1 October we become SureStone CapitalSame team, same ABN. Our website and email addresses move to surestone.com.au.
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Key points:
Strong total shareholder returns and 11th consecutive year of higher fully franked interim dividendsDiversified fund-of-funds structure with pro bono managers and no fees to investorsUnderweight banks and mega-cap tech, with a tilt to small and mid-caps and AI supply-chain beneficiaries
Lee Hopperton, CIO of Future Generation states that Future Generation Australia and Future Generation Global each deliver total shareholder returns of more than 20% over the past year, driven by portfolio performance, narrowing discounts to NTA and fully franked dividends. Hopperton notes that both listed investment companies prioritise capital preservation and steady income, enabling an increased interim dividend for the 11th consecutive year and supporting inflation-beating income for shareholders.
Hopperton highlights a highly diversified fund-of-funds model using Australian and global managers who work pro bono, with no management or performance fees charged to investors. This structure, in Hopperton’s view, underpins sustainable returns and supports a strong balance sheet. Hopperton argues that market concentration in Australian banks and global mega-cap tech heightens risk, so Future Generation is currently underweight banks and large-cap technology, with a tilt towards small and mid-cap companies and a broader range of strategies.
On positioning, Hopperton states that managers are seeking AI-related opportunities beyond the mega-cap leaders, favouring areas such as data centres, energy transmission, infrastructure and commodities tied to electrification, including copper and rare earths. Hopperton also stresses the importance of Future Generation’s philanthropic model, which donates 1% of assets annually to youth and women-focused charities in Australia.
