Is this the best share on the ASX to get exposure to international shares?

Future Generation Global Investment Co Ltd (ASX: FGG) could be the best way on the ASX to get exposure to international shares.

It is a listed investment company (LIC) that invests into the funds of leading ASX managers that focus on overseas shares.

For example, 8% of the assets are invested in a Magellan Financial Group Ltd (ASX: MFG) fund, 8.3% is invested in an Antipodes fund, 7.7% is invested in a Cooper Investors fund and so on.

You’re getting excellent diversification with this because each fund will have a completely different portfolio, so you’ll be exposed to hundreds of internationally-listed shares.

But, I don’t think diversification is the best part about Future Generation. The managers don’t charge management fees or performance fees – instead, 1% of the net tangible assets (NTA) per share is donated to youth mental health charities each year.

This means that if the overall Future Generation portfolio outperforms the MSCI AC World Index (AUD) then shareholders get to keep the difference, which is certainly the case over the past year – it outperformed the index by 3.5% over the past 12 months.

Some of the charities supported by Future Generation Global include Beyondblue, Black Dog, Headspace and A recent share purchase plan and placement raised almost $128 million, which will increase the LIC’s annual donation by more than $1 million.

The dividend paid by Future Generation is currently an annual fully franked payment of 1 cent per share. This amounts to a grossed-up dividend yield of 1.1%. International shares don’t pay as much of a dividend compared to Australian shares.

Foolish takeaway

There are many reasons to like Future Generation from both an investment and philanthropic standpoint. Whilst I prefer the ASX-focused Future Generation Investment Company Ltd (ASX: FGX), it would be possible to just own shares of both Future Generations and tick all the investment boxes such as diversification, plus you’ll be indirectly donating to worthy causes.

If you prefer to stick to quality ASX shares for market-beating growth then these top stocks could be what you’re after.

Top 3 ASX Blue Chips To Buy For 2019

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 2019."

Each one pays a fully franked dividend. 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 owns shares of FUTURE GEN FPO. 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.

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.