The two Geoff Wilson-chaired charitable listed investment companies backed by billionaires Solomon Lew, Andrew Forrest, Alex Waislitz and the Smorgon family plan to grow to be the second-biggest donors in the local not-for-profit sector as they expand their assets to be worth more than $3 billion over the next decade.
The Future Generation Global Company and the Future Generation Investment Company, which give shareholders exposure to top local and international fund managers who donate part of their assets to charities, will today reveal a total combined donation of $4.7 million to Australian youth and children’s charities for the 12 months to June 30.
FGG, which listed on the ASX in September, will deliver its inaugural annual donation of $2.4m to Australian charities focused on children and youth mental health.
FGIC will provide $2.29m to Australian charities focused on children and youth at risk following an inaugural donation of $1.6m in 2015.
The chief executive of both entities, former Philanthropy Australia CEO Louise Walsh, said the vision of both groups was to become the second-biggest private sector funder in the Australian not-for-profit sector after the giant Paul Ramsay Foundation.
“We would absolutely be hoping within 10 years that the combined companies would be worth $3bn. So they will be giving away $30m a year. That is not just a dream, that is something we have a strategy for … It is a big vision but it is realistic,’’ Ms Walsh said.
Like the FGIC, the FGG donates 1 per cent of net tangible assets each year to charities and the fund managers it employs waive all fees for investors.
The 22 charities benefiting from the donations include Beyond Blue, Black Dog Institute, Brain & Mind Research Institute, Butterfly Foundation, Headspace and ReachOut Australia.
“The Future Generation model is incredibly exciting for Butterfly in our quest, like all non-profits, to become financially sustainable,’’ said David Murray, former chairman of the Future Fund and chairman of the Butterfly Foundation for Eating Disorders.
“This unique opportunity to secure ongoing funding from FGG, assuming we meet our agreed outcomes, enables Butterfly to introduce an intensive outpatient program for young people with eating disorders. Until now, this program was only available to wealthy Australians who could afford to travel to the United States for the treatment.’’
Mr Wilson, a funds management industry legend, said the strategy of both companies was to grow their capital bases. At June 30 they were worth a combined $556m, excluding the one-for-one options that are available to investors in both vehicles.
“Take FGIC, we started in September 2014 with $200m and the assets were worth $266m at June 30. It is a combination of expanding the capital base and growing the corpus by the performance of the underlying managers. We are growing the assets with underlying performance and raising more money as we go along,’’ he said.