Absolutely that (the cash in the offset/your home) counts...

Absolutely that (the cash in the offset/your home) counts towards a diversified portfolio. However, there is a big difference between your investment in your house and a REIT or a direct property trust. If it is was me, personal opinion only, I would want further diversification with regards to property. This way you can gain exposure to not only residential property, but also commercial, office and industrial (both domestic and international). This can be achieved via a REIT or perhaps a well regarded fund manager specialising in a range of REITs/Direct property. In this regard, I can recommend managers Folkestone/Cromwell/Centuria as good starting points for active management who invest in a range of REITs/property. If you prefer a passive approach you could look at VAP - Vanguard Australian Property ETF...

Your selections thus far seem well founded. I have considered both (FGG and WMI). The charitable aspect of FGG/FGX is very appealing, not to mention the instant access to a range of high profile fund managers.

As far as keeping your portfolio balanced, are you mainly interested in closed funds (LICs), like WMI and FGG? Or, are you open to all investment models, open/closed, active/passive etc. If you are mainly interested in closed funds, like LICs, WAM funds do have a cult following. Unfortunately, this has meant most of the funds, including the mainstay, Wam Capital, now sits at a high premium. If you are interested in low fees, but more of an index hugger, you will hear lots about LICs AFIC, Argo and Milton (all have large FUM and excellent liquidity). Personally, my own opinion only, I find it hard to justify paying a premium for LICs like AFIC, Argo or Milton, especially when you can access the index through an ETF which trades at NTA. However, I note there are benefits to this model over ETFs.

If you are not confined to closed funds, I would look at some of the highly regarded active (open) fund managers like Bennelong (Aus Equities), Magellan/Platinum/Hyperion (International), OC Funds Management/Spheria/Ausbil (Micro/Small caps), Infrastructure (Lazard/Magellan) etc.