Finance and Investments
Mt Barney Lodge
The Numbers for 2024
$228m
total corpus
$10m
approved in FY24
$224.6m
distributed since inception
The Board extend their appreciation to Trent Duvall, Andrew Sykes and KPMG who provide their audit services to VFFF and Vincent Fairfax Ethical Leadership Foundation (VFELF) on an honorary basis.
Using the Yale Distribution Model, Directors set a granting target of $11.4m for VFFF in 2024/25.
| VFFF | VFELF | |||
|---|---|---|---|---|
| 2023/24 $m | 2022/23 $m | 2023/24 $m | 2022/23 $m | |
| Corpus | 228.0 | 221.1 | 8.09 | 6.2 |
| Grants approved | 10.0 | 10.2 | 0.4 | 0.85 |
| Cumulative grants | 224.6 | 214.6 | 9.3 | 8.9 |
VFFF Corpus and Grants
*Note: Historical grants represent total cash distributions in that year. From FY20 onwards the amount represents new grants approved in that year.
Investment Strategy
The Corpus of VFFF and VFELF is invested in a diversified portfolio overseen by Cambooya Services Pty Limited assisted by the Cambooya Investment Committee.
VFFF has restructured its investment portfolio into two components. The Granting and Operations component is invested in liquid investments to meet granting and operating expenses and targets a return of 6.5% plus franking credit refunds. The Growth component is invested in higher returning illiquid investments and targets a 12% return. Both components met their targets over the seven year period to 30 June 2024.
VFFF's goal is to have 5% of Corpus invested in impact investments. These are defined as investments that generate measurable social impact alongside financial returns and are expected to yield a below-market level of return for the risk taken. These investments are viewed as an extension of the philanthropic work of VFFF.
Impact Investments committed at 30 June 2024 are:
| Name | Amount Invested/ Committed $m | Inception | Asset Class | Social and Financial Returns to Date |
|---|---|---|---|---|
| HOPE Housing Investment Trust | 1.5 | August 2023 | Property | 6.6% p.a. Investment in a diversified portfolio of residential property investments from shared equity contributions in homes purchased by essential workers. |
| White Box Enterprises – Bangalow | 2.0 | July 2021 | Credit | 3.5% p.a. Funding for the purchase of a property to provide long-term premises to the Lighthouse Laundry business. |
| Family Place | 0.5 | May 2021 | Property | 3.8% p.a. Purchase of a property to provide long-term premises to the The Family Place, a community centre supporting families in Logan, Queensland |
| Family Place Renovations | 2.2 | June 2023 | Property | Renovations to the Family Place |
| Loan to the Crusader Union of Australia | 3.0 | September 2019 | Credit | 4.3% p.a. Loan to help fund the development of the Crusader's campsite facilities in Lake Macquarie, NSW. CRU Camps is the largest provider of Christian holiday camps in NSW, welcoming over 4000 campers each year to over 75 camps |
| Yume Group Holdings Pty Ltd | 0.8 | November 2014 | Private Equity (Venture Capital) | This is an early-stage investment in a food technology platform. Yume has produced social returns including 10.1m kilograms of food redistributed to businesses and charities, 38.7m kilograms of Co2-equivelant embedded in food redistributed and 2.2bn litres of embedded water in the food redistributed. |
| Brightlight – Urban Villager | 1.5 | October 2024 | Property | Investment in the development of townhouses targeting frontline workers and young families in the Newcastle, Hunter and Central Coast growth corridor under a shared equity program. |
Social Impact Investment Highlight: Brightlight and Urban Villager
Finding a solution to the unprecedented housing stress facing regional towns will require leadership at all levels. In many communities there is inadequate supply, and when additional supply becomes available, it often does not respond to the needs of community with the right mix of dwellings at an affordable price point.
VFFF worked with impact investment firm Brightlight and development manager, Urban Villager, to commit $1.5m to the Brightlight Shared Equity Housing Trust. This vehicle provides finance for the development of 11 affordable townhouses in Marks Point NSW, for frontline workers and young families in the Newcastle, Hunter and Central Coast growth corridor.
This model offers an innovative solution for frontline workers who can service a mortgage but are unable to save a home deposit. The townhouses will be sold at 80% of market value, with the owner provided up to ten years to pay out the developer's equity stake.
The model is attractive to VFFF given its scalability. Capital will be returned when the project is completed. VFFF may recycle the capital into new projects focused on addressing the housing affordability crisis in other regional communities.
VFFF is supporting a model that may be part of the housing solution and has potential to be scaled and benefit other regional communities.
Co-founder and CEO of Urban Villager, Alice Joy, plays a leadership role in her community. With many of her peers locked out of the housing market, Alice wanted to contribute to the solution. Alice and the team at Urban Villager hope that more small, accessible, people-focused housing projects that utilise a shared equity model will be available for regional communities in the future.