Future Generation Australia's FY2023 Performance and Dividend Announcement

Future Generation Australia Limited (ASX: $FGX) reported a 13.1% increase in its investment portfolio performance for FY2023, outperforming the S&P/ASX All Ordinaries Accumulation Index and the S&P/ASX Small Ordinaries Accumulation Index. The company's operating profit before tax stood at $59.3 million, with an operating profit after tax of $45.8 million for the 12 months ending 31 December 2023. The Board of Directors declared an increased fully franked final dividend of 3.35 cents per share, resulting in a fully franked full year dividend of 6.7 cents per share with 4.5 years of dividend coverage.

Executive Commentary on Future Generation Australia's Performance

Future Generation Australia Chair Mike Baird AO expressed satisfaction with the increased fully franked dividend, attributing it to the strong performance of the investment portfolio. CEO Caroline Gurney highlighted the team's focus on narrowing the share price discount to net tangible assets for shareholders and returning the share price to trade at a premium to net tangible assets. The Investment Committee's selection of leading Australian fund managers with a proven ability to outperform the market and peers over the long term was emphasized, along with the belief in the strong growth potential and attractive investment opportunities in small, mid, and micro-cap companies.

Summary of Future Generation Australia's Announcement

Future Generation Australia's FY2023 performance showcased a 13.1% increase in its investment portfolio, outperforming relevant market indexes. The company's commitment to delivering increased fully franked dividends to shareholders was evident, with a fully franked full year dividend of 6.7 cents per share and 4.5 years of dividend coverage. The executive team's focus on narrowing the share price discount and the Investment Committee's confidence in small, mid, and micro-cap companies for strong growth potential were highlighted. Future Generation Australia's long-term investment portfolio performance and profits reserve have enabled the consistent payment of fully franked dividends to shareholders since inception. The company's social impact initiatives, including the annual investment of $5.2 million to support Australian children and youth at risk, were emphasized, along with the significant savings on management fees, performance fees, and service provider fees forgone to support these initiatives.