Future Generation Australia (FGX) investor relations material

Executive summary

• Portfolio delivered a 14.1% return in FY2025, outperforming the All Ordinaries' 10.1% return.

• Focus on delivering market or better returns with lower volatility than the index, achieved through a diversified manager base.

• Fee and expense savings exceeded AUD 11 million, enabling AUD 5.7 million in donations to youth-focused charities.

• Share price trades at an 8-9% discount to NTA, with ongoing efforts to close this gap.

• No management or performance fees; all managers and board serve pro bono.

Financial highlights

• Portfolio return of 14.1% for FY2025, compared to 10.1% for the All Ordinaries.

• Dividend yield of 5.3% on share price, grossed up to mid-7% with franking credits.

• Profit reserve supports over 6 years of current dividend payments.

• Since inception, annualized return of 9.8%, about 1% above the index, with 17% less volatility.

Outlook and guidance

• Portfolio positioned defensively with 25-30% cash amid market uncertainty and potential rate hikes.

• Expectation of continued market volatility due to interest rates, Middle East conflict, and private credit risks.

• Optimism for rate cuts in the US later in the year, which could benefit equities.

• Ongoing focus on diversification and risk management to navigate uncertainties.