28-May-2020:  I've been looking at the Affluence LIC Fund, which holds nothing but LICs (listed investment companies).  Daryl Wilson's latest "wire" on livewiremarkets.com, titled "A complete guide to LIC investing" was posted on May 22nd (last week) and can be viewed by clicking here.

Currently, the Affluence LIC Fund has FGG (Future Generation Global Fund) as its largest holding, followed by Blue Sky Alternative Access Fund (BAF) which is soon to be managed by Geoff Wilson's WAM Funds, and the third largest position is FGG's sister fund, FGX, the Future Generation Australia Fund.

The L1 Long Short Fund (LSF) makes up #4 and Monash Absolute Investment Company (MA1) is the fund's 5th largest position.

The average discount to NTA across all of the LICs held in the Affluence LIC Fund has now blown out to around 22% to 23%, which is massive.  That means that at these prices, Daryl is buying $1 worth of assets at 77c to 78c. 

FGG itself closed at $1.18, but it finished April at $1.125, while its pre-tax NTA was $1.4262, so there was a 21% discount to NTA in that $1.125 SP.  Even at $1.18, that's a 17.26% discount to that April before-tax NTA of $1.4262. 

While we're used to seeing double digit NTA discounts across many of the global and specialised LICs, those sort of discounts seem to apply to a lot more LICs these days than they have done in the past.  I highlighted recently how varied the discounts and premiums were across the various WAM Funds' LICs, with two of them (WAM & WAX) still trading at high premiums, and others trading at various discounts.  WGB (their global fund) was trading at the largest discount.

BAF, which will soon become WAM Funds' 7th managed LIC, is trading at a discount of over 30%.  Little wonder it's Daryl's second largest position in his Affluence LIC Fund. 

Disclosure:  I hold BAF, FGX, WAM, WGB, WLE, and I'm looking to buy back into FGG shortly.  I'm also looking at investing in the Affluence LIC Fund.

25-May-2020:  https://futuregeninvest.com.au/virtualforum/

With current crowd restrictions in place, and investing roadshows cancelled, FG (who run the FGX & FGG funds) have created a "Virtual Investment Forum".  Everything but the free food and drinks.

28-Feb-2020:  FGG announces full year results

Plus:  Appendix 4E and Annual Report

May 2019 Shareholder Presentation

Both FGX and FGG (together - the FG Funds, or just FG) present after the Wilson Asset Management Group presents in each of Australia's major capital cities during their Australian Roadshows every 6 months, and that link above will take you to the slideshow used in FG's latest roadshow presentation which has just finished (meaning the latest roadshow has just wound up during the past week).

http://futuregeninvest.com.au/lic/future-generation-global-investment-company/

http://futuregeninvest.com.au/wp-content/uploads/2019/05/04.-FGG-NTA-April-2019.pdf

http://www.livewiremarkets.com/wires/future-generation-investment-forum-may-2019

Founded by Geoff Wilson of the Wilson Asset Management Group (WAMG or The WAM Group - who currently manage 6 LICs themselves), this LIC is a fund of funds which supports charities focussed on mental health, particularly child and young adult mental health.  FGG - which focusses on companies listed outside of Australia - was set up in September 2015, a year after Geoff had set up FGX - which focusses on Australian listed companies.

All of the fund managers that FGX and FGG (together known as FG) use provide their services to FG completely free - so they invest a portion of FGX's or FGG's FUM in their own investment strategies, but they don't charge any management or performance fees.  The vast majority of FG's service providers also don't charge any fees to FG or else they heavily reduce their fees, which all allows FG to donate 1% of their FUM to their designated charities every year.

http://futuregeninvest.com.au/wp-content/uploads/2019/01/FGG-Factsheet_Nov18.pdf

From that factsheet:

Future Generation Global Investment Company Limited (ASX: FGG) is 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.

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

The Company’s investment objectives are to provide  long-term capital growth and fully franked dividends,  and to maximise total shareholder return.
 

Together, FGX and FGG have already donated $21 million to their charities and they will donate another $11m in October, so they are significant supporters of these charities, and ordinary retail shareholders can be a part of it by buying shares in one or both of them.  If you use CBA's Commsec as your online broker they even rebate your brokerage fees. 

FGX and FGG are also the only companies listed on the ASX that are exempt from paying listing fees to the ASX, as the ASX also support them by waiving those listing fees (which they don't do for anybody else). 

The only corporate supporter of Australian charities that I am aware of that is larger than the Future Generation Group (in terms of their annual charitable donations) is the Paul Ramsay Foundation which was set up under the instruction of the late Paul Ramsay, the founder of Ramsay Health Care (ASX: RHC) to administer the majority of his estate via "supporting charitable causes in Australia with the aim of creating systemic change with significant impact."

Disclosure:  I don't currently hold FGG shares.  I participated in their IPO in September 2015 (one year after Geoff launched FGX) and I have held FGG shares for the majority of the past 3.6 years, but I don't currently.  FGG are currently trading at around their most recently published pre-tax NTA (which was $1.38 at April 30, 2019).  I last sold out of FGG (last year) when they were trading at a premium to their NTA (because I needed the money to take advantage of another opportunity at the time).  If they start trading at a good discount to their NTA again, I'd be back in PDQ.