Future Generation Australia (FGX) H2 2025 earnings summary

Executive summary

• Portfolio delivered a 14.1% return in FY2025, outperforming the All Ordinaries' 10.1% return year-over-year.

• Dividend yield was 5.3% on share price, grossing up to mid-7% with franking credits.

• Share price trades at an 8-9% discount to NTA, with efforts ongoing to close this gap.

• Over AUD 5.7 million donated to youth-focused charities in 2025, with cumulative donations nearing AUD 50 million.

Financial highlights

• Portfolio outperformed the market by 4 percentage points, driven by strong small and mid-cap performance.

• Fee and expense savings totaled AUD 11.4 million in 2025, enabling significant charitable donations.

• Since inception, annualized return is 9.8%, about 1% above the index, with 17% lower volatility.

Outlook and guidance

• Portfolio positioned defensively with 25% cash amid market uncertainty and potential rate hikes.

• Expectation for interest rate cycle to level out and potential for US rate cuts in the second half of the year.

• Ongoing focus on diversification and risk management to navigate macroeconomic and geopolitical risks.