Future Generation Investment : June 2022 Investment Update

onlyDear fellow shareholder, Investment portfolio performance

Rising inflation, interest rate hikes, increased commodity prices and continued supply chain distributions saw investor sentiment weighed down in June byfurther fears of a slowdown in economic growth globally.

The Future Generation Global (ASX: FGG) investment portfolio decreased 3.8%* in June, outperforming the MSCIAC World Index (AUD) which fell 4.8% for the month. The Future

useGeneration Australia (ASX: FGX) investment portfolio decreased 9.2%* for the month, outperforming the S&P/ASX All Ordinaries Accumulation Index which fell 9.4%.

Since inception, the Future Generation Australia investment portfolio has increased 8.0%* per annum and the Future Generation Global investment portfolio has increased 6.5%* per annum. The investment portfolios' performance has been achieved with less volatility than their indexes, as measured by standard deviation.

personalNew Future Generation Global Social Impact partners We are nearing the end of ourExpression of Interest (EOI)process for Future Generation Global and look forward to sharing our new social impact partners with you at the beginning of August. We've identified prevention and wellbeing as the area where our contribution can punch above its weight in positively impacting youth mental health. We're excited to partner with 14 prevention-focused

rganisations who have ambitious impact growth strategies and have been carefully selected from 175+ applicants from all over Australia. If you'd like to see how our support has helped positively impact young people's lives, have a browse of Our Impact Story So Far.

*Investment portfolio performance is before expenses, fees and taxes to compare to the relevant index which is also before expenses, fees and taxes.

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Upcoming Future Generation Investor Webinar 27 July Pleaseregister hereand join our upcoming Future Generation Investor Webinar on Wednesday, 27 July at 3:00pm to hear from Geoff Wilson AO, Chairman and Chief Investment Officer (CIO) ofWilson Asset Managementand renowned Fund Manager Peter Cooper, Director, CIO