Profit Halves but Dividend Grows: What Future Generation Global’s 2025 Results Mean for Investors

Financial Performance Overview

Future Generation Global Limited has released its audited results for the year ended 31 December 2025, revealing a net profit after tax of $48 million, a decline of approximately 50% compared to the previous year. This reduction primarily reflects the accounting treatment of distribution income and unrealised gains, which can cause volatility in reported profits from period to period.

Despite the profit decline, the company’s investment portfolio delivered a respectable 11.5% growth in 2025, albeit slightly trailing the MSCI AC World Index’s 13.4% rise in Australian dollars. The portfolio’s lower volatility and diversified exposure across long equities, absolute return, and quantitative strategies remain key features of its risk-managed approach.

Dividend Policy and Shareholder Returns

In line with its commitment to sustainable income, Future Generation Global declared a fully franked final dividend of 4.0 cents per share alongside a special fully franked dividend of 3.0 cents per share. These dividends reflect the company’s strong franking credit position and profits reserve, which currently covers nearly nine years of dividend payments at the current rate.

The total shareholder return (TSR), including the value of franking credits, was 16.2% for the year, supported by both portfolio performance and a narrowing discount of the share price to net tangible assets (NTA). The NTA before tax increased to $1.74 per share, up from $1.68 in 2024, underscoring the company’s capital growth despite market headwinds.

Portfolio Construction and Manager Changes

The company’s investment committee continues to prioritise diversification, deliberately maintaining an underweight position in mega-cap technology stocks that dominate global indices. Instead, the portfolio favours a blend of 16 global fund managers across different strategies, including a notable allocation to quantitative strategies that contributed nearly 30% of portfolio returns in 2025.

During the year, the company introduced new funds such as the GCQ Flagship Fund and increased exposure to the Vinva International Equity Fund, while exiting others like the Franklin Templeton Global Long Term Unconstrained Fund. These changes aim to enhance diversification and position the portfolio for long-term risk-adjusted returns.

Leadership and Governance Updates

Significant leadership changes occurred with the appointment of Lee Hopperton as Chief Investment Officer in February 2025 and Bonnie Ashton as General Manager in February 2026. Meanwhile, CEO Caroline Gurney stepped down in early 2026 but remains involved as a member of the Women Advisory Committee, ensuring continuity in the company’s strategic direction.

Social Impact Commitment

Future Generation Global reaffirmed its dedication to social impact by donating $6.6 million in 2025 to 14 not-for-profit partners focused on youth mental health and wellbeing. Since inception, the company has contributed a total of $50.5 million, funded in part by pro bono management and performance fees from its underlying fund managers.

The social impact portfolio spans a diverse range of initiatives, from nature-based therapy and youth mentoring to Indigenous mental health programs, reaching millions of young Australians. This dual focus on financial returns and social outcomes remains a defining feature of the company’s mission.