“Australia’s funds management industry is worth $4.3 trillion, yet only 19% of portfolio managers in Australia are female. This is just one example of the gender inequality that persists in Australia,” says Minderoo Chief Executive John Hartman.
Eligible Investors
The fund is open for investment to wholesale and sophisticated investors only, with a minimum investment amount of $250,000.
Caroline believes everyone — whether male or female — should advocate for change, with gender equality benefiting society. It is not just about supporting women; it is about creating a world where everyone has equal opportunity to succeed.