Highlights FGX continues to outpace market and announced maiden interim dividend Investment portfolio increased 15.2% in the 12 months to December 2015, outperforming the S&P/ASX All Ordinaries Accumulation Index by 11.4% On track to donate an expected $2.2 million to charities in FY2016 Fully franked 2.0 cents per share maiden interim dividend Future Generation Investment Company Limited ( FGX or the Company ) announces a 430.2% increase in pre-tax operating profit to $5.7 million (2014: $1.1 million) and a 472.3% jump in net profit after tax to $4.5 million (2014: $0.8 million). Also in the six-month period there was an unrealised gain on investments of $11.4 million. The increase on the previous period reflects the strong performance of the investment portfolio, which increased 15.2% in the 12 months to 31 December 2015, outperforming the S&P/ASX All Ordinaries Accumulation Index by 11.4%. Founder and Director, Geoff Wilson, said the Company had delivered solid, risk-adjusted results for shareholders amidst challenging market conditions. The investment porfolio s allocation to long equities, absolute bias and market neutral strategies employed by leading fund managers has proved to be a boon during this highly volatile period, Mr Wilson said. FGX s fund managers have delivered 15.2% outperformance with significantly less volatility, 8.0% against the market s 14.1% in the 12 months to 31 December 2015, he said. The company announces it is on track to deliver a $2.2 million donation to charities for the 2016 financial year. On 12 January 2016 the Board of Directors announced a fully franked 2.0 cents per share interim dividend to shareholders, representing an annualised dividend yield of 3.5% on the last closing price. FGX Chairman Jonathan Trollip said the Board was pleased to deliver shareholders a fully franked interim dividend. Following the Company s first nine months of operations, FGX donated $1.6 million to Australian charities, focused on changing the lives of our most vulnerable children, and also paid its first dividend to shareholders. It is very pleasing that the Company is on track to deliver $2.2 million to charities in FY2016, Mr Trollip said. The Board was pleased to begin this calendar year with the announcement of a fully franked interim dividend of 2.0 cents per share, he said.
Performance at Fin 31 December 2015 YTD 1 Year FGX Investment Portfolio* 11.3% 15.2% S&P/ASX All Ordinaries Accumulation Index 0.4% 3.8% Outperformance +10.9% +11.4% *Investment performance and Index returns are before expenses and taxes. Charitable objectives The objectives of the Company are to provide shareholders with an attractive investment and to provide a source of funding for Australian charities, with a focus on children at risk. The Company has initially partnered with 14 designated charities that provide a significant benefit to Australian children. These charities are: Act for Kids, Australian Children s Music Foundation, Australian Indigenous Education Foundation, Lighthouse Foundation, Kids Helpline, Raise, the Mirabel Foundation, Variety, United Way, Father Chris Riley s Youth Off The Streets, Youth Focus, Giant Steps, Debra and Diabetes Kids. As at 31 December 2015, FGX is on track to deliver a $2.2 million donation for the 2016 financial year. The 2016 financial year donation will follow a $1.6 million donation for the nine months of operation in the year ended 30 June 2015. Dividends The Board of Directors announced on 12 January 2016 a fully franked 2.0 cents per share interim dividend to shareholders. The interim dividend announcement follows the payment of the Company s final fully franked dividend of 2.0 cents per share on 23 October 2015. FGX optionholders must exercise their options before 7 April 2016 to receive the interim dividend. The Board is committed to paying an increasing stream of fully franked dividends to shareholders, provided the Company has sufficient profit reserves and franking credits and it is within prudent business practices. The Company s ability to generate franking credits is dependent upon the receipt of franked dividends from investments and the payment of tax. Options The Company issued one attaching option to each share subscribed for in the capital raising. The options have an exercise price of $1.10 per share and can be exercised at any time on or before 16 September 2016. During the period, 3,051,051 options were exercised for a total consideration of $3,356,134, with the remaining balance of outstanding options being 178,373,156. Investment portfolio The allocation to the 16 fund managers has been structured to provide a spread between three broad equity strategies: long equities, absolute bias, market neutral, and cash. As at 31 December 2015, the Company is currently 49.5% long equities, 24.2% absolute bias, 17.1% market neutral and 9.2% cash.
Asset allocation as at 31 December 2015 manager Investment Strategy Regal s Management Bennelong Australian Equities Partners Regal Australian Long Short Equity % of assets Long equities 10.3% Bennelong Australian Equities Long equities 10.2% Large/Mid Cap s (split out below) 10.1% Paradice Investment Paradice Australian Equities Mid Cap Long equities 5.4% Wilson Asset Management (International) Paradice Large Cap Long equities 4.7% Wilson Asset Management Equity Absolute bias 8.3% Watermark s Management Watermark Absolute Return Market neutral 7.8% Eley Griffiths Group Eley Griffiths Group Small Companies Long equities 7.6% Tribeca Investment Partners Tribeca Alpha Plus Absolute bias 7.0% Cooper Investors Cooper Investors Australian Equites Long equities 5.0% Optimal Management Australia Optimal Australia Absolute Trust Market neutral 4.8% Sandon Capital Sandon Capital Activist Absolute bias 4.0% LHC Capital Discovery Asset Management Bennelong Long Short Equity Management LHC Capital Australia High Conviction Discovery Australian Small Companies Absolute bias 3.6% Long equities 3.5% Bennelong Long Short Equity Market neutral 3.1% Smallco Investment Manager Smallco Broadcap Long equities 2.7% Lanyon Asset Management Lanyon Australian Value Absolute bias 1.5% Qato Capital Qato Capital Market Neutral L/S Market neutral 1.3% Cash and Term Deposits Cash 9.2% Investment strategy allocation (% of assets as at 31 December 2015) Absolute bias 24.2% Cash 9.2% Market neutral 17.1% -ENDS- Long equities 49.5% Long equities Market neutral Absolute bias Cash
Managers Charities Service Providers
About Future Generation Investment Company Limited Future Generation Investment Company Limited (ASX: FGX) offers investors the opportunity to gain unprecedented access to prominent Australian fund managers through a single ASX-listed investment vehicle and also support Australian charities focused on children at risk. The Company offers diverse exposure to Australian equities through a range of different investment styles and strategies employed by its fund managers. Future Generation Investment Company Limited charges 0.0% management fees and 0.0% performance fees and donates 1.0% of its assets each year to Australian charities supporting children at risk. The Company s investment objectives are to provide a stream of fully franked dividends, to achieve capital growth, and preserve shareholder capital. For more information visit www.futuregeninvest.com.au Together, we are investing in Australia s future generation For further information, please contact: Jonathan Trollip Chairman (02) 9247 6755 Geoff Wilson Director (02) 9247 6755 James McNamara Head of Corporate Affairs 0416 734 080