FUTURE GENERATION GLOBAL LIMITED — Net Asset Value 2017

Apr 12, 2017

Investment Update & Net Tangible Assets Report

As at 31 March 2017

Net Tangible Assets (NTA) figures

NTA before tax	110.97c
NTA after tax and before tax on unrealised gains	111.15c
NTA after tax
	110.46c

~~*~~ The above figures are not diluted for 272,469,114 options on issue with an exercise price of $1.10.

Portfolio

In March, the investment portfolio increased 2.1%, outperforming the MSCI World Index (AUD) by 0.4%. The spread between the three broad equities strategies is currently 54.0% long equities, 33.7% absolute bias, 4.0% quantitative strategies and 8.3% cash. On 1 April 2017 we fully redeemed our positions in the Tribeca Global Total Return Fund and the Insync Global Titans Fund.

Fund manager Investment	Strategy	% of assets
Magellan Asset Management Magellan Global Fund	Long equities
		10.3%
Ironbridge Capital Management Ironbridge Global Focus Fund	Long equities
		9.7%
Cooper Investors Cooper Investors Global Equities Fund (Unhedged)	Long equities
		8.9%
Antipodes Partners Antipodes Global Fund	Absolute bias
		8.7%
VGI Partners VGI Partners Funds	Absolute bias
		8.0%
Marsico Capital Management Marsico Global Fund	Long equities
		7.2%
Nikko Asset Management Australia Nikko AM Global Share Fund	Long equities
		6.1%
Manikay Partners Manikay Global Opportunistic USD Fund	Absolute bias
		5.4%
Ellerston Capital Ellerston Global Mid SmallCapFund	Long equities
		4.8%
Morphic Asset Management Morphic Global OpportunitiesFund	Absolute bias
		4.7%
Neuberger Berman Australia Neuberger Berman Systematic Global EquitiesTrust	Quantitative strategies
		4.0%
Avenir Capital Avenir Value Fund	Absolute bias
		4.0%*
Paradice Investment Management Paradice Global Small Mid CapFund Unhedged	Long equities
		3.6%
Cooper Investors Cooper Investors Asian Tiger Fund	Long equities
		3.4%
Antipodes Partners Antipodes Asia Fund	Absolute bias
		2.9%
Cash and Term Deposits	Cash
		8.3%

• Includes committed application which has been processed.

Shareholder Presentations & Investment Forum

Beginning Monday 15 May 2017 in Melbourne, we will be holding nationwide Shareholder Presentations for the Future Generation companies. For full details and to RSVP, visit www.futuregeninvest.com.au/RSVP .

Future Generation will also hold its inaugural Investment Forum in Sydney on Tuesday 16 May 2017. The forum will provide investors access to exclusive investment ideas in a series of five-minute presentations from FGX and FGG‟s domestic and global fund managers. For more information and to register, click here.

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Future Generation Global Investment Company Limited

ASX code	FGG
Established	Sept 2015
Gross assets Market cap	$309.9m $293.8m
Share price	$1.06
Net assets per share (before tax)	$1.11
Shares on issue	277,171,269
Options on issue	272,469,114
Fully franked final FY16 dividend	1.0c
Management fees	0.0%
Performance fees Annual donation (% of NTA)	0.0% 1.0%

Investment objectives

• Provide a stream of fully franked dividends

• Achieve capital growth

• Preserve shareholder capital

Company overview

Future Generation Global Investment Company Limited (ASX: FGG) is Australia‟s first internationally focused listed investment company (LIC) with the dual objectives of providing shareholders with diversified exposure to selected global fund managers and changing the lives of young Australians affected by mental illness.

