If you haven't heard of Future Generation Global Investment Co Ltd (ASX: FGG) that's okay.
Listed on the ASX last week, Future Generation Global Investment Company, or FGG for short, is the global equivalent of Future Generation Investment Company Ltd (ASX: FGX). FGX has been listed on the market for a year and has performed well, so far.
What makes FGG special – and FGX for that matter – is its dual mandate.
Unlike a normal fund manager whose sole mandate is to make cold hard profits for shareholders, FGG's objectives is to make as much profit as possible AND every year give 1% of net tangible assets to charities focused on youth mental health.
Confused yet?
As part of its listing process on the ASX, FGG wanted to get $550 million from investors who:
- Wanted to get overseas investment exposure (hence 'global' in its name); and
- Do it in a socially responsible way
Now, you might be thinking: why would I pay FGX to give 1% of my money away? I can do that myself!
I think there's a few important considerations you need to know:
- The board has agreed to work for free
- The fund managers which FGG employs to invest shareholders' money will work pro bono
Still confused?
FGG doesn't invest shareholders' money directly.
It simply distributes the money raised during the IPO to a select group of reputable global fund managers. Some of these fund managers wouldn't ordinarily be accessible by retail investors like you and I, so that's a big positive.
Also, it's worth noting, FGG fell short of its $550 million initial public offer (IPO) target, receiving 'just' $302.1 million.
Here's how the funds were initially invested.
The company has a very experienced management team. Chris Donohoe is CEO and Geoff Wilson, a highly credentialed Australian Listed Investment Company (LIC) specialist, will both help steer FGG's distribution of capital.
Should you buy FGG shares?
During the IPO, I bought shares (and options) in FGG. And I think long-term investors should consider FGG as part of a well-diversified share portfolio.
After all, not only do you get to give back to charity, you'll get global exposure through great fund managers and instant diversification on your money.
