Future Generation Australia (FGX) Meet our Chairs Conference summary

Company performance and financial highlights

• FGX portfolio returned 16.1% over 12 months to May 2024, with a grossed-up dividend yield of 8.1% and a fully franked yield of 5.7%; FGG returned 15.5% with a grossed-up yield of 7.9% and fully franked yield of 5.5%.

• Both funds maintain robust profits reserves, with FGX at 32.6 cents per share (4.9 years) and FGG at 58.1 cents per share (8.1 years), supporting consistent, high dividend yields and long-term capital growth.

• Investment committees actively manage fund manager lineups to improve performance and reduce discounts to NTA.

• Shareholders access leading fund managers without management or performance fees.

• Pro bono fund managers and service providers enable 1% of net assets to be donated to Australian youth mental health and at-risk youth not-for-profits, totaling AUD 75.8 million to date.

Leadership perspectives and motivations

• Caroline Gurney, Dr Philip Lowe, and Jennifer Westacott AO led the webinar, emphasizing the dual focus on investment returns and social impact.

• Chairs Jennifer Westacott and Philip Lowe joined due to the innovative double dividend model, combining strong investment returns with social impact.

• Both leaders emphasized the importance of long-term, focused support for youth mental health and prevention.

• The pro bono commitment of board members and fund managers is central to the company’s mission.

• Long-term relationships with supported charities are prioritized, with regular reviews to ensure impact.

Economic outlook and policy discussion

• Australia faces weak productivity growth, unfavorable demographics, and persistent inflation, risking stagnating living standards.

• Key areas for productivity improvement include tax reform, infrastructure investment, skills development, energy system efficiency, and public service delivery.

• Interest rates may need to rise further to control inflation, with the timing of rate cuts varying globally.

• Both leaders advocate for long-term policy thinking, including fixed parliamentary terms and greater use of intergenerational reporting.