Future Generation An investment that changes the world

Rotary has a long history of driving positive change in our communities by investing in young people. So, it seemed fitting to celebrate Rotary International’s 119th Anniversary with local Rotary clubs in Sydney and the Future Generation group to discuss investment income while supporting youth-focused not-for-profits.

The Future Generation companies – Future Generation Australia (ASX: FGX) and Future Generation Global (ASX: FGG) – are Australia’s first listed investment companies to deliver both investment returns to shareholders and vital funding to Australian not-for-profits, by harnessing the generosity of the
finance community.

Since their founding by legendary fund manager Geoff Wilson AO, the companies have donated $75.8 million to charities that support youth at risk and youth mental health. Many of these charities are organisations that Rotary already champions, such as Raise Foundation, ReachOut, Australian Children’s Music Foundation, Youth off the Streets, and BackTrack Youth Works.

The way in which Future Generation works is that investors buy shares in the companies, via the ASX, and their money is managed by more than 30 leading fund managers, including ‘Hall of Famers’ David Paradice and Phil King. These managers waive all their usual management and performance fees, so that Future Generation can donate one per cent of net assets annually without compromising shareholder returns. Since inception, FGX has yielded 9.1 per cent annually, while FGG has returned 9.0 per cent (as of February 29, 2024).

“At the recent anniversary event, I was proud to host Mr Wilson and Future Generation Australia Chair Mike Baird AO, the former Premier of NSW, who were both recognised as Paul Harris Fellows,” said Rotary Foundation Australia Director PDG Garry Browne AM. “Future Generation is a cause very close to my heart; I have been an investor since inception and an ambassador to the companies.”

Garry said the evening was dominated by discussion on how we can change the lives of those in need, while still ensuring the financial health and security of our families.

“Future Generation Australia’s recent appointment of Philip Lowe as Chair shows that those twin objectives are as important to the Future Generation group as they are to us at Rotary. As the former Governor of the Reserve Bank of Australia said when his appointment was announced, he has always strived to work ‘with organisations that enhance the welfare of Australians’.”

Shareholders with more than a million shares in either Future Generation Australia or Future Generation Global can direct their social investment to any organisations with deductible gift receipt (or DGR) status – including The Rotary Foundation. This means that, together, Rotarians could direct our charitable donations back to The Rotary Foundation, to then be collectively allocated to Rotary projects across the world.

“If the evening proved anything, it is that investments can create more than just financial returns,” said Garry. “Whether through time, money or purposeful investment, each of us can contribute to a brighter future.”

For more information on Future Generation Australia or Future Generation Global, visit futuregeninvest.com.au. For more information on the Rotary Foundation Australia www.rotaryfoundationaustralia.org.au.

MAIN PICTURE: Rotary Foundation Australia Director PDG Garry Browne AM, left, and incoming Rotary Foundation Australia Chair Jessie Harman, recognised Future Generation Australia Chair Mike Baird AO and founding fund manager Geoff Wilson AO, as Paul Harris Fellows at Rotary International’s 119th Anniversary celebrations in Sydney.