I manage a portfolio for my ageing parents. Sometime ago they...

I manage a portfolio for my ageing parents. Sometime ago they asked me the same question for all 11 of their grandkids. After discussion, we invested in FGX for a couple of reasons:
- it’s very diversified across top fund managers
- it’s actively managed for risk across long, absolute, long-short and cash weightings
- zero fees (no Director fees, no management fees, no chess fees etc). The fund managers donate their fees back into the LIC
- a 1% charitable donation is given away each year by the LIC to children’s charities (and the kids can chose which ones for their shares)
- regular dividends are reinvested with a small discount to the SP.

So a lovely mix of introducing kids to investment and philanthropy. Performance has been good - less than ASX200, but you expect that given its weighting and lower volatility/risk. Conversations with the kids about choice of charity is very rewarding too.

BTW - FGX was setup by Geoff Wilson after borrowing the idea from a similar fund in London.

Cheers. Simon