Mike Baird takes the chair at Geoff Wilson’s Future Generation Australia fund
The former NSW premier has returned to the markets and is taking the chair of Geoff Wilson’s Future Generation Australia – but won’t rule out a return to politics.
In a world where the concept of doing the right thing can be muddied with greenwashing and box-ticking, it’s clear Mike Baird actually wants to make a difference.
The former NSW premier has just been named as the next chairman of Future Generation Australia, a listed investment company that donates one per cent of its assets to youth focused charities – totalling $27m – since its inception eight years ago.
Mr Baird described Future Generation as a bridge between the finance community and young people in need.
“It makes a significant difference,” said Mr Baird. “There shouldn’t be a disconnect between corporate Australia, the finance sector and the real need in the community. It provides a very clear opportunity for those in the finance sector to make a difference to young kids.”
Future Generation Australia and stablemate Future Generation Global are the brainchildren of high-profile investor Geoff Wilson. The two LICs give shareholders exposure to top fund managers without their accompanying fees and have donated $54m combined to charities.
Mr Baird’s arrival at Future Generation comes as stock markets perch close to bear conditions but he believes he can use his experience as a banker, then NSW treasurer, as well as premier to help increase the amount of money the LIC can donate to charities.
“I would hope the things that I have learned, done, been and seen can be useful,” he told The Australian. “The more it’s promoted and understood, the more potential for growth. It’s such a fantastic idea.”
To date, Future Generation Australia has donated to charities such as Youth Off The Streets, Kids Helpline, and Lighthouse Foundation, while Future Generation Global has invested more than $26m in a range of charities since 2016 and focuses on promoting wellbeing and preventing the onset of mental ill-health in young Australians.
Mr Baird will step down as chairman of the federal government’s Australian Business Growth Fund in order to take the Future Generation Australia position.
“I’ve spoken to the new government about that and they totally understand why I’d be attracted to do this. It’s compelling. I spent time with disadvantaged youth in public life and have a chance to pick up some of that work in this role.”
As to whether the wipe-out of the Liberal Party in the latest election has made Mr Baird want to resume his political life, the former premier said: “Never say never … Joe Biden became president at 78 so there’s a long way to go. I’ve made my contribution in public life and there are other ways to contribute now, of which this is one.”
Post election, Mr Baird, whose father was also a senior Liberal figure, said the party needed to reflect on where it went wrong.
“I think there are lessons. My encouragement would be to observe, and dwell before you respond. I certainly think there is a good period of reflection to be had. There are many things to go through, and it’s much more complicated than you need to go left or right,” he said.
For now, Mr Baird has put politics to the side and is focused on other ways of contributing to the community. He is currently the chief executive of aged care group HammondCare.
As companies increasingly consider their social licence to operate and as the importance of ESG rises in corporate Australia, he sees even more need for people to have passion and connection. As he puts it, people and companies do the right thing because they see need, rather than because they feel like they should.
“The risk is it (ESG) becomes tokenistic, ritualistic and head-based, rather than genuinely from the heart,” Mr Baird said.
“If I can get the funds sector to connect into the need and opportunity then rather than ‘we must do the right thing’, we connect the heart,” he added.
Mr Wilson said he believed – despite volatile market conditions – the new chairman could help increase the amount of money raised for charity.
“There is a broader opportunity to increase the space,” said Mr Wilson. “It’s about making sure the corporate sector has the opportunity to support the not-for-profits. With Mike there it opens up potential opportunities.”
Mr Wilson also shrugged off concerns that volatile market conditions and rising inflation and interest rates will lead to a smaller pot of money to invest in charities.
“We are very close to the bear market,” he admits, before adding that the fund managers who contribute fee-free to the Future Generation funds should be performing above market. “It’s not only the underlying performance of the of the fund managers, but it’ll also be the opportunities to grow by expansion.”
That could include sectors such as property or fixed interest.
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