There’s a large number of people out there that would argue our market/capitalist economy doesn’t add much to society as a whole except making profit. I can somewhat see where they’re coming from. However, nearly everyone is living much better lives than what was possible 50 years ago.
But, Future Generation Global Investment Co Ltd (ASX: FGG) could be one of the best examples where helping society and making good profit is possible.
Future Generation Global Investment Co is a listed investment company (LIC) that invests in some of the best Australian overseas-focused fund managers including Magellan Financial Group Ltd (ASX: MFG). However, Future Generation Global doesn’t charge any management fees nor performance fees – and neither do the underlying fund managers.
Instead, 1% of Future Generation Global’s net tangible assets (NTA) are donated each year to charities focused on Australian youth mental health. There are eight charities including beyondblue and headspace.
However, Future Generation Global isn’t good just for the philanthropic work. Over the past year its portfolio has returned 22.7% before donations and other costs. Of course, you shouldn’t expect this type of return every year, but it shows that the underlying fund managers are strong performers.
Today, Future Generation Global announced that it is undertaking a share purchase plan and placement for an additional 75 million shares at $1.34, which is slightly cheaper than the current share price of $1.39. Increasing the pool of money will increase the charitable donations each year.
Future Generation Global also offers a small grossed-up dividend yield of 1%.
Considering the underlying investments make Future Generation Global so diverse, I’d be happy for it to be a significant portion of my portfolio if I didn’t have enough overseas exposure whilst also indirectly contributing to a very good cause.
Another share that’s driving growth for shareholders is this top ASX stock that’s starting to expand into Asia.
It's been a nail-biter of a reporting season here in the first half of 2018.
But the real action, in my opinion, is what companies are doing with dividends.
What does this mean for you? Well there is one stock I've found that could very well turn out to be THE best buy of 2018. And while there's no such thing as a 'sure thing' when it comes to investing - this ripper might come as close as I've ever seen.
Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.