The Australian equities market experienced significant volatility over the first quarter of 2025, reflecting both global and domestic macroeconomic influences. Following the market rally in late 2024 driven by optimism around the Trump presidency, ongoing trade tensions and tariff sanctions have since weighed on investor sentiment, leading to sharp fluctuations. Against this backdrop, the Third Link Growth Fund returned -4.83% over the March 2025 quarter, underperforming the S&P/ASX 300 Accumulation Index, which returned -3.79% over the same period.
February’s Australian reporting season proved to be one of the most volatile in recent history, presenting challenges but also opportunities for our underlying fund managers. The heightened market dislocation has allowed them to identify and invest in quality companies at more reasonable valuations.
This quarter, the Fund welcomed Montgomery Investment Partners and their Australian Eagle Equities Fund as a new pro bono manager.
As of 31 March 2025, the Fund’s size was $156.4m. All fees received from managing the Third Link Growth Fund, net of fund expenses, continue to be donated to the charitable sector. Since inception, the Fund has donated $23m to the charities we support, with $426kcontributed in the last quarter.
We remain committed to delivering strong investment performance while driving meaningful social impact through the Third Link Growth Fund. As the Fund asset size grows, so too does the amount donated to charities.
In this quarter's newsletter, we visit a new charity partner, Go Gentle Australia to explore how their partnership with Third Link is making a powerful impact in driving social change.
Thank you for continuing to make a difference in the community through your investment.
Regards,
Chris Cuffe AO
Founding Director and Portfolio Manager Third Link Investment Managers Pty Limited
The objective of the Third Link Growth 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 2025, the portfolio was invested as below:
AUSTRALIAN EQUITIES
General
Frank Macindoe IMA
15.4%
Auscap Ex-20 Australian Equities Fund
11.2%
DNR Capital Australian Equities High Conviction Fund
7.9%
Cooper Investors Australian Equities Fund
7.2%
Australian Eagle Equities Fund
6.3%
ECP Growth Companies Fund
6.2%
Eley Griffiths Group Mid Cap Fund Class A
6.2%
L1 Capital Catalyst Fund
6.1%
Greencape Wholesale High Conviction Fund
5.2%
Total – General
71.7%
Small Caps
1851 Emerging Companies Fund
8.3%
Lennox Capital Australian Small Companies Fund
7.1%
Eiger Small Companies Fund
4.4%
Pengana Emerging Companies Fund
4.4%
Total – Small Caps
24.2%
Total – Australian Equities
95.9%
CASH & CASH EQUIVALENTS
Custody Account & Other
4.1%
Total – Cash & Cash Equivalents
4.1%
TOTAL
100.0%
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.
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 2025 the Fund performance relative to the Fund benchmark was as below:
THREE MONTHS
SIX MONTHS
ONE YEAR
THREE YEARS
FIVE YEARS
TEN YEARS
SINCE FEBRUARY 2012²
Third Link Growth Fund
-4.8%
-6.2%
-4.3%
+0.1% pa
+10.2% pa
+6.5 pa
+9.4% pa
S&P/ASX 300 Accumulation Index¹
-1.3%
-2.1%
+4.3%
+5.9% pa
+13.6% pa
+7.3% pa
+9.3% pa
Fund performance relative to benchmark
-3.5%
-4.1%
-8.5%
-5.7% pa
-3.4% pa
-0.8% pa
+0.1% pa
Returns are calculated after fees have been deducted and assuming reinvestment of distributions. 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.
Investors should be aware that past performance is not indicative of future performance. Returns can be volatile, reflecting rises and falls in the value of underlying investments.
Investor Webinar
In our recent investor webinar, Chris Cuffe was joined by two of our underlying fund managers, Chris Stott, Founder and Chief Investment Officer at 1851 Capital, and Tim Carleton, Founder and Portfolio Manager at Auscap Asset Management. This was a fantastic opportunity to hear directly from the experts driving investment outcomes for the Fund, gain valuable insights into their investment strategies, and engage with them through Q&A. If you missed the live session, you can watch a recording here.
The Inside Network Investment Leaders Conference
Chris joined a panel exploring the emerging investment themes for 2025, unpacking the key forces over the next 12 months with Torty Howard, Co-CEO at Escala Partners and Chris Lioutas, Co-CEO and CIO at Genium Investment Partners at the Inside Network's Investment Leaders Conference in March 2024.
Chris Cuffe on investing, philanthropy and lessons from four decades
Capital Brief is a business and politics focused publication that views the world through a new economy lens. They recently interviewed Chris on investing, philanthropy, and lessons learnt across four decades. Read the article here.
How does philanthropy fit into financial advice?
We are grateful to IFA for highlighting the growing role of philanthropy in financial advice and featuring the Third Link Growth Fund as a leading example of how investment can be used to create meaningful social impact. The article explores how advisers can help clients align their financial strategies with their values, particularly in the context of intergenerational wealth transfer. Read full article here.
Go Gentle Australia
While voluntary assisted dying is a deeply personal topic, we’re honoured to welcome Go Gentle Australia as a new charity partner, an organisation advocating for compassion, dignity, and choice at life’s end.
David Levitt knew he would be one of the first to apply for Voluntary Assisted Dying (VAD) when it became legal in Queensland.
The cancer in his brain was spreading quickly. As director of General Paediatrics and Dermatology at the Queensland Children’s Hospital he knewwhat his end of life could bring. There would be seizures, hallucinations and breathing problems. Eventually, he would be completely dependent on others, unable to speak, eat, or move.
Pauline McGrath, David’s wife, says there were three things he wanted at the end of his life. “He wanted control. He wanted not to die in pain, and he wanted to die at home surrounded by his family”.
In April 2023, David swallowed the VAD substance with Pauline and their daughters Claire 26 and Hannah 23 by his side. “We laid him in bed and we talked to him about how loved he was." As David drifted into a deep sleep, Pauline lay with her head on his chest and for the next half-hour listened until his heartbeat fell silent. “It was quiet and calm, and it was incredibly peaceful.”
Since 2016, Go Gentle Australia, founded by broadcaster Andrew Denton, has led the campaign to ensure all terminally ill people have the choice of a peaceful death like David’s. In just seven years, all states and the ACT have introduced VAD laws. Only the Northern Territory is yet to act.
With 98 per cent of Australians now living where VAD is a legal choice, Go Gentle is focused on making sure the NT joins the rest of the country and that VAD services deliver equitable, high-quality care.
Important Information: This information has been issued by Third Link Investment Managers Pty Ltd (Third Link), ABN 31 128 965 702, AFSL 321611 as investment manager of the Third Link Growth Fund (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. Fundhost Ltd ABN 69 092 517 087, AFSL No. 233045 is the Responsible Entity for the Fund. Applications can only be made on the application form dated 30 June 2022 accompanying the Fund Product Disclosure Statement (PDS) dated 30 June 2022. 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.
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