Magellan Asset Management, Paradice Investment Management and Hunter Hall Investment Management will number among 17 global fund managers that will lend their skills in a new charity listed investment company chaired by former QBE Insurance Group chairman Belinda Hutchinson.
The Future Generation Global Investment Company, founded by Wilson Asset Management’s Geoff Wilson, is eyeing a $550 million raising in what is anticipated to be the largest float for an Australian LIC. The company is aimed at giving investors exposure to global equities, while donating 1 per cent of net tangible assets each year to charities tackling youth mental health issues.
The LIC, which is expected to start trading on the Australian Securities Exchange on September 10, will be marketed towards WAM’s existing shareholders.
“We have 23,000 shareholders in our listed vehicles. About 65 per cent of them are SMSFs (self-managed super funds), which are grossly underweight international equities,” Mr Wilson said.
“So to me this is an incredible opportunity to get exposure to global equities with an extremely good group of fund managers while giving back to charity at the same time,” he said.
There will be 17 global equities fund managers who will provide their expertise pro bono to the company. These include Nikko Asset Management, Cooper Investors, Ellerston Capital and Antipodes Partners – a new boutique set up by former Platinum deputy investment chief Jacob Mitchell.
Other names on the panel include Tribeca Investment Partners, Neuberger Berman Australia, IronBridge Capital Management and Insync Funds Management.
The LIC will be chaired by Ms Hutchinson and will count Magellan distribution general manager Frank Caserotti and advisory group Cato Counsel’s Sue Cato as directors. Karen Penrose, director of Federation Centres, and Sarah Morgan, director of advisory group Grant Samuel, will also become directors of the company.
“This is a wonderful opportunity for Australian shareholders and the business community 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,” Ms Hutchinson said.
The global equities LIC launch follows a similar strategy fund on the domestic market, which was unveiled by Mr Wilson earlier in 2015 and is called the Future Generation Investment Company. The new company will be led by former Philanthropy Australia chief Louise Walsh and Chris Donahue, the former chief executive of fund manager PM Capital.
Mr Wilson said the funds raised from the LIC would be channelled towards community understanding of youth mental health issues, investing in programs and services, and research and development. Some of the designated charities include Beyond Blue, Black Dog Institute, Brain & Mind Research Institute, Butterfly Foundation and Headspace.
The LIC will have a capacity to manage about $790 million of investors’ funds and is expected to open its offer on July 6. The company lodged its prospectus with the corporate regulator on Friday.