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Charities to receive share in $500m investment initiative

Investors and charities both win as top fund managers join forces for good

Top fund managers will donate a part of $500 million to medical charities as part of its public offering into a Listed Investment Company (LIC).

The backers of the ASX-listed fund aimed to see $500 million invested in LIC Company, Hearts and Minds Investments Limited, but was over-subscribed in just three days. It will now aim to build its share register and see part of the investments go to charity.

The $500 million will provide investors with a concentrated portfolio of the highest conviction stock ideas from leading fund managers while supporting medical research institutes. A 1.5% per annum average of the Net Tangible Assets will be donated to charity every six months and accrue monthly regardless of company performance.

Chairman Chris Cuffe AO, said investors would see this as a compelling opportunity to invest with the nation’s top fund managers while donating to local medical research.

“This is a unique opportunity to invest alongside some of the country’s leading investments minds and tap into their “collective wisdom”,” Cuffe said. “Furthermore, its charitable goal means investors can gain returns while giving back to society by supporting the development of new Medecins and treatments.”

As part of its charitable goal, the LIC will forgo investment fees and running costs will be minimised. Director and committee fees will be waived, as will broker management fees.

Founder of Cooper Investor, Peter Cooper, told Fairfax Media that the investments would build on Australia’s global leading role in medical research: “For every dollar invested in medical research, an average of $2.17 in health benefits is returned.”

Cooper Investor’s designated charities are Orygen, the National Centre of Excellence in Youth Mental Health, The Centre of Human Psychopharmacology at Swinburne University and The Mind and Brain Centre at Sydney University.

“I chose these charities because I believe that by advancing brain cancer, we can better understand the brain and how it functions in relation to mental health and well-being. We can also combat the stigma of brain disorders through education,” he said.

Other designated charities includes the Black Dog Institute, Multiple Sclerosis Research Australia, the Charlie Teo Foundation and the Victor Chang Cardiac Research Institute. These charities were nominated by the Core Fund Managers and LIC’s Board, and are expected to see support through the investment.

“We are pleased to see some of the country’s biggest family investors have shown strong support for the LIC and its goals,” Cuffe said.

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