Despite being a growing reservoir of funds under management, this critically important pool of capital is confronting mounting problems collating and disseminating key data in a timely manner.
The ratings house is pinning its growth strategy on a revamped methodology that increases the emphasis on governance to 25 per cent – a timely move considering APRA’s proposed reforms.
Geoff Wilson’s new LIC attracts institutional money too
Chris Donohoe
The Future Generation Global Investment Company, Geoff Wilson’s latest listed investment vehicle which has a strong philanthropic bent and attracted enormous industry interest, last week tied up a major institutional investor. The fund’s offer closes this Friday (August 28) – download prospectus here.
The Australian arm of insurance giant QBE has invested $30 million into the LIC, which is, fundamentally, a retail offering. Because of its unique low-fee arrangement, which results in donating 1 per cent of assets to organisations involved with young people and mental illness, the offer also makes sense at an institutional level. Several super funds are known to be considering following suit prior to the August 28 deadline.
Chris Donohoe, the joint chief executive of Future Generations and former chief executive of PM Capital, said the LIC capital raising was looking “very healthy”. The fund can raise up to $500 million to invest globally through about 20 managers on a best-of-breed basis. Wilson, the founder of Wilson Asset Management who has devoted a lot of his time and money in recent years to various charitable ventures, is considered one of best LIC managers in Australia.
QBE’s chief investment officer, Gary Brader, said last week that his $30 million investment in the Future Generations Global fund was “perfectly aligned” with QBE’s commitment to investing part of its portfolio in opportunities with an additional social objective.
For the average investor, the fund also presents them with a below-average management cost structure, given that not only do the managers donate back their fees, also other service providers, such as the ASX and administrator White Consulting, provide pro-bono services.
