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Future Generation Global's strong investment portfolio performance drives increased fully franked full year dividend
In 2024, the Future Generation Global investment portfolio increased 26.7%*, marking two consecutive years of strong investment portfolio performance. This has enabled the Board of Directors to increase the fully franked full year dividend to 7.4 cents per share. This represents a fully franked full year dividend yield of 5.0%^ and grossed-up dividend yield of 7.1%^^, which is significantly higher than both the 1.7%# average global equity market and 1.3%# average US equity market yields.
The Company delivered a strong total shareholder return (TSR) for the period of 26.0%, or 28.9% when including the value of franking credits. This was driven by strong investment portfolio performance and the narrowing of the share price discount to net tangible assets (NTA). The current share price discount to NTA is 15.2%, as at 26 February 2025.
The investment portfolio performance contributed to a 77.9% increase in the Company’s operating profit before tax of $140.4 million (FY2023: $78.9 million) and a 75.3% increase in the operating profit after tax of $97.7 million (FY2023: $55.7 million).
Jennifer Westacott AO, Chair of Future Generation Global, said: “The investment portfolio has gained significant momentum, delivering robust and consistent performance over the past two years, thanks to strategic changes made by the Investment Committee. We are energised by the opportunities to create further value for our shareholders while addressing the urgent mental health challenges facing young Australians. The progress we have made this year on both fronts reinforces our belief that you really can “do good and do well”. It’s not an either-or situation.”
Caroline Gurney, CEO of Future Generation, said: “Our investment approach provides shareholders with unique access to leading global fund managers, offering diversification and lower concentration risk compared to the MSCI AC World Index (AUD). In 2024, the Investment Committee's portfolio construction, combined with the active management of our fund managers, has seen the investment portfolio increase more than 26%*. With this strong performance, we remain focused on narrowing the gap between our share price and NTA."
The Company’s investment portfolio has increased 9.7%* per annum since inception, with less risk than the market as measured by standard deviation. The Investment Committee believes our 14 leading fund manager’s disciplined investment processes focused on fundamentals, offer the best opportunities for delivering outperformance over the medium-to-long term.
Shareholders also benefited from savings equivalent to $11.2 million, or 1.8% of net assets, thanks to the Company’s leading fund managers, service providers, Board of Directors and Investment Committee members waiving their fees. This exceeds the 1.0% of net assets invested each year in the Company’s social impact partners. This highlights Future Generation Global’s commitment to providing value for investors, while creating meaningful social impact. In 2024, the Company made its ninth annual social investment of $5.9 million, bringing our total investment in youth mental health to $43.9 million.
*Investment portfolio performance is before expenses, fees and taxes to compare to the relevant index which is also before expenses, fees and taxes.
^Based on the 26 February 2025 closing share price of $1.47 per share and the FY2024 fully franked full year dividend of 7.4 cents per share.
^^Grossed-up dividend yield includes the value of franking credits and is based on a tax rate of 30.0%.
#Based on the MSCI World Index and S&P 500 Index dividend yields at 31 December 2024.
**Volatility is a statistical measure of the dispersion of returns for a given security or market index. Volatility is measured by standard deviation, and can be thought of as an assessment of the risk in the investment portfolio. In most cases, the higher the volatility, the riskier the investment.
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The Future Generation Companies, Future Generation Australia (ASX: FGX) and Future Generation Global (ASX: FGG), are Australia’s first listed investment companies to provide investment and social returns.
Future Generation provides shareholders with exposure to leading Australian and global fund managers who deliver a stream of fully franked dividends and capital growth to investors. This group of leading fund managers manages $1.3 billion in assets on a pro-bono basis, waiving their performance and management fees. Their generosity allows the Future Generation companies to invest 1% of net tangible assets each year in not-for-profit organisations.
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Future Generation
The Future Generation Companies, Future Generation Australia (ASX: FGX) and Future Generation Global (ASX: FGG), are Australia’s first listed investment companies to provide investment and social returns. Future Generation provides shareholders...
Expertise
Future Generation
The Future Generation Companies, Future Generation Australia (ASX: FGX) and Future Generation Global (ASX: FGG), are Australia’s first listed investment companies to provide investment and social returns. Future Generation provides shareholders...
Expertise
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