Australian Charity Case Studies

Meeting yield requirements without compromising ESG  

A registered Australian Charity focused on habitat preservation is seeking to generate income in addition to donor capital.  The charity holds a reserve of cash that is intermittently invested in term deposits.  The investment policy is subject to a very specific ESG screening and will not invest in any enterprise linked to threatened biodiversity or habitat destruction.

Using FIIG’s Direct Bond Service the treasurer can select individual investments in line with the charities’s ESG policy that deliver a meaningfully increased yield compared to their at-call and Term Deposit investments in bonds that sit within acceptable risk limits.

De-risking a portfolio and maintaining yield 

An Australian Charity with increasing service demand is seeking additional yield on retained donor capital and has reluctantly resorted to equities investment.  The board of the charity is uncomfortable with the risk profile of the investment strategy and has ordered a review to focus on lower risk assets but is keen to ensure the investments continue to be held in the charity’s name.

 The Charity could invest in the MIPS Income Plus program to achieve equity like returns with a significant reduction in risk.  Further, the charity would be substantially more diversified and has the potential to reduce transaction costs significantly.  The charity would remain the direct owner of all invested assets.