Future Generation Global Investment Company Limited (FGX) and Future Generation Investment Company Limited (FGG) gave a combined total of $7.1 million to a range of charities in 2017, according to annual reports issued by the socially-conscious investment funds.
Founded in 2014 and 2015 respectively, FGX and FGG invest their shareholders’ funds with a number of leading Australian and global fund managers without paying management or performance fees.
Under the unique funding model, instead of paying management fees to the fund managers, the two ASX-listed funds instead donate 1% of their assets to the charities they support.
FGX, which invests in ASX-listed stocks, delivered a record operating profit after tax of $22.3 million for the year ended December 31 and donated a total of $4.1 million to 14 nonprofits focused on helping children and at-risk youth.
Over the same time period FGG, which focuses on investments outside Australia, secured an after-tax profit of $3 million for investors and donated $3 million to eight youth mental health charities.
In a statement, FGX chief executive officer Louise Walsh said the result was made possible through the generous pro bono support of fund managers.
“We are grateful to our participating fund managers for continuing to deliver solid risk-adjusted returns for shareholders, while supporting Australian charities focused on children and youth at risk,” Walsh said.
“The value of the fund managers’ foregone management and performance fees for the year totalled $6.5 million and the estimated value of the leading service providers working for the Company on a pro bono basis totalled $600,000.
“At 1.7% of the assets of the company, these savings to shareholders exceed the annual donation to charities. Thanks to our fund managers and service providers, FGX is on track to deliver its fourth annual investment of over $4.1 million in October 2018.
“We are delighted that this investment would bring the total charitable donation since inception to $11.8 million.”
FGG chairman Belinda Hutchinson said the fund had delivered on its objective of providing an attractive investment to shareholders and significant funding to Australian charities focused on youth mental health.
“We were pleased to deliver shareholders a solid 19.4% total shareholder return and charities a $3.0 million investment during the year,” Hutchinson said.
“In October 2017 we invested a further $3.0 million in the programs that FGG is supporting and we are on track to deliver our third annual investment of approximately $3.5 million, to be paid in October 2018. This would bring the total charitable investment since inception to $8.9 million.”
The partner charities for FGX are Act For Kids, Australian Children’s Music Foundation, Australian Indigenous Education Foundation, DEBRA Australia, Diabetes Kids Fund, Giant Steps, Kids Helpline, Lighthouse Foundation, Mirabel Foundation, Raise Foundation, United Way Australia, Variety, Youth Focus and Youth Off The Streets.
The FGG donation will be distributed to beyondblue, Black Dog Institute, Brain and Mind Centre, Butterfly Foundation for Eating Disorders, headspace, Orygen – the National Centre of Excellence in Youth Mental Health, ReachOut Australia and SANE Australia.