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Free Brokerage on Buy Trades of FGX and FGG (Commsec)

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Free Brokerage on Buy Trades of FGX and FGG (Commsec)
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LMikeHunt on 26/09/2016 - 17:40 commsec.com.au (239 clicks)
Last edited 27/09/2016 - 16:42

Commsec are offering 100% brokerage refund on buy trades for FGX and FGG with certain conditions (eg you have a Commsec trading account linked to a Australian bank account). I believe these companies stack as an investment in their own right (however this is not advice - do your own research). They also have a charitable objective as described below.

For full disclosure I am a holder of FGX and would benefit if the price rose.

About FGX and FGG

These two listed investment companies do not charge management fees but have pledged a donation of 1% of their net tangible assets each year, to a selection of charities supporting at risk children in Australia:

Future Generation Investment Company Limited (ASX: FGX)
Enables investor’s access to a group of prominent Australian fund managers, using a single investment vehicle.
Future Generation Global Investment Company Limited (ASX: FGG)
As Australia’s first internationally focused listed investment company, investors are offered access to a number of global fund managers, also using a single investment vehicle.

Financial Funds Investment Shares (financial)

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closed Comments

  • [Deactivated] on 26/09/2016 - 18:29
    +5

    Never buy a share that someone you don't trust advises you to buy.

  • tzar on 26/09/2016 - 18:42

    Correct me if I'm wrong, but it looks like the fund invests across a broad range of other listed and unlisted funds which do have their own management fees? e.g Wilson Asset Management are around 1% fee for their main fund incorporated into their asset price.. So you'd still be charged a fee from them and then the 1% donation on top of that?

    • MikeHunt on 26/09/2016 - 18:51
      +4

      Can confirm the following:
      1. The fund invests across a broad range of unlisted funds (no listed funds).
      2. All the underlying managers (including Wilson Asset Management) are waiving their usual fee.
      3. The total cost to investors for management fees is thus 1%, all of which is donated.
      4. Most (if not all) of services (eg registry, accounting, office space etc) is provided pro bono.

      • argonbay on 26/09/2016 - 21:27

        @MikeHunt
        I like your username, awesome!
        Your point 1) is not correct. A lot of the funds are invested in ASX and other listed companies.

        • MikeHunt on 26/09/2016 - 21:49
          +1

          argon
          My point is that the underlying investments in FGG and FGX are all unlisted funds.
          As you say those underlying unlisted funds invest in listed companies.
          Apologies for any confusion.
          Mike

        • argonbay on 26/09/2016 - 22:56
          +1

          @MikeHunt: OK, I got you now. Looking forward to FGX price creeping back to NTA now that the options are no longer in play.

        • MikeHunt on 27/09/2016 - 06:04

          Me too. NTA might be about 1.17 now pre tax.
          It could eventually trade at a reasonable premium.

    • argonbay on 26/09/2016 - 21:04

      Typically the fund managers charge around 1% of funds invested and also a fee for profit made above a nominated benchmark.

      Fund managers have agreed to rebate all fees for funds invested by FGX. One percent of funds is donated to various charities each year.

  • fruit on 26/09/2016 - 18:47
    +4

    CommSec is a business keep that in mind before thinking this is them just being nice.

    • argonbay on 26/09/2016 - 21:21
      +1

      I think it is more to do with the charitable objectives of the funds. All fund managers and others (registry, accounting etc) are providing there services to FGX and FGG at no charge. One percent of funds is donated to charity each year. CommSec are doing their bit to promote these funds.

  • thirtysixd on 26/09/2016 - 19:37
    +1

    If its only buy trades you would be better off with a low cost broker

  • Ghos7 on 26/09/2016 - 19:44

    The best and cheapest broker is Interactive Brokers. I have been using them for over 5 years and highly recommend them.

    • jimbobmcgoo on 26/09/2016 - 20:12
      +5

      Not being chess sponsored is a show stopper though

      • abc on 26/09/2016 - 21:07

        If you trade CFD's its ok to go with non CHESS sponsored broker.

        If you don't know what a CFD is then a CHESS Sponsored broker is a must :)

  • BlueSkyHarvest on 27/09/2016 - 04:59
    +1

    Can anyone give a link to text detailing this offer by CommSec?

    When an order on FGG is made the standard $19.95 is added to the cost. Presumably there is some refund process. However I could not find any reference to the FGG or FGX brokerage refund on the CommSec site. So if the $19.95 did not get refunded, I would be left saying to CommSec that Mike Hunt told me it was true.

  • MikeHunt on 27/09/2016 - 06:00
    +1

    T&C screenshot in the deal.

  • abc on 09/10/2016 - 22:01

    Its funny how they are pumping these stocks just before the "free" options from the ipo are about to expire. Two significant headwinds to be mindful of in the near term due to this…

    1. Most of the options will be converted into (more) shares on issue as the option exercise price is below the current share price and NTA of the stock.

    2. Possibilty of having lots of post options stock being dumped by arbitrage seekers.

    DYOR :)

    • MikeHunt on 10/10/2016 - 12:46

      I have done my own research and the options for FGX expired on 16 September 2016!
      FGG have above one year to go. The options are out of the money, so no arbitrage here.
      I dont think its a "pump". Its vanilla CSR by Commbank / Commsec.

      MH

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