Future Generation Investment Co

About this Fund

Fund Detail

FUND MANAGER Future Generation
INVESTMENT STYLE FGX has been structured to provide a spread between three broad equity strategies: long equities, absolute bias, market neutral and cash.
INVESTMENT PROFILE FGX aims to provide a stream of fully franked dividends; to achieve capital growth; and preserve Shareholder capital.
BENCHMARK S&P/ASX All Ordinaries Accumulation Index
FUND SIZE S&P/ASX All Ordinaries Accumulation Index
NO. OF HOLDINGS 10-20 Managers



The Future Generation Global Investment Company provides:

  • Shareholders with exposure to the best Australian fund managers without paying management or performance fees.
  • Charities with a stream of annual donations. One percent of assets are invested in charities each year. This investment is less than the savings generated from foregone management, performance, service provider, Board and committee fees.
  • Fund managers with a unique opportunity to make a positive difference to Australia's future generations.




Key Features

About the Fund

Future Generation Investment Company Limited (ASX: FGX) provides investors with unprecedented access to leading Australian fund managers in a single investment that also supports Australian charities focused on children and youth at risk.

The FGX investment portfolio has been structured to provide a spread between three broad equity strategies: long equities, absolute bias, market neutral and cash.

The Company's investment objectives are: to provide a stream of fully franked dividends; to achieve capital growth; and preserve Shareholder capital. The Company will seek to provide Shareholders with exposure to a diversified portfolio of Australian equities, with the potential to invest in other asset classes. The Company will invest its capital with selected Australian Fund Managers and may also make direct investments.

The Company's basic charitable objective, together with its Shareholders and the support of the Company's Service Providers, is to make a difference to Australian children by providing financial support to the Designated Charities. By donating a percentage of its net assets each year, the Company will be a source of funding for Australian charities. The Company's focus will be on children's charities, with an emphasis on those that support children at risk. The Company proposes that the annual donation to be an amount equal to 1.0% of the Company's average net tangible assets (NTA) for the relevant financial year.

The Company itself is not a deductible gift recipient (DGR) or otherwise classified as a charity and so will be taxed as any other LIC.

The Company intends to invest in funds managed by Australian Fund Managers who forgo all Management and Performance Fees with respect to funds managed on behalf of the Company. In addition, the Directors have agreed to waive all their director fees and the Company will seek to engage service providers on a pro bono basis.

The aggregate amount of the Forgone Fees will enhance the Company's NTA, the benefit of which will be shared between the Designated Charities and the Shareholders. Where Forgone Fees are greater than the donation amount paid to charities, the balance will be for the benefit of Shareholders.

The Company considers it is very important that both Shareholders and the Designated Charities share the benefit arising from the Forgone Fees. By sharing these benefits, the investment proposition for a Shareholder is attractive. By creating an attractive investment opportunity, the Company will increase the potential amount of capital available to be raised and, in turn, increase the financial support the Company can provide to the Designated Charities.


How we invest your money

The Company expects that initially, capital will be invested with some or all of the Initial Fund Managers. The Company has asked and the Initial Fund Managers have agreed to provide investment capacity to the Company (Fund Manager Capacity) (see Section 2.12 of the Prospectus for details of Fund Manager Capacity for the Initial Fund Managers).

Over time it is expected that at any time there will be between 10 and 20 Fund Managers. It is expected that selected Fund Managers will predominantly manage the Company's money through managed funds that invest in Australian equities and other asset classes.

The aim of the Company is to have a diversified portfolio of investments, through investments with at least 10 selected Australian Fund Managers (when fully invested).

By having a number of different Fund Managers the Company will have access to a range of investment styles and strategies. The Company believes that the diversification of the Portfolio is important in managing and mitigating risk in the Company's Portfolio.

While the Company aims to invest its capital with the Fund Managers (the Initial Fund Managers and any subsequent Fund Managers selected by the Company at the time of investment) as soon as practicable, the exact composition of the investments held will depend on the amount of capital raised, the number and capacity of the Fund Managers available to it from time to time and market conditions at the time of investment. It may take up to six months for the initial capital of the Company to be fully invested.

The Company may invest directly (i.e. not through a Fund Manager) in Securities (or similar investments). The Company may also retain Cash where it is of the view it is prudent to do so.

Permitted Investments

It is the current intention that the Company will invest its capital by purchasing units in some or all of the unlisted managed funds managed by selected Fund Managers.

The Company is permitted to invest with Fund Managers who invest in any asset classes and can utilise any investment style or strategy.

The Company may also invest directly in or hold:

  • Australian and international Securities (both listed and unlisted);
  • derivatives; and
  • Cash or near term Cash securities.