Chairman

Belinda Hutchinson

Founder and Director

Geoff Wilson

Chief Executive Officer

Louise Walsh

Directors

Frank Casarotti Karen Penrose Susan Cato Sarah Morgan

Investment Committee

Chris Donohoe, Amanda Gillespie, Aman Ramrakha, Sean Webster and Geoff Wilson

Company Secretaries

Kate Thorley and Mark Licciardo

Head of Corporate Affairs James McNamara

Level 11, 139 Macquarie Street, Sydney NSW 2000 I GPO Box 4658 Sydney NSW 2001 I ABN: 52 606 110 838 Phone 02 9247 9202 I Fax 02 9247 6855 I info@futuregeninvest.com.au I www.futuregeninvest.com.au

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Investment Update & Net Tangible Assets Report

As at 31 March 2017

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Investment strategy allocation (% of assets)

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Cash
8.3%
Absolute bias
33.7% Long equities
54.0%
Quantitative
strategies
4.0%
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Long equities Quantitative strategies Absolute bias Cash

Long equities – investing in a portfolio of equities based on the expectation the underlying equities will increase in value within a certain time horizon. Each equity represents an ownership claim in an underlying company which is generally listed on a public stock exchange.

Quantitative strategy – a style of investment management where quantitative techniques are used to analyse markets in order to ascertain information about future price movements. These are generally rules-based and applied in a systematic manner. A quantitative strategy seeks to replicate a fundamental investor without human biases influencing investment decisions.

Absolute bias – an investment strategy that seeks to generate returns, irrespective of the performance of traditional asset classes. These strategies use innovative investment techniques to profit from rising and falling markets, providing portfolio protection in the event an equity market experiences a significant fall.

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Fund Managers
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Charities

Level 11, 139 Macquarie Street, Sydney NSW 2000 I GPO Box 4658 Sydney NSW 2001 I ABN: 52 606 110 838 Phone 02 9247 9202 I Fax 02 9247 6855 I info@futuregeninvest.com.au I www.futuregeninvest.com.au

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Service Providers

Fund manager in focus: Marsico Capital Management

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About Marsico Capital Management

Founded by Thomas F. Marsico in 1997, Marsico Capital Management, LLC (MCM) is a Denver, Colorado-based, US Securities and Exchange registered investment management firm that manages assets for mutual funds, corporate retirement plans, endowments, foundations, family offices, and other clients. As of 31 March 2017, MCM managed approximately US $2.78 billion in assets within seven investment strategies.

Our investment style

Tom Marsico, MCM‟s founder, Chief Executive Officer, and Chief Investment Officer, has managed large-cap equities since 1979, and has a public investment track record dating to 1988. MCM‟s investment approach emphasises the selection of high-quality global growth companies with compelling potential for long-term capital appreciation. This highconviction approach is expressed through concentrated portfolios. We search for growth globally by evaluating companies in industries around the world to uncover attractive investment opportunities, as well as to understand the competitive landscape on a world-wide basis. MCM‟s investment style and process has been consistent since the founding of the firm and has been employed in a variety of market conditions.

Our market outlook

The post-election rally continued throughout the first quarter of 2017, and the S&P 500 Index delivered its biggest quarterly gain since the end of 2015 as better economic data offset waning investor sentiment in the “Trump trade.” During the quarter, momentum shifted away from sectors expected to benefit from the new administration‟s policies, such as energy and financials, and toward growth sectors expected to benefit from increased economic growth, most prominently including information technology and consumer discretionary.

Market participants seemed to take the Republican Party‟s initial failure to repeal and replace the Affordable Care Act in stride, shifting their attention to proposed tax reform. Many feel that the support for tax cuts is broader and deeper than for health care reform. A successful tax reform plan would likely unleash powerful economic stimulus and provide a boost to the markets. In addition to tax cuts, President Trump could revert to the basics of financial and energy deregulation and infrastructure spending to advance his economic agenda.

