Investor Presentation

Transcription

1 Investor Presentation April 2016 Together, we are investing in Australia s future generation

2 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. 2

3 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 3

4 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 Supporting Australian non-profits for children at risk and youth mental health Unprecedented access to prominent Australian and global fund managers No management fees and no performance fees Listed investment company structure benefits 4

5 Investment objectives Provide a stream of fully franked dividends Achieve capital growth Preserve shareholder capital The allocation to the managers has been structured to provide a spread between three broad equity strategies: Long equities Absolute bias Quantitative strategies 5

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7 FGX fund managers 7

8 FGX charities 8

9 FGX service providers 9

10 FGX Performance

11 FGX highlights Fully franked 2.0 cents per share interim dividend $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 $5.71 million pre-tax profit as at 31 December

12 FGX outperformance Performance at 29 February 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% 12

13 FGX Net Tangible Assets as at 29 February 2016 NTA before tax c NTA after tax and before tax on unrealised gains c * NTA after tax c* 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 13

14 Investment strategy allocation Cash 12.2% As at 29 February 2016 (% of assets) Long equities Market neutral Absolute bias Cash Absolute bias 23.2% Market neutral 17.2% Long equities 47.3% 14

15 FGX allocation at 29 February 2016 Fund manager Investment Strategy % of assets Paradice Investment Large/Mid Cap Funds (split out below) 9.8% 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% 15

16 FGX Options 34,290,466 options have been exercised to date, for a total consideration of $37,719,513 $1.10 OPTIONS EXERCISE PRICE 16 September 2016 OPTIONS EXPIRE 16

17 Dividend donation plan 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 17

18 FGX Performance FGX donations to charities FY2015 $76,560 $88,570 $118,718 $90,322 $104,372 $84,662 $96,259 $94,764 $172,923 $80,160 Children at risk charities: $206,989 $89,768 $88,131 $82,283 $87,456 Australian charities: $82,071 TOTAL CHARITABLE ALLOCATION $1,644,015 18

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20 FGG fund managers 20

21 FGG charities 21

22 FGG service providers 22

23 FGG Performance

24 FGG highlights $302.1 million deployed with fund managers $2.5 million on track to donate for the 10 months of operations for FY

25 FGG outperformance Performance at 29 February 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% 25

26 FGG Performance NTA as at 29 February 2016 Net Tangible Assets (NTA) figures NTA before tax c NTA after tax and before tax on unrealised gains c NTA after tax c * The above figures are not diluted for 274,413,666 options on issue with an exercise price of $

27 FGG Performance Investment strategy allocation Cash 5.9% As at 29 February 2016 (% of assets) Long equities Quantitative strategies Absolute bias Cash Absolute bias 30.3% Long equities 57.3% Quantitative strategies 6.5% 27

28 FGG Performance Allocation at 29 February 2016 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% 28

29 Investor communications News from our Future Generation network Half yearly national investor presentations Monthly NTA announcement & investment update including featured fund manager & charity profile Half & full year financial results Website futuregeninvest.com.au Media Industry conferences Independent research 29

30 Contact us E: T: (02) F: (02) LinkedIn: Future Generation Investment Companies Together, we are investing in Australia s future generation