Together, we are investing in Australia’s future generation
Investor Presentation
April 2016
Disclaimer
This presentation has been prepared for use in conjunction with a verbal presentation and should be read in that context. The information in this presentation is only intended for Australian residents. The purpose of this presentation is to provide information only and the contents of the presentation does not purport to provide investment advice. We strongly suggest that investors read the Prospectus and consult a financial adviser prior to making any investment decision. The presentation does not take into account the investment objectives, financial situation or particular needs of any person and should not be used as the basis for making investment, financial or other decisions. The information is selective and may not be complete or accurate for your particular purposes and should not be construed as a recommendation to invest in Future Generation Investment Company Limited or Future Generation Global Investment Company Limited. The information provided in the presentation is given in good faith and is believed to be accurate at the time of compilation. Neither Future Generation Investment Company Limited, Future Generation Global Investment Company Limited nor its directors or employees make any representation or warranty as to the accuracy, reliability, timeliness or completeness of the information. To the extent permissible by law, Future Generation Investment Company Limited, Future Generation Global Investment Company Limited and its directors and employees disclaim all liability (whether arising in contract, tort, negligence or otherwise) for any error, omission, loss or damage (whether direct, indirect, consequential or otherwise). Neither Future Generation Investment Company Limited, Future Generation Global Investment Company Limited nor its directors or employees guarantee or make any representation as to the performance of Future Generation Investment Company Limited, Future Generation Global Investment Company Limited, the maintenance or repayment of capital, the price at which shares may trade or any particular rate of return.
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Future Generation – our purpose
Australia’s first listed philanthropic wealth
creation vehicles
Access to prominent domestic (FGX) and global (FGG) fund managers who act
pro bono
Companies donate 1% of net assets each year
to charity
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Australia’s first LICs with a dual purpose
FGX and FGG shareholders are changing lives for Australia’s most vulnerable children and youth
Capital growth and fully franked
dividends
Unprecedented access to prominent
Australian and global fund managers
No management fees and no performance fees
Supporting Australian non-profits for children
at risk and youth mental health
Listed investment company structure benefits
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Investment objectives
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Preserve shareholder capital
1 The allocation to the managers has been structured to provide a spread between three broad equity strategies:
• Long equities • Absolute bias • Quantitative strategies
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Provide a stream of fully franked dividends
Achieve capital growth
FGX fund managers
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FGX charities
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FGX service providers
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FGX Performance
FGX highlights
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Fully franked 2.0 cents per share interim dividend
$5.71 million pre-tax profit as at 31 December 2015
$1.64 million donation to Australian charities with a focus on children at risk on 23 October 2015
$2.2 million on track to donate for FY2016
FGX outperformance
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Performance at 29 February 2016
3 MONTH
6 MONTH
FYTD
1 YEAR
Since Inception September 2014
(% pa)
FGX -1.5% 4.8% 6.6% 4.6% 6.8%
S&P/ASX All Ordinaries Accumulation Index -4.3% -3.1% -6.4% -12.2% -3.8%
Outperformance +2.8% +7.9% +12.9% +16.9% +10.6%
FGX Net Tangible Assets as at 29 February 2016
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The above figures are not diluted for 172,636,115 options on issue with an exercise price of $1.10 *These figures are after the tax payment of $251,000 (0.13 cents per share) in tax during the month
NTA before tax
113.84c NTA after tax and
before tax on unrealised gains
113.17c*
NTA after tax
113.73c*
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Investment strategy allocation
Long equities 47.3%
Market neutral 17.2%
Absolute bias 23.2%
Cash 12.2%
Long equities
Market neutral
Absolute bias
Cash
As at 29 February 2016 (% of assets)
FGX allocation at 29 February 2016
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Fund manager Investment Strategy % of assets
Large/Mid Cap Funds (split out below) 9.8%
Paradice Investment Paradice Australian Equities Mid Cap Fund Long equities 5.4% Paradice Large Cap Fund Long equities 4.4%
Bennelong Australian Equities Partners Bennelong Australian Equities Fund Long equities 9.7%
Regal Funds Management Regal Australian Long Short Equity Fund Long equities 9.4%
Wilson Asset Management (International) Wilson Asset Management Equity Fund Absolute bias 8.0%
