You might remember him as the Governor of the Reserve Bank of Australia. Now, Philip Lowe sits atop a new kettle of fish — an ASX financial stock — one that the tenured economist is also choosing to put his money behind.
While the company capable of courting Lowe for his first job outside the RBA mightn't ring any bells to most, it's by no means insignificant. Today, the ASX-listed company's market capitalisation is $512 million — making it larger than fellow fund manager Australian Ethical Investment Ltd (ASX: AEF).
Which ASX stock is Philip Lowe buying?
Let me spare any further suspense. The company in question is Future Generation Australia Ltd (ASX: FGX), a listed investment company (LIC) of a different kind.
Founded in 1994, Future Generation Australia groups together 'leading' Australian fund managers into a single investment without charging shareholders management or performance fees. Instead, 1% of annual assets are put towards social good and not-for-profit organisations.
The company's website explains, "This [1% charitable payment] is less than the savings generated from foregone management, performance, service provider, board and investment committee fees."
Back to Philip Lowe.
Lowe happens to be the chair of Future Generation Australia, having taken over from former New South Wales Premier Mike Baird in March. Four months later, the former RBA governor has begun accumulating a position in the ASX stock.
According to change of interest notices, Lowe started buying shares in the company on 15 July. The first on-market purchase was 10,000 shares for $12,250. Two more orders for 10,000 shares each occurred on 16 July and 18 July.
The most recent buy happened only yesterday, adding another 10,000 shares to Mr Lowe's stash.
Philip Lowe purchased $49,1000 worth (or 40,000 shares) of ASX stock in total.
How has the fund performed?
The investment vehicle operated by Future Generation Australia allocates capital to more than a dozen different fund managers, including:
- Paradice Investment Management
- Regal Funds
- Wilson Asset Management
- Tribeca Investment Partners
- Firetrail Investments
According to a June update, the Future Generation Australia fund returned 14% over the last 12 months, beating the benchmark by 1.5%. For dividends, the fund offers a trailing yield of 5.4% based on the last two fully franked payments from the ASX stock.