Despite the Trump administration‟s health care policy setback, the stock market has forged ahead, bolstered by a strengthening global economy. In the US, the February payroll report was positive and cleared the way for the Federal Reserve to hike rates in March. The market consensus is that we may see two more rate hikes this year if economic data support them. Consumer net worth rose in the first quarter, which suggests that consumer buying power may push US economic growth toward 3%. In addition wages have finally begun to rise, which may usher some people back into the workforce, potentially resulting in an improvement in the labour participation rate. Confidence is strong among both businesses and individuals, which should provide a tailwind for growth. In fact, consumer confidence, as reported by the Conference Board, jumped in March to the highest level in more than 16 years as Americans grew increasingly more optimistic about present and future conditions. Around the world, much of Europe and Asia are seeing faster growth, marking the first synchronised global expansion since the growth period prior to the financial crisis of 2008-2009.

Level 11, 139 Macquarie Street, Sydney NSW 2000 I GPO Box 4658 Sydney NSW 2001 I ABN: 52 606 110 838 Phone 02 9247 9202 I Fax 02 9247 6855 I info@futuregeninvest.com.au I www.futuregeninvest.com.au

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As at 31 March 2017

Investment Update & Net Tangible Assets Report

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Following the US Presidential election, many of the information technology stocks that we held were indiscriminately sold by other market participants as a source of cash as the market rotated to sectors that were expected to benefit more from President Trump‟s pro-growth agenda. We held firm to our positioning and our patience was rewarded as the market returned to growth stocks in the Information technology sector with strong underlying fundamentals.

As of quarter-end, a significant portion of the Fund‟s net assets was invested in the information technology, consumer discretionary and health care sectors, with additional select investments in the financials, industrials, materials and consumer staples sectors.

Performance as at 31 March 2017

	1 MO	YTD	1 YR	3 YR	5 YR	Since inception 29/6/2007	Expense ratio3
Marsico Global Fund	3.83%	10.83%	8.33%	3.83%	8.95%	6.75%	1.69%
MSCI All Country World Index1	1.22%	6.91%	15.04%	5.08%	8.37%	3.36%
Lipper Global Multi-Cap Growth Index2	2.13%	8.67%	13.80%	4.74%	8.13%	4.23%

Top stocks and their weighting

Top stocks and their weighting
Company	% of Portfolio	% Total return (31/12/16 – 31/3/17)
Tencent Holdings Ltd.	5.51	11.22
Facebook, Inc. Class A	5.38	17.20
Alibaba Group Holding Ltd. Sponsored ADR	4.87	16.56
adidas AG	4.35	13.72
Amazon.com, Inc	4.16	12.22

For more information, visit marsicofunds.com.

• 1 The MSCI All Country World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. Sources of foreign exchange rates may be different between the Fund and the benchmark. The index is unmanaged and not available for direct investment. For comparison purposes, it should be noted that the MSCI All Country World Index does not charge fees and has no expenses.

• 2 Lipper Inc., A Reuters Company, is a nationally recognized organization that measures the performance of mutual funds within a universe of funds that have similar investment objectives. Returns are historical with capital gains and dividends reinvested. The Lipper Global Multi-Cap Growth Index is an unmanaged index that, by portfolio practice, invests in a variety of market capitalization ranges without concentrating 75% of its equity assets in any one market capitalization range over an extended period of time. You cannot invest directly in an index.

• 3 As of the Fund's 1/30/17 prospectus; 1.69% gross, 1.60% net. Marsico Capital Management, LLC, the investment adviser to the Fund (the "Adviser"), has entered into a written expense limitation and fee waiver agreement under which it has agreed to limit the total expenses of the Global Fund (excluding interest, taxes, acquired fund fees and expenses, litigation, extraordinary expenses, brokerage and other transaction expenses relating to the purchase or sale of portfolio investments) to an annual rate of 1.60% of the average net assets until January 31, 2018. This expense limitation and fee waiver agreement may be terminated by the Adviser at any time after January 31, 2018 upon 15 days prior notice to the Fund and its administrator, provided that no such modification will be made in a manner inconsistent with the terms of the current prospectus. The Adviser may recoup from the Fund fees previously waived or expenses previously reimbursed by the Adviser with respect to that Fund pursuant to this agreement (or a previous expense limitation agreement) if: (1) such recoupment by the Adviser does not cause the Fund, at the time of recoupment, to exceed the lesser of (a) the expense limitation in effect at the time the relevant amount was waived and/or reimbursed, or (b) the expense limitation in effect at the time of the proposed recoupment, and (2) the recoupment is made within three fiscal years after the end of the fiscal year in which the amount was waived or reimbursed.

