Philip Lowe lands gig in funds management

Jemima Whyte, Senior Reporter at The Australian Financial Review. 

Former Reserve Bank of Australia governor Philip Lowe has been appointed to Geoff Wilson’s $470 million Future Generation Australia charitable funds management vehicle, his first listed board appointment since leaving the central bank last year.

“I’ve always strived to be associated with organisations that enhance the welfare of Australians, so it’s a privilege to work with Future Generation Australia’s shareholders and pro bono fund managers to support our most vulnerable youth,” Dr Lowe, who will be the vehicle’s chairman, said in a statement.

Mike Baird, who has chaired Future Generation Australia since May 2022, will stay on the board. The former NSW premier has been reshuffling his corporate commitments in the past year, flagging in December he will leave his role as HammondCare chief in the second half of this year. In January, he was appointed to the local board of KPMG.

Under the Future Generation model, about $10 million is donated to charities annually for every $1 billion managed. That’s because the fund managers who make the investment decisions, including Paradice, Eley Griffiths, Regal, Sandon and Bennelong, all forgo their management fees. The money is donated to groups including Giant Steps, RAISE Foundation, Youth Off The Streets and Australian Children’s Music Foundation.

As of December 31, the group’s net tangible asset backing per share was $1.20 after tax. Like most listed investment companies, the group’s shares have persistently traded at a discount to its assets. On Tuesday, shares were trading about $1.17 a share.