Future Generation Global Raises Dividend After 20.8% Portfolio Surge
Future Generation Global has reported a strong 20.8% investment portfolio return for the year ending June 2025, prompting an increase in its fully franked interim dividend to 4.0 cents per share. This marks the sixth consecutive year of dividend growth for the ASX-listed investment company.
- Investment portfolio outperformed MSCI AC World Index by 2.8%
- Fully franked interim dividend increased to 4.0 cents per share
- Annualised dividend yield of 5.3%, grossed-up yield of 7.6%
- Total shareholder return of 22.0% including franking credits
- Sustained dividend growth over six years since 2015 inception
Strong Portfolio Performance Drives Dividend Growth
Future Generation Global (ASX, FGG) has announced a robust 20.8% return on its investment portfolio for the 12 months ending 30 June 2025, outperforming the MSCI AC World Index (AUD) by 2.8%. This solid performance underpins the company’s decision to increase its fully franked interim dividend to 4.0 cents per share, reflecting an annualised yield of 5.3% and a grossed-up yield of 7.6%, well above average global equity market yields.
The company’s ability to consistently deliver above-market returns has allowed it to increase dividends every year for the past six years, a testament to its sustainable business model. Since its 2015 listing, Future Generation Global has paid a total of 48.7 cents per share in dividends, including franking credits, providing shareholders with a reliable income stream alongside capital growth.
Balancing Risk and Return Through Strategic Management
Future Generation Global’s investment committee attributes the strong performance to a carefully constructed portfolio managed by 16 leading fund managers who waive their fees, enabling the company to donate 1% of its net tangible assets annually to social impact partners. The portfolio has delivered a 9.9% annualised return since inception with lower volatility than the broader market, highlighting a disciplined approach to risk management.
CEO Caroline Gurney highlighted the strategic adjustments made earlier in the year and the disciplined investment processes as key factors in navigating volatile global markets. This approach not only aims to sustain long-term value creation for shareholders but also supports the company’s commitment to social impact investing.
Social Impact and Philanthropy as Core Pillars
Future Generation Global stands out for its dual focus on financial returns and social impact. The company channels a portion of its returns to not-for-profit organisations focused on youth mental health and wellbeing. In 2024, it launched Future Generation Women, Australia’s first philanthropic women’s investment fund, further cementing its commitment to social causes alongside delivering shareholder value.
Chair Jennifer Westacott AC emphasized that the company’s sustainable business model continues to provide consistent income and capital growth while making a tangible difference in the community. This alignment of investment performance with social responsibility may appeal to investors seeking both financial and ethical returns.
Bottom Line?
Future Generation Global’s blend of strong returns, rising dividends, and social impact positions it well; but sustaining this momentum will require navigating evolving market risks.
Questions in the middle?
- Can Future Generation Global maintain its portfolio outperformance amid global market volatility?
- How will the company balance dividend growth with ongoing social impact commitments?
- What impact will the philanthropic Future Generation Women fund have on overall portfolio returns?
