Australian charity shackled amid sharp value drop of Fortescue Metals

A charity shackled to the fortunes of Andrew Forrest's Fortescue Metals which has seen almost 50 percent of its value plummet in the past 12 months, in tandem with the decline value of the magnates Australian iron ore company.

The Minderoo Foundation, the umbrella body for Forrest's charities, has watched its wealth fall from 103 million Australian dollars (74.9 million U.S. dollars) to 53 million Australian dollars (38.55 million U.S. dollars) in 12 months, as some 40 percent of the charity's investments are in the form of shares in Fortescue Metals, Australia's national broadcaster reported on Monday.

The slump in iron ore price has seen Fortescue Metals' shares fall from a high of 4.80 Australian dollars (3.49 U.S. dollars) about 12 months ago to 1.66 Australian dollars (1.21 U.S. dollars) at Monday's opening.

University of New South Wales business school charity specialist Fiona Martin told the Australian Broadcasting Corporation (ABC) on Monday it was risky for any charity to put a large portion of investment into one company.

"To have the majority of its assets in one type of form, one type of share, that's unusual, that's risky for any business, and particularly for any charity," Martin said.

Forrest is reportedly one of Australia's most generous philanthropists, with charities set up to combat disadvantage faced by Indigenous Australians as well as and human trafficking.

Forrest said the stake in Fortescue Metals remained a sound investment and his charity could weather short-term price drops.

"We all wear belts. When we get a little fat we can let them out, when we're going through some lean times we can tuck them in, " Forrest said. "I mean, we are going to give away the money we receive like we have pledged and we're delighted to do that."

"Now if that lessens off all our recipients understand that." Endi