Please enjoy this Q&A interview with Lee Hopperton, our new Future Generation Chief Investment Officer.
You have a wealth of investment experience, having worked at the likes of Macquarie and JP Morgan. What is it about becoming Chief Investment Officer (CIO) at Future Generation that excites you?
I have always had a passion for investing and markets, but what really interests me here is the opportunity to make a tangible difference in people’s lives – both financially and socially.
Future Generation has this amazing, unique model that I have admired for years. I can’t think of any other investment that allows you to have such a positive impact in your community, without taking a hit to your hip pocket. In fact, it’s not just that you aren’t taking a hit to your hip pocket; it’s that you are actually getting a boost to your hip pocket! That’s a combination I think more people should be jumping on.
Future Generation also has such a high-calibre team – from its chairs, Philip Lowe and Jennifer Westacott, to its Board Directors, to its Investment Committee members, to its incredible roster of boutique fund managers. They all donate their skills and services for free, and I’m excited to work with such a talented and passionate team.
On top of that, I have been involved in some fantastic not-for-profit initiatives in the past. I have served as treasurer for a children’s charity in Australia, so I really understand how important reliable funding is and how much good it can do. I am motivated by the fact that Future Generation has already invested almost $90 million in long-term funding to support youth at risk and youth mental health. Having three children myself, I understand how important these issues are, and I am eager to help drive that contribution even higher.
What will the role of CIO actually involve?
Generally speaking, I will be working with the Future Generation CEO and team to ensure that more people understand just how powerful the model is – not just as a way to save and generate income, but as a way to make a real social impact. We will continue to raise awareness, get more investors on board, make sure that our investment strategy is on point, and maximise the benefits for our investors.
In particular, I will be working closely with the Future Generation Australia and Future Generation Global Investment Committees, which include experts from JANA, Morningstar and Lonsec, as well as leading fund managers. I’ll then make sure that our investment strategy is well communicated to brokers, financial planners and high net worth investors.
I am lucky in that my most recent job was running the private wealth business at Perpetual Asset Management, where I built a substantial network of advisers and family offices. I am confident that I can strengthen Future Generation’s relationships with these important stakeholders and convince them of the benefits of the model.
Could you tell us a little more about your background? What makes you the right person for the job?
I spent the first 16 years of my career at Macquarie and JP Morgan as an equities analyst in Sydney, and then I moved to London where I worked on the institutional equities desk. I was fortunate enough to run the Asia Pacific trading desk at JP Morgan in London for a few years, and then I moved to Asia where I managed the Korean equities floor.
More than ten years ago, my family and I returned to Australia where I’ve worn a few different hats: CEO of a boutique equities manager, and more recently, running the private wealth business at Perpetual Asset Management, including overseeing listed funds. But I have also had a lot of experience on the not-for-profit side – I was a board member and treasurer of an early intervention children’s charity in New South Wales for many years.
I believe my experience across both the financial world and social impact initiatives gives me a unique perspective and I am genuinely excited to bring these skills to Future Generation.
What will success look like to you?
If we can get more people involved in the Future Generation movement, it will really help us to narrow the Future Generation share price discount to net tangible assets (NTA). This is a top priority for the entire Future Generation team. I will feel like we have done our job when the share price more accurately reflects the value of these two great companies.
What is the best investment advice you have ever received?
Can I give you two bits of advice? The first is that it is all about patience and taking a long-term horizon. The second is to only invest in something you understand and believe in!
