Philanthropic Investor Fund Lists on ASX
10 September 2015 at 12:14 pm
A major listed investment company, aimed at philanthropic investors to help deliver project funds for young people affected by mental illness, has floated on the Australian Stock Exchange today.
The new Future Generation Global (FGG) company’s joint Chief Executives are former Philanthropy Australia CEO Louise Walsh and Chris Donohue.
FGG is described as Australia’s first internationally focused listed investment company with the dual objectives of providing shareholders with diversified exposure to selected global fund managers and changing the lives of young Australians affected by mental illness.
FGG replicates the concept successfully introduced to Australia in 2014 by entrepreneur Geoff Wilson with the $200 million Future Generation Investment Company.
The share fund opened to philanthropic investors in July, 2015.
FGG sought to raise up to $550 million for the fund, the largest float for an Australian Listed Investment Company (LIC). If reached, the company said it would have been on track to make an annual donation of approximately $5.5 million to Australian Not for Profits focused on youth mental health.
However a statement from the Australian Stock Exchange today said the float had raised $302.1 million in the Initial Public Offering (IPO).
At a listing ceremony in Sydney, FGG Chair and University of Sydney Chancellor, Belinda Hutchinson praised the company’s shareholders.
“Together, Australia’s corporate, investment and philanthropic communities have invested $302.1 million in FGG. We are very grateful to our shareholders who deserve a special thank you for establishing a significant funding base for youth mental health,” Hutchinson said.
Many leading Australian philanthropists, Not for Profits and corporate investors took part in the IPO, including The Smith Family, the Scanlon Foundation, KordaMentha Partners consortium led by Mark Korda and David Winterbottom, and QBE Insurance, which invested $30 million.
FGG Founder and Director Geoff Wilson thanked the participating fund managers, who will manage shareholders’ capital pro bono, foregoing management and performance fees.
“FGG is a perpetual gift from the funds management industry to our future generation,” Wilson said.
“Our fund managers’ outstanding generosity allows FGG to make an annual 1 per cent donation of its net tangible assets to support these Not for Profit focused on Australian youth mental health.”
— FutureGenerationCo (@FutureGenInvest) September 9, 2015
The FGG’s designated charities are beyondblue, Black Dog Institute, Brain & Mind Research Institute, Butterfly Foundation, Headspace, MadCap Social Enterprise, Orygen, The National Centre of Excellence in Youth Mental Health, ReachOut Australia and SANE Australia.
An earlier statement from the FGG said: “FGG is determined 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.”
“FGG’s structure promotes giving as well as wealth creation, and the Company hopes this initiative will inspire the next generation of Australian private and corporate philanthropy.
“The Company charges 0.0 per cent management fees and 0.0 per cent performance fees.
“Fund managers are managing the capital entirely pro-bono so that 1.0 per cent of net assets each year can be donated to Australian Not for Profits committed to young Australians affected by mental health issues.”
The FGG shares are currently trading at $1.06 after an initial high of $1.07.