Development Fund - Neil Hannan
I am pleased to provide our Development Fund Board Annual Report for 2025-26.
Summary
The Development Fund has achieved a +37% result on investments since inception plus $3,879 of dividends throughout the year and currently hold funds of $648,178.
As at 29 May 2026, $131,835 of funds invested have earned between 5% - 10% CAGR; $215,383 have earned between 10% - 22% CAGR; and $31,002 have earned 32% CAGR.
The Development Fund last received $125,500 funding from the Club in March 2025, therefore no additional funds during the financial year.
We estimate that our Club will need to contribute at a minimum, between $4-6m by the time a new clubhouse is required in approximately 2035-2042 (assuming council, State and Federal Government combined would provide a grant that match funds raised).
It is estimated that the Club will need to invest an additional $100,000-$200,000 each year in addition to other donations (e.g. bequests) to raise sufficient funds for the clubhouse replacement. The earlier that the Development Fund receives funds over the next few years the greater the benefit due to the benefit of strong investment performance and compounding effects.
The Development Fund board welcomes members (past and previous) to consider a specified donation or bequest to the Club’s Development fund as it will make a significant difference to secure our future and long term viability of our club. All donations to the Development Fund are tax-deductible.
What is the Development Fund?
The Development Fund was established pursuant to an amendment made to the Clubs Constitution and the election of its first board at the 2021 AGM.
The purpose of the Development Fund Board is to protect the long-term financial viability of the Club by investing in or purchasing capital assets in order to:
1. Maximise returns and grow assets
2. Maintain financial strength; and
3. Retain financial flexibility.
Clause 44 of the Clubs Constitution provides that the funds held by the Development Fund can be used towards :-
(a) Purchases of land;
(b) The development or redevelopment of land owned by the Association;
(c) Purchase and trading of publicly listed shares;
(d) Investments which a trustee is authorised to invest in pursuant to the provisions of the Trustee Act 1958;
(e) Replacement, extension or major structural renovation of or to the club house;
(f) For any purpose agreed to by the Development Fund Board and the Board that supports the strategic purposes of the Club.
Investment Framework
The Development Fund has previously adopted the following investment framework:-
This financial year
The Development Fund has met regularly throughout the year as well as exchanging emails re the timing for investment of the cash funds it holds. Throughout the year the Development Fund Board made the decision due the global uncertainty, especially with the USA imposing tariffs on virtually every country and the Middle Eart issues and the spike in oil to retain the funds in cash as buffer against the inevitable decrease in the share market prices such that we would have funds to invest when the markets decease and stabilise.
Investments
The funds managed by the Development Fund Board were invested as at 30 April 2026 follows:-
Since the commencement of the Development fund it has achieved the following results
Capital Annual Gross Return (CAGR)
Dividends
During the year ending the fund received the following dividends in addition to the capital gains above:-
Future Funds
One of the purposes of the Development Fund Board is to ensure the Club will have the funds for a new club house the Development Fund Board has done some preliminary modelling based upon the costs incurred by similar clubs recently in replacing their clubhouse being
(a) Anglesea $5.5M ($2.3M raised by Club) late 2020
(b) Bronte (NS) $24M
(c) Mentone $14.5M
(d) Aspendale $4.5M
(e) Williamstown $14.3M
(f) Sorrento (Vic) $8M
(g) Sorrento (WA) $17.8M
(h) Manly (NSW) $19.85M
In Victoria the Federal and State governments will only jointly contribute directly or indirectly 50% towards a replacement clubhouse (assuming we can secure a grant)
With building costs having increased by 20-25% since 2021 we have assumed that it would cost today between $5,500,000 to $6,000,000 to replace the current clubhouse. The anticipated life of the current clubhouse is to 2035 – 2042. This figure does not include future inflation or future increase in building costs.
We set out below a table of the anticipated cost applying a conservative 3% compounding increase in building costs per year :-
Based upon the above, we estimate the Club will need to be able to contribute a minimum $4 million to $6 million towards a new clubhouse.
We set our below a comparative table that sets out the expected funds available assuming an average return of 6% per annum and an additional annual contribution to the fund of amounts between $100,000 and $200,000 with its compounding effect in order to ensure the club has sufficient funds:-
You will note that the earlier we get the funds the greater benefit the club receives. Also if the government contributes 50% then it provides a significantly higher amount for clubhouse opportunities.
In addition to funds warmly received from the Club, the Development Fund would also like to see direct donations being received into the Fund (for example bequests) and will be attempting to contact older and former members advising them of the fund’s existence and purpose.
The current Development Fund board
The current members of the Board are:-
Development Fund Board Rotation
Georgie Wettenhall will be retiring from the Development Fund Board by rotation and not seeking re-election.
As Grant Edmunds is not standing again for Club Treasurer the new Treasurer will be joining Development Fund Board pursuant to the Clubs Constitution.
We thank both Georgie and Grant for their input and participation as a members of the Development Fund Board.
Yours Sincerely,
Neil Hannan
Development Fund Board Chair