Hearts and Minds Investments Limited
A group of Australian fund managers have joined forces to launch a listed investment company - called Hearts and Minds Investments Limited - that will not only provide investors with a high conviction portfolio, but will also support leading Medical Research Institutes in Australia.
Hearts and Minds Investments Limited will invest in a concentrated portfolio of approximately 25 securities based on the highest conviction ideas from two groups of fund managers listed below.
Core fund managers - 60% of the LIC’s portfolio will be held in approximately 15 stocks based on three recommendations, reviewed quarterly, from each of five leading fund managers: Caledonia, Cooper Investors, Magellan, Paradice Investment Management and Regal Funds Management.
Conference fund managers - 40% of the LIC’s portfolio will be held in approximately 10 stocks based on the recommendations of fund managers presenting at the annual Sohn Hearts and Minds Investment Conference.
The LIC will donate 1.5% (plus GST) per annum of the average net tangible assets (NTA) for the previous half year to designated charities every 6 months.
The LIC has already received pre-commitments exceeding $225 million and is seeking to raise $500 million. It will not accept over subscriptions and a listing date of 21 November 2018 is proposed.
"I am passionate about supporting medical research": Q&A with Regal Funds Management's Philip King
- Who came up with the idea for the Sohn Hearts and Minds conference and the fund?
The idea for a conference, where top fund managers gather and share their investment ideas, originated in the US, but Gary Weiss brought it to Australia. Since it was introduced two years ago, the Sohn Hearts and Minds Conference has donated more than $8 million to beneficiaries, including the Victor Chang Cardiac Research Institute and the Black Dog Institute.
The concept of creating a listed investment company (LIC) based on the conference came from Matthew Grounds, Guy Fowler and Gary Weiss, and they have since involved a number of high profile Australian fund managers and investors. The Hearts and Minds Investment LIC (ASX: HM1) is an opportunity for investors to access a concentrated portfolio of high conviction stock picks but also give back to charities involved in medical research.
- Was it easy to get on board the LIC?
From my perspective, it was easy to be involved in Hearts and Minds given it is a great cause. I am passionate about supporting medical research. Regal’s designated charity for the LIC is the research department at the Royal Prince Albert Hospital. One of my close friends is an emergency specialist there and unfortunately they don’t always attract the research funding that other health areas attract. I also know firsthand the value of the public health sector as my wife is a midwife at Sydney’s North Shore Hospital - so getting on board Hearts and Minds was an easy decision.
"For every dollar invested in medical research, an average of $2.17 in health benefits is returned."