Charitable LIC attracting investors

|Financial Observer|Krystine Lumanta


The latest listed investment company (LIC) launched in the marketplace, which offers a unique philanthropic opportunity and taps into prominent Australian fund managers, has gained strong interest from investors and the industry.

The Future Generation Investment Fund aims to provide diversified exposure to Australian equities and will contribute financially to 14 children’s charities, including Kids Helpline and the Lighthouse Foundation.

It lets investors access some of the country’s leading fund managers in a single vehicle and charges zero performance and management fees in order to give 1 per cent of assets per year to the charitie

“The interest so far has been phenomenal. It’s been incredibly positive.” Future Generation Investment Fund director Geoff Wilson told financialobserver.

“We’ve received interest from high net worth investors, family offices and financial advisers. I’ve been amazed at the response.

“Retail investors can’t get access to these funds, and a couple of the funds we have capacity with are closed. All the funds are wholesale and if you were able to invest in them there would be about a 1.3 per cent management fee per annum, with all but one charging a performance fee.”

The Future Generation Investment Fund opened its capital raising offer for up to $200 million on July 7 and is expected to close on September 3.

Investors can subscribe for shares, with one option attaching to each share, at a subscription price o $1.10 per share.

“Whether we raise $100 million or $200 million, the fund will be significantly bigger over time,” Wilson said.

“We’re not going to raise any more than $200 million if it’s oversubscribed. The fund managers have given us a $208 million capacity.”

Participating fund managers are Coopers Investors, Bennelong Australian Equity Partners, Paradice Investment Management, Wilson Asset Management, Eley Griffiths Group, Discovery Asset Management, Smallco Investment Management and Lanyon Investment Management. Also involved are Regal Funds Management, Bennelong Long Short Equity Management, LHC Capital, Optimal Fund Management, Watermark Funds Management and Sandon Capital.

“Future Generation invests in Australia’s future,” Wilson said. “It’s a unique opportunity for investor to give back to our children’s future.

“Effectively, you’re getting the best managers in Australia providing capacity to the company in thei managed funds at no cost – and all the other service providers, such as the share register, directors, lawyers and tax advisers, are donating their time.”