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A new global equity LIC with a feel-good factor

Posted By Geoff Wilson On In Other investments | No Comments

Access to global markets is often viewed as opaque and too difficult for Australian shareholders to tackle on their own. The opportunities are endless, but how do you know when to make the best investment decisions?

An Australian listed investment company that invests in global markets is an excellent investment opportunity. What’s more, I am pleased to share an exciting investment opportunity and be part of the team delivering it – Future Generation Global Investment Company Limited (FGG).

The fund

FGG is a listed investment company offers investors the opportunity to gain access to Australia’s most prominent global fund managers – a number of whom are closed or not accessible to retail investors – through a single ASX-listed investment vehicle.

Fund managers are managing the capital pro-bono so that 1.0% of net assets each year can be donated to Australian non-profits committed to young Australians affected by mental health issues. This is based on the Future Generation Investment Company (FGX) model launched last year.

The company offers diverse exposure to international equities through a range of different investment styles and strategies employed by its fund managers specialising in global markets.

FGG is seeking to raise up to $550 million for the fund, the largest float for an Australian LIC. If reached, the company would be on track to make an annual donation of approximately $5.5 million to Australian charities focused on youth mental health. This is a perpetual gift from fund managers and shareholders to young Australians suffering through mental illness.

The investment goal

FGG’s investment objective is to provide shareholders with long-term capital growth. By investing in companies globally, the aim is to maximise total return with a combination of capital growth and income, thus allowing fully-franked dividends to be distributed to shareholders provided the company has sufficient profit reserves and franking credits available and it is within prudent business practices.

The fund managers involved with FGG are:

FGG has a highly experienced board that will act pro bono and is chaired by Australian business leader and University of Sydney Chancellor Belinda Hutchinson AM.

The philanthropic goal

FGG is determined to transform youth mental health by driving philanthropic investment in three core areas: helping the community understand the issue; investing in the most effective programs and services; and enabling investment in research and development.

Nearly half (45%) of all Australians will experience a mental health problem over the course of their lives, and one in five will do so in any given year.

Adolescence and young adulthood are an especially critical period, with 75% of mental health problems first appearing before the age of 25. Timely and appropriate help-seeking, especially during adolescence, can reduce the long-term health, personal, economic and social impact of many of these mental health problems.

We hope FGG will be the biggest funder in the youth mental health space, apart from government services.

The designated charities have been selected because of their potential to collectively transform youth mental health in Australia.

You can find out more about the fund here [1].

* Geoff Wilson is founder, director and on the investment committee of FGG.

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.