Distributions made this year by Perpetual’s charitable trusts are expected to remain on a par with 2008, despite the Australian financial markets experiencing declines in excess of 40 per cent.
According to Perpetual’s general manager of philanthropy, Andrew Thomas, the fund manager’s conservative investment approach should allow it to provide funding to charities comparable to that of last year.
“The most important prerequisite for a charitable trust or a prescribed private fund (PPF) is to ensure a consistent and growing level of income in all market conditions,” he says.
“Perpetual’s investment strategy takes into account the infinite time horizon and the ability for returns to be increased through the use of franking credits.”
Perpetual manages more than 400 charitable trusts, with more than $1 billion in funds under administration.
The firm has increased the scope of projects available for funding in 2009, and is calling for charities to submit their funding applications. Each year it distributes more than $40 million to approximately 200 charities around Australia.
These organisations cover a broad cross section of the social economy, including: biomedical research; the arts; aged care; youth; and indigenous health.