Forrest family’s Minderoo invests $100m in Future Generation Women fund

Billionaire Nicola Forrest and family are behind a massive $100m seed investment in a new a high net worth fund with female-only stock pickers.

Future Generation Women will start with 12 of the nation’s top female stock pickers, says Future Generation CEO Caroline Gurney.

Billionaire Nicola Forrest says she is “aware of her privilege” and has cited “global inequality” as among her reasons for committing $100m from her and estranged husband Andrew’s Minderoo Foundation toward a new unlisted philanthropic investment fund which has an all-women group of stock pickers.

Known as Future Generation Women, the new fund is the latest in a series of philanthropic funds first envisaged by veteran fund manager Geoff Wilson to bring best-in-class investors together to provide free advice to a series of funds which in turn donate 1 per cent of the net assets to selected charities.

“Gender inequality remains a global crisis that holds us all back in the past,” Ms Forrest told The Australian.

“Investments like this show belief and confidence in the future. Everyone, from corporate Australia and government to civil society and philanthropy will benefit from greater diversity and equality, so we all have a responsibility to make gender equality a reality.”

Future Generation Women will start with 12 of the nation’s top female stock pickers, and 1 per cent of its net assets will be donated to female financial empowerment causes.

Newly minted solo billionaire Nicola Forrest, who is known for backing philanthropic initiatives for women, split from high-profile businessman Andrew “Twiggy” Forrest last year after 31 years of marriage. The two made their fortune from iron ore through the now-listed Fortescue, which her husband founded and still chairs.

“One of the most important responsibilities we all have is to give a voice to the voiceless and continue to call out inequality wherever it persists,” Ms Forrest said.

“I am aware of my privilege to be able to do so, but the encouraging reality is this isn’t a solution reserved for the few to take meaningful action on. Be it in a boardroom, factory floor, a playground or at home, everyone with agency, platform or opportunity has a role in supporting female empowerment.”

Its stock pickers include Emma Fisher from Airlie Funds Management, Catherine Allfrey from WaveStone Capital, Katie Hudson from Yarra Capital Management, Jun Bei Liu (formerly Tribeca), Julia Weng at Paradice Investment, Nikki Thomas from Magellan, Vihari Ross from Antipodes, Fleur Wright from Northcape Capital and Minotaur’s Armina Rosenberg who used to manage Mike Cannon-Brookes’ fortune.

Future Generation chief executive Caroline Gurney said Ms Forrest had “championed” the creation of a fund driven by women and for the benefit of female causes, adding it was an investment, not a donation.

“This is not a donation, it needs to have a return for them to invest in the long-term, ”Ms Gurney said. “Women can be better investors over time,” and that this initiative provides them extra capital to prove it while supporting female finance-related causes.

Future Generation Women, backed by Nicola Forrest, will start as a high net worth fund with a minimum investment of $250,000. Picture: Supplied

“We believe that women fund managers are incredibly good investors, but we also wanted to create a pool of capital for women investors, so more women have their finger on the money, and they’re endorsed as solid, long-term investors,” Ms Gurney said.

As to whether creating a women-only stock picker rule for the fund could come across as patronising, given there are now so many highly regarded female stock pickers in Australia, Ms Gurney pointed out females account for only about 15 per cent of the industry.

“For us, it’s about getting them more of a seat at the table,” she said. “They’re already best in class, but we’re highlighting their investment expertise. But also, the other thing that is really important is we will be giving 1 per cent of our net assets to not-for-profits that are focused on economic empowerment and financial literacy for women and their children.”

Ms Forrest and Mr Forrest stepped down as co-chairs of Minderoo earlier this year after their split, but both remain on the board.

Just months before announcing their split last year, the Forrests donated about a fifth of their holdings in Fortescue — the company which put them as a family at second place on The Richest 250 List — to Minderoo, worth $5bn at the time, and making Minderoo one of the largest philanthropic organisations in the world.

Future Generation Women will start as a high net worth fund with a minimum investment of $250,000, but may eventually become a listed investment trust in the same vein as the other two Future Generation funds.

Mr Wilson, who started the Future Generation of companies, said he believed Future Generation Women could surpass $1bn in funds under management.

“Women are better fund managers than men,” Mr Wilson said.

The other philanthropic funds, Future Generation Australia and Future Generation Global have more than $1bn under management in total and have donated more than $87m to Australian non-profits since launching ten years ago.