Level 11, 139 Macquarie Street, Sydney NSW 2000 I GPO Box 4658 Sydney NSW 2001 I ABN: 52 606 110 838 Phone 02 9247 9202 I Fax 02 9247 6855 I info@futuregeninvest.com.au I www.futuregeninvest.com.au

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As at 31 March 2017

Investment Update & Net Tangible Assets Report

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Charity in focus: Black Dog Institute

Black Dog Institute is dedicated to understanding, preventing and treating mental illness. We aim to create a world where mental illness is treated with the same level of concern, immediacy and seriousness as physical illness; where scientists work to discover the causes of illness and new treatments; and where discoveries are immediately put into practice through health services, technology and education.

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Black Dog Institute and FGG

FGG is helping to establish Black Dog‟s Youth Centre for Research Excellence in Suicide Prevention, aimed at reducing suicide attempts and deaths in young people. This research centre will develop solutions that lower suicide risk, with a focus on utilising technologies popular with young people, such as smartphones and social media.

We have begun a trial in two hospitals of a mobile-based messaging system which provides follow-up care for young people upon hospital discharge after a suicide attempt – a key risk period for a repeat attempt.

We are also developing an app which collects information about people‟s social networks through Bluetooth „handshakes‟. Young people at risk of mental health problems begin to withdraw and operate on the edges of social groups, rather than being centrally connected. We hope this technology will enable early identification of young people experiencing a tough time, so that we can reach out to them. Working with a NSW high school, we have trialled this app to ensure the technology works and that the trial is feasible.

We will continue to develop these interventions into effective tools to reduce youth suicide.

Q&A with Professor Helen Christensen, Chief Scientist and Director

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What impact will the FGG funding have on your organisation? Black Dog is a recognised leader in eMental Health (the use of technology in mental health). FGG support enables us to test new ideas that may be game changers of the future. Without FGG, this exciting research at this early stage of development simply wouldn‟t happen. FGG‟s funding will also support the great minds of three early career researchers working on these projects. It is critical to build the capacity of the next generation of experts in youth mental health and suicide prevention.

What is the biggest challenge for the organisation? A big challenge is the low propensity of help-seeking among young people. This can be due to stigma, cost and distance from services. We have effective therapies and interventions, but up to two-thirds of people don‟t seek help. We‟ve also identified that we‟re not providing the sorts of services that engage young people. This is a challenge, but we are developing new ways to do this with technology.

What’s a burning issue for youth mental health in Australia? Around 560,000 young Australians experience mental health problems each year. Suicide is the leading cause of death in young people. We also know that three-quarters of mental illnesses emerge before age 25. Prevention and early intervention is therefore critical. We need better ways to identify young people at-risk much earlier, so we can deliver effective, evidence-based programs that reach young people before the onset of life-limiting, long term mental illness.

Whose work in the mental health space inspires you?

What a question! Clear answer though! The young people themselves, many who have experienced problems during adolescence, and who are now driven to help others. Without naming names, (except big shout out to Shai) the young people associated with Black Dog‟s BiteBack services are inspiring and fun. There are many young Australians who are on a mission to do good. Nicole Gibson, the youngest mental health commissioner is one of those. But I also get excited by the scientists and engineers working in my field – one of the most impressive is Tom Insel, at Google, Verily.

For more information visit www.blackdoginstitute.org.au

Level 11, 139 Macquarie Street, Sydney NSW 2000 I GPO Box 4658 Sydney NSW 2001 I ABN: 52 606 110 838 Phone 02 9247 9202 I Fax 02 9247 6855 I info@futuregeninvest.com.au I www.futuregeninvest.com.au

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