Magellan’s (ASX:MFG) Hamish Douglass is backing this new $500 million LIC

I’m always on the lookout for a good listed investment company (LIC) that could create good returns after fees for my portfolio, or be of interest to readers.

A new LIC may be hitting the ASX boards in a couple of months in November 2018.

The AFR’s Street Talk understands Magellan Financial Group Ltd’s (ASX: MFG) Hamish Douglass, Australia and New Zealand Banking Group’s (ASX: ANZ) Chairman David Gonski, Solomon Lew of Premier Investments Limited (ASX: PMV), the Lowy family of Westfield fame and the Paul Ramsay Foundation are among investors that have signed up for the first $100 million of the capital raising for the proposed LIC.

Hearts and Minds Investments Ltd is the name of the proposed LIC and it will apparently invest in ideas from the annual Sohn Hearts & Minds investment conference. That conference raises money for medical research partners to help cure diseases.

It’s likely that the new LIC will support medical charities in a similar way that Future Generation Global Investment Co Ltd (ASX: FGG) helps youth charities. Sohn Hearts & Minds charity partners include Victor Chang Cardiac Research Institute, MS Research Australia, Murdoch Children’s Research Institute, The Black Dog Institute and JDRF Australia.

A large array of brokers are supposedly involved in raising money for the LIC including Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd (ASX: NAB).

A draft prospectus is expected to be lodged with ASIC soon. I imagine this LIC will have some sort of global investment mandate considering the involvement of Mr Douglass.

Foolish takeaway

With a potential listing only two months away it would seem $500 million is a fairly hefty target. If it is globally focused I will be very interested to look at the fees, the potential investments and the charitable causes. I may decide to invest if it ticks the right boxes.

Until then, I have my eyes on these top shares for my portfolio.

3 Top Shares To Buy In September

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. The Motley Fool Australia owns shares of National Australia Bank Limited. 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.