Future Generation Women: Minderoo Foundation commits $100m to kickstart investment fund driving equality push

Gender inequality is a $128 billion issue for Australia, but Nicola Forrest and an army of high-profile, top stock-picking women are tackling it head-on with a groundbreaking all-woman investment fund.

The Future Generation group launched the Future Generation Women investment trust on Wednesday to champion gender equality and economic prosperity for Australian women and their children.

The fund will be seeded with $100 million from the Minderoo Foundation — the philanthropic arm Ms Forrest founded with her ex-husband Andrew ‘Twiggy’ Forrest — in order to provide an “important spotlight on women and their potential in Australia”, she says.

“Every year, gender inequality continues to cost Australia $128 billion,” Ms Forrest said.

“To truly shift the dial and overcome the outdated norms that hold our entire country back, we need change-makers that are ready to speak up, act and embrace collaboration.”

Women will also guide the fund, with a trove of 12 leading investment portfolio managers, selected by committee, to provide their investment management expertise on a pro bono basis.

As well as generating capital for investors, the fund seeks to create pathways for women in finance.

The gendered focus stemmed from studies that found women portfolio managers routinely missed out on promotions to their male counterparts — two-thirds (67 per cent) of all industry promotions to go men.

This is despite investment research showing these same women — who account for just 19 per cent of their workforce cohort in Australia — routinely outperformed men over the long-term by adopting more diversified and risk-conscious investment strategies.

Future Generation Women advisory member Elana Rubin said investing in women fund managers will address “barriers to women participating in the funds management industry and highlight the capability within the sector”.

“The expertise of our all-women investment team is at the core of our mission: to prove that when women are in charge of their financial destiny, we all rise together,” Ms Rubin said.

Future Generation chief executive Caroline Gurney said the fund represents “the next frontier of investing for impact”.

“By investing in fund managers, companies and non-profits that are striving for gender equity, we’re helping to shape a world where women have the opportunities and resources they need to thrive,” Ms Gurney said.

“Our goal is to see Australia unlock its full potential and become the fair, productive and competitive economy it can be.”

The Future Generation Women fund will also direct one per cent of its assets each year to not-for-profit organisations that advance economic equality and opportunity for women and their children in Australia.

It will also invest in companies with a strong track record of gender equity — including diverse leadership, equitable pay, and policies that support work-life balance and the advancement of women.

Minderoo Foundation CEO John Hartman said while the fund was a welcome introduction and a prime example of “capital for good”, there was “still a long way to go for the full potential of women to be realised”.

“A fair future isn’t possible when half the world’s population is left behind,” he said, adding that it was everyone’s responsibility “to be gender equality champions”.

“Minderoo’s goal today was to show up and boldly support the positive action Future Generation is taking to make equitable inclusion a priority,” Mr Hartman continued.

“Big issues require big collaboration. Only together can we overcome the outdated social norms and barriers that ultimately hold all, especially women and girls, back.”