Prudent investment decisions, made by Equity Trustees over the course of 66 years, have helped the Royal Children's Hospital, Melbourne to improve the lives of sick children.

In 1960, hospital care for children in Victoria was unrecognisable compared to today. Medicare was 24 years away from fruition. An infant vaccine for rotavirus, a severe form of gastro, was decades away and infant mortality rates were disturbingly high.

Yet, even at the time, financier Harry Moss had the foresight to understand that children’s healthcare needed greater investment so that hospitals could improve the lives of sick kids across Melbourne. So in 1960, when Harry died, he left £1 million Sterling in his Will to set up the Harry Lyon Moss Trust. The perpetual charitable trust, managed by Equity Trustees, was created solely to support the work of the Royal Children’s Hospital (RCH) based in Melbourne.

Harry’s desire to change the lives of children for the better soon became a reality, supported by sound investment decisions made by Equity Trustees.

It has been over 66 years since Harry passed away. Today, the trust has grown in worth to $113 million, with around $98 million in additional funds having been distributed to the RCH for various causes, from investments in new technology to medical research and development, over this period.

Investment Specialist at Equity Trustees, Grant Mundell, says the fund has been above to not achieve the objectives of the Trust because of consistent application of Equity Trustee’s investment philosophy to maintain the real value of capital while providing clients and beneficiaries with a tax-effective income stream. 

Equity Trustees is a specialist not-for-profit investment manager and manages funds for over 1200 charitable trusts including the Harry Lyon Moss Trust. “Over the years, it’s been really important for us to make prudent investment decisions by aligning the initial intention of the trust (to help improve the lives of sick children) with the guiding principles of the Royal Children's Hospital,” says Grant.

“In doing so, we’ve made sustainable and impactful investment choices that have seen the trust fund grow significantly over the years, in line with the Trust’s objectives.”

Grant explains that investment return requirements often revolve around an ‘inflation-plus’ target to ensure that the capital of the trust is growing in-line with cost-of-living increases. On top of this, investments may produce an additional income stream to be paid out to beneficiaries on a regular basis.

“We have preserved and grown the real value of Harry’s initial investment over time, so that the funds can have a long lasting impact.”

For a perpetual charitable trust like the Harry Lyon Moss Trust, this has proven essential. “The RCH has received an additional, regular source of income that it has used to fund its many programs, grow the organisation, and invest in much-needed capital works.”

Grant says income generation has been especially important for a charity like the RCH, as non-profit fundraising can be quite tough at various times in the economic cycle. “Through our expert fund management skills, we have diversified the Trust’s income generation by aiming to maximise the income stream of the Moss Trust and generate a sustainable and growing income stream over the long-term.”

“We have preserved and grown the real value of Harry’s initial investment over time so that the funds can have a long-lasting impact.”

Grant says it’s been an honour for Equity Trustees to play such a vital role in ensuring the long-term financial sustainability of such a meaningful charity as RCH. He highlights the importance of charitable entities utilising the skills of a professional investment manager to ensure that funds are invested appropriately to meet the objectives of that Trust. “Strong risk management, investment expertise and experience, as well as the ability to monitor performance, are all requirements to ensure that the funds are invested prudently”.

“It’s been an absolute privilege to steward the Harry Lyon Moss Trust and grow Harry’s original investment. The work that the RCH does for Australian children is so invaluable. We look forward to continuing to work in partnership with the RCH for many years to come.”

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