Future Generation: Company Research Report

Company Overview

Future Generation Companies

Future Generation operates through two listed investment companies (LICs): Future Generation Australia (FGX) and Future Generation Global (FGG). Both companies provide shareholders with exposure to leading fund managers without paying management or performance fees. A portion of the returns supports Australian not-for-profit organizations.

Mission

Future Generation's mission is two-fold:
1. Provide shareholders with diversified investment exposure without management or performance fees.
2. Deliver social impact by supporting Australian children, youth at risk, and youth mental health.

Founding

• Future Generation Australia (FGX): Founded in September 2014.

• Future Generation Global (FGG): Founded in September 2015.

Key People

• Philip Lowe: Chair of Future Generation Australia and former Governor of the Reserve Bank of Australia.

• Jennifer Westacott AO: Chair of Future Generation Global.

• Caroline Gurney: Chief Executive Officer of both FGX and FGG.

• Geoff Wilson AO: Founder, Director, and Investment Committee Member.

• Emily Fuller: Social Impact Manager.

Headquarters

Level 26, Governor Phillip Tower, 1 Farrer Place, Sydney, NSW 2000, Australia.

Number of Employees

No information is available.

Revenue

No information is available.

Reputation

Future Generation is known for its innovative investment model that merges wealth creation with philanthropy. Shareholders gain access to top-tier fund managers and contribute to meaningful social impacts.

Products

Future Generation Australia (ASX: FGX)

• Launch Date: September 2014

• Assets: $577.9 million (as of 31 August 2024)

• Share Price: $1.245

• Pre-Tax Net Tangible Assets: 139.96c

• Annualised Fully Franked Dividend: 7.0cps

• Grossed-Up Dividend Yield: 8.0%

• Performance Snapshot:

• Financial YTD: 9.8%

• 1 Year: 14.2%

• Since Inception: 9.3%

Key Features

• Investment Exposure: Access to prominent Australian fund managers.

• Social Impact: Supports not-for-profits focused on children and youth at risk.

• Dividends: Fully franked dividends ensuring tax efficiency for shareholders.

Future Generation Global (ASX: FGG)

• Launch Date: September 2015

• Assets: $629.9 million (as of 31 August 2024)

• Share Price: $1.33

• Pre-Tax Net Tangible Assets: 156.39c

• Annualised Fully Franked Dividend: 7.4cps

• Grossed-Up Dividend Yield: 8.0%

• Performance Snapshot:

• Financial YTD: 15.0%

• 1 Year: 14.9%

• Since Inception: 8.9%

Key Features

• Investment Exposure: Access to global fund managers.

• Social Impact: Focuses on youth mental health initiatives.

• Dividends: Fully franked dividends providing tax benefits.

Recent Developments

Future Generation Australia (FGX)

• HY2024 Q&A Results Webinar (3 September 2024): Recent results presented to stakeholders.

• Half-Year Report (2024): Comprehensive update on financial performance.

• Performance:

• Financial YTD: 9.8%

• 1 Year: 14.2%

• 3 Years %pa: 4.2%

• Investment Portfolio Outperformance: 1.1% over the All Ordinaries Accumulation Index.

Future Generation Global (FGG)

• HY2024 Q&A Results Webinar (4 September 2024): Recent financial performance detailed to shareholders.

• Global Exchange Event (August 2024): Networking and sharing event for global fund managers.

• Performance:

• Financial YTD: 15.0%

• 1 Year: 14.9%

• 3 Years %pa: 2.6%

• Investment Portfolio Outperformance: -2.3% compared to MSCI AC World Index.

Social Impact Initiatives

• David Gonski's Endorsement (2024): Hailed Future Generation's move to measure social impact rigorously.

• Donations: Donated over $75 million to Australian not-for-profits in eight years.

• Have Your Say - Donation Voting: Shareholders vote annually to allocate a portion of social investments to selected impact partners.

New Partnerships and Initiatives

• Webinars and Podcasts: Multiple webinars and a podcast series titled "2fold: Investing for Impact" exploring themes of investing, philanthropy, and mental health.

Conclusion

Future Generation companies continue to excel in providing value to shareholders while making significant contributions to social causes in Australia. Through diligent management and innovative strategies, FGX and FGG offer an exemplary model of combining investment with philanthropy.