SISTER ACT: Nicola Forrest drops $100 million into an investment fund to back women

A new investment fund focused on and run by women has been kick-started with $100 million Western Australian philanthropist Nicola Forrest.

The funds have come from the Minderoo Foundation, which Forrest established with her ex-husband, mining billionaire Andrew Forrest. The philanthropic fund has gender equality is a priority focus.

Future Generation Women (FGW) will be an unlisted trust in the Future Generation group, the $1 billion investment and social impact portfolio ,which includes listed investment companies Future Generation Australia (ASX: FGX) and Future Generation Global (ASX: FGG).

The fund will bring a gender lens into investment decisions, looking a issues such as leadership diversity, the gender pay gap, family-friendly policies and the advancement of women. The fund will also direct 1% of its assets annually to not-for-profit organisations that advance economic equality and opportunity for Australian women and children.

Nicola Forrest said gender inequality costs the nation $128 billion annually.

“Future Generation Women is an important and welcomed spotlight on women and their potential in Australia – particularly those in the funds management industry,” she said.

“To truly shift the dial and overcome the outdated norms that hold our entire country back, we need changemakers that are ready to speak up, act and embrace collaboration. This is why we’re proud to be standing alongside Future Generation as it champions investment in women.”

A Who’s Who of Australian female portfolio managers will be making the investment decisions, including Catherine Allfrey from WaveStone Capital, Tribeca’s Jun Bei Liu, and Magellan’s Nikki Thomas.

The 12 portfolio managers will offer their expertise pro bono (for free). Service providers to the fund, including Citigroup, Equity Trustees and Boardroom – have also waived their usual fees.

While women are set to inherit nearly two-thirds (65%) of $5 trillion from the country’s intergenerational wealth transfer over the next decade, just 19% of portfolio managers in Australia are women. Nonetheless, they outperform blokes when it comes to long-term investment returns.

One of the goals for Future Generation Women is to lift female participation, creating a pathway for women in finance.

RBA board member and Australian Business Growth Fund chair Elana Rubin will lead FGW’s advisory group.

“By investing in leading women fund managers, our capital will drive investment returns, help address barriers to women participating in the funds management industry and highlight the capability within the sector,” she said.

“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.”

The fund won’t charge investors management or performance fees, delivering a combination of income and capital growth over the medium-to-long term from investments in Australian and global equities.

Future Generation founder Geoff Wilson said the fund is now open for investors, with a minimum investment of $250,000.

“We are excited to be launching Australia’s first philanthropic women’s investment fund, utilising the Future Generation model which has proven that investors can do well while doing good,” he said.

“The waiving of all fees by our fund managers and service providers ensures that investor capital is put to work—both in growing wealth for our investors and in advancing the cause of gender equity.”

Wholesale investors who apply before March 31, 2025 will be named as founding investors of Future Generation Women.