Future Generation Australia (FGX) H2 2024 earnings summary

Executive summary

• Total shareholder return reached 20.6% for FY2024, consistently outperforming the ASX 200, Small Ordinaries, and other benchmarks over the fund's 10-year history.

• Fully franked full year dividend of 7.0 cents per share for FY2024, resulting in a grossed-up yield of 8.3%.

• Social investment totaled $5.4 million in 2024, with over $87.2 million invested since inception to support vulnerable Australian children.

• Appointment of the first Chief Investment Officer to enhance investment and distribution capabilities.

Financial highlights

• Investment portfolio delivered a 13% return in FY2024, outperforming the All Ords by 1.6% and Small Ords by 4.6%.

• Since inception, the portfolio has delivered 9.3% annualized growth, beating both major indices.

• Net Tangible Asset (NTA) growth was 11.8% for 2024.

• Share price discount to NTA narrowed from 17.1% to 8.63% over the year.

• Profits reserve at year-end was 37.9 cents per share, covering 5.4 years of dividends.

Outlook and guidance

• Commitment to further narrowing the share price discount to NTA.

• Expectation of further interest rate cuts in Australia, with three more anticipated, supporting consumer confidence and company earnings.

• Ongoing focus on investment in small-cap companies for long-term performance.