FGG - Future Generation Global

The Offer provides Shareholders with the opportunity to invest in Australia's first internationally focused LIC with dual objectives of providing Shareholders with exposure to global equities and also helping to improve the lives of young Australians who are affected by mental health issues.

The Company's primary investment objective is to provide Shareholders with long term capital growth. The Company will seek to achieve long term growth by investing the Company's capital with selected Fund Managers who agree to forgo their Management and Performance Fees.

The Company's charitable goal is to help improve the lives of young people with mental health issues by providing financial support to the Designated Charities. The Company intends to make philanthropic investment in three core areas: helping the community understand the issue; enabling investment in research and development; and investing in effective programs and services.

Designated Charities and Shareholders will be able to share the benefit of the Forgone Fees. The aggregate amount donated to the Designated Charities each year will reflect a percentage of the Forgone Fees. The current intention is for the Donation Amount to the Designated Charities to be an amount equal to 1.0% of the Company's average monthly NTA for the relevant financial year.

It is anticipated that FGG will list on the ASX during September 2015.

http://www.futuregeninvest.com.au/global/

Future Generation Global held an estimated profits reserve of 6.8 cents per share as at 30 June 2020, representing 3.4 years of dividend coverage.

The increased fully franked 2.0 cents per share dividend has been achieved through the profits reserve available and the sound risk-adjusted returns of the investment portfolio during an unprecedented period of volatility for equity markets.

In the six months to 30 June 2020, the Future Generation Global investment portfolio outperformed the MSCI AC World Index (AUD) by 4.7%.

Future Generation Global provides shareholders with zero-fee access to leading global fund managers, a diversified and actively managed portfolio of assets, capital growth and fully franked dividends, while investing in Australia’s future generation.

(Hold - cheap international diversification)

That is a very inspiring story. Fund managers returning their commissions to enable a fund to make very sizable donations to valuable charities.
And on top of that a management that has achieved quite good financial returns for investors.
https://futuregeninvest.com.au/wp-content/uploads/2020/08/FGG-dividend-media-release_HY2020.pdf

FGG held its AGM today. Contributing fund managers outline their top picks:

Magellan Asset Management, Kris Webster: Alphabet
Many of Alphabet’s businesses are dominant leaders in large global markets that should experience above-average growth for years to come. Despite its market leadership, we expect Google to continue to take share of advertising from traditional media due to its superior targeting abilities and the high engagement of its services.

Antipodes Partners, Andrew Baud: Capital One
COF has a great record for pricing and risk management, best evidenced by reducing credit limits in August this year. The moat around the bank’s financials is deep, enough so to withstand GFC level loan write-offs whilst still allowing the distribution of half of its current market capitalisation through to FY23 and trading on six times FY23 earnings (i.e. a 16 per cent-plus yield).

Munro Partners, Jeremy Gibson: Danaher
Investing in Danaher is like investing in the picks and shovel makers in the gold rush, rather than trying to predict which gold miner will strike gold. In this instance, the gold rush is towards cures for ailments such as COVID-19. Given Danaher’s strong track record of creating value from acquisitions and the pipeline of growth ahead from both testing and biopharma manufacturing equipment demand brought about by COVID-19, we see many strong years of growth ahead for Danaher.

Nikko Asset Management, Iain Fulton: HelloFresh
As a disruptor in the highly attractive $US7.5 trillion global food segment, in which e-commerce penetration is only 2 per cent, HelloFresh has an excellent opportunity to grow its total addressable market. In terms of the valuation, we believe the total addressable market is underappreciated. Management is rolling out new price points to address different market segments and the marketing spend required to attract and retain customers will decline as a percentage of sales allowing margins to stay high.

Morphic Asset Management, Claudia Kwan: New Oriental Education & Technology
EDU is a market consolidator beneficiary in a growing market with the best-known brand and the widest network footprint. EDU are guiding to 20 to 25 per cent capacity expansion per annum that will be a key driver of top line growth. Rising utilisation rates and average selling prices will drive margin expansion and a strong upward trend in earnings per share.

VGI Partners, Robert Luciano: Olympus Corporation
We think Olympus is a very high quality business, which is dominant in a highly consolidated and growing industry. There is tangible evidence to suggest management are intently focused on modernising the business and improving its efficiency. We think these factors will drive significant long-term earnings growth and attractive shareholder returns.

Ellerston Capital, Bill Pridham: Option Care Health
We consider that OPCH offers long term durable growth opportunities as it offers a better patient outcome at significantly lower costs to the payers –basically a win/win. We expect it to deliver mid to high single digit revenue growth for the foreseeable future which translates into double digit earnings growth as the platform scales. Private equity still owns circa 70 per cent of the business and this is creating an overhang on the stock as the market anticipates further sell downs.

Avenir, Curtis Cifuentes: Sony
Sony’s semiconductor division is today the world’s largest supplier of smartphone image sensors, with image quality improvements being one of the major selling points to smartphone buyers. Sony’s image sensors are industry leading, making them critical suppliers to smartphone manufacturers, including Apple, and the market is not exposed to the commodity dynamics we see in other components like memory.

Marsico Capital, Brandon Geisler: Spotify
Spotify currently generates the large bulk of its revenue from monthly subscription fees, but we think that this is just the beginning of the way in which the company can monetise its substantial user base. We believe Spotify mirrors Netflix prior to gaining appreciation from the investing community, and that we are on the launch pad ready for the stock to take off.


(HOLD - at 1.00%pa MER equivalent, its a cheap way to get access to other ideas that hopefully outpace the index. Also, there are whole subclasses of assets that our local bourse has no exposure to .)

Distribution Amount ... AUD 0.035
Ex Date ......................... 12/10/2022
Payment Date ............. 25/10/2022

On May 8th, 2023, Future Generation Global Investment Company Limited changed its name to Future Generation Global Limited.