Future Generation Global Raises Dividend After 20.8% Portfolio Surge
Future Generation Global Limited has reported a 20.8% increase in its investment portfolio over the past year, prompting a boost in its fully franked interim dividend to 4.0 cents per share. This performance outpaces global market averages and underscores the company's sustainable investment approach.
- Investment portfolio grew 20.8% in 12 months to June 2025
- Interim fully franked dividend increased to 4.0 cents per share
- Dividend yield of 5.1%, grossed-up yield of 7.3%, well above market averages
- Total shareholder return of 22.0% including franking credits
- Ongoing social investment program totals $50.5 million since inception
Strong Portfolio Performance Drives Dividend Increase
Future Generation Global Limited (ASX – FGG) has announced a robust 20.8% growth in its investment portfolio for the 12 months ending 30 June 2025. This performance notably outperformed the MSCI AC World Index (AUD) by 2.8%, reflecting the company's disciplined investment strategy and the expertise of its pro bono fund managers.
As a direct result of this strong portfolio growth, the Board has increased the fully franked interim dividend to 4.0 cents per share. This translates to an annualised dividend yield of 5.1%, or 7.3% when grossed up for franking credits, significantly higher than the average yields of 1.6% for global equities and 1.2% for US equities. The company has a track record of increasing dividends annually for six consecutive years, underscoring the sustainability of its business model.
Balancing Growth, Income, and Social Impact
Beyond delivering strong financial returns, Future Generation Global continues to integrate social impact into its core mission. In 2025, the company will contribute $6.6 million to its social impact partners, bringing total social investments since inception to $50.5 million. This commitment is supported by the unique fee waiver arrangement with its fund managers, who forgo management and performance fees estimated at $10.7 million annually, enabling more resources to flow to social causes.
Chair Jennifer Westacott AC highlighted the dual focus on delivering consistent income and capital growth while making a meaningful difference in the community. CEO Caroline Gurney emphasized the portfolio’s risk-adjusted returns, achieved with less volatility than the broader market, even amid global market uncertainties.
Looking Ahead – Confidence Amid Volatility
Future Generation Global’s investment portfolio has grown at an average rate of 9.9% per annum since its 2015 inception, with volatility measures indicating lower risk compared to market benchmarks. The company’s disciplined approach, leveraging 16 leading fund managers focused on fundamental analysis, positions it well to continue delivering outperformance over the medium to long term.
The Dividend Reinvestment Plan remains active without discount, offering shareholders an opportunity to compound their holdings. With a strong operating profit before tax of $39.0 million and after tax of $27.4 million, Future Generation Global appears well placed to sustain its growth trajectory and social commitments.
Bottom Line?
Future Generation Global’s blend of strong returns, rising dividends, and social investment sets a compelling precedent for sustainable investing.
Questions in the middle?
- How will Future Generation Global navigate potential market volatility in the coming year?
- What impact will the ongoing fee waiver model have on long-term fund manager engagement?
- Can the company maintain its dividend growth streak amid changing global economic conditions?