Watermark Funds Management Watermark Absolute Return Fund Market neutral 7.8%
Eley Griffiths Group Eley Griffiths Group Small Companies Fund Long equities 7.6%
Tribeca Investment Partners Tribeca Alpha Plus Fund Absolute bias 6.6%
Optimal Fund Management Australia Optimal Australia Absolute Trust Market neutral 4.9%
Cooper Investors Cooper Investors Australian Equities Fund Long equities 4.8%
Sandon Capital Sandon Capital Activist Fund Absolute bias 3.9%
Discovery Asset Management Discovery Australian Small Companies Fund Long equities 3.5%
LHC Capital LHC Capital Australia High Conviction Fund Absolute bias 3.3%
Bennelong Long Short Equity Management Bennelong Long Short Equity Fund Market neutral 3.2%
Smallco Investment Manager Smallco Broadcap Fund Long equities 2.5% Lanyon Asset Management Lanyon Australian Value Fund Absolute bias 1.5% Qato Capital Qato Capital Market Neutral L/S Fund Market neutral 1.3%
Cash and Term Deposits Cash 12.2%
34,290,466 options have been
exercised to date, for a total consideration of
$37,719,513
FGX Options
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$1.10 OPTIONS EXERCISE PRICE
16 September 2016 OPTIONS EXPIRE
Dividend donation plan
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Dividend Donation Plan (DDP) enables shareholders to donate all or part of their cash dividend directly to the designated FGX charities
Shareholders can donate as little as 1% or as much as 100% of their dividend payment
Tax deductible donations to the designated charities made through the DDP will go towards the initiatives currently supported by FGX
FGX donations to charities FY2015
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FGX Performance
$76,560 $88,570 $118,718 $90,322 $104,372
$84,662 $96,259 $94,764 $172,923 $80,160
$89,768 $88,131 $82,283 $87,456
Children at risk charities: $206,989 Australian charities: $82,071
TOTAL CHARITABLE ALLOCATION $1,644,015
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FGG fund managers
FGG charities
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FGG Performance
FGG highlights
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$2.5 million on track to donate
for the 10 months of operations for FY2016
$302.1 million deployed with fund managers
FGG outperformance
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Performance at 29 February 2016
1 MONTH
3 MONTH
Since Inception September 2015
FGG -1.3% -5.0% -4.8%
MSCI World Index -1.7% -7.3% -5.9%
Outperformance +0.4% +2.3% +1.1%
NTA as at 29 February 2016
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Net Tangible Assets (NTA) figures
*The above figures are not diluted for 274,413,666 options on issue with an exercise price of $1.10.
NTA before tax
102.50c NTA after tax and
before tax on unrealised gains
103.06c
NTA after tax
104.75c
FGG Performance
Investment strategy allocation
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As at 29 February 2016 (% of assets)
Long equities 57.3%
Quantitative strategies
6.5%
Absolute bias 30.3%
Cash 5.9%
Long equities
Quantitative strategies
Absolute bias
Cash
FGG Performance
Allocation at 29 February 2016
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Fund manager Investment Strategy % of assets Magellan Asset Management Magellan Global Fund Long equities 10.1%
Ironbridge Capital Management Ironbridge Global Focus Fund Long equities 9.8%
Cooper Investors Cooper Investors Global Equities Fund (Unhedged) Long equities 8.6%
Antipodes Partners Antipodes Global Fund Absolute bias 7.8% VGI Partners VGI Partners Funds Absolute bias 7.7% Marsico Capital Management Marsico Global Fund Long equities 7.2%
Nikko Asset Management Australia Nikko AM Global Share Fund Long equities 5.8%
Manikay Partners Manikay Global Opportunistic USD Fund Absolute bias 5.1%
Ellerston Capital Ellerston Global Investments Wholesale Fund Long equities 5.0%
Morphic Asset Management Morphic Global Opportunities Fund Absolute bias 4.5%
Neuberger Berman Australia Neuberger Berman Systematic Global Equities Trust Quantitative strategies 3.8%
Cooper Investors Cooper Investors Asian Tiger Fund Long equities 3.3%
Paradice Investment Management Paradice Global Small Mid Cap Fund Unhedged Long equities 3.3%
Tribeca Investment Partners Tribeca Global Total Return Fund Quantitative strategies 2.7%
Antipodes Partners Antipodes Asia Fund Absolute bias 2.5%
Insync Funds Management InSync Global Titans Fund Long equities 1.5%
Avenir Capital Avenir Value Fund Absolute bias 1.4%
Hunter Hall Investment Management Hunter Hall Global Equities Trust Long equities 1.4%
Optimal Fund Management Optimal Japan Absolute Long Fund Long equities 1.3%
Eastspring Investments (Singapore) Eastspring Investments Asian Dynamic Fund Absolute bias 1.3%
Cash and Term Deposits Cash 5.9%
FGG Performance
Investor communications
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News from our Future
Generation network Half yearly
national investor presentations
Half & full year financial results
Independent research
Website futuregeninvest.com.au
Monthly NTA announcement &
investment update including featured fund manager &
charity profile
Media Industry conferences
Together, we are investing in Australia’s future generation
Contact us E: [email protected]
T: (02) 9247 9202
F: (02) 9247 6855
www.futuregeninvest.com.au
Twitter: @FutureGenInvest
LinkedIn: Future Generation Investment Companies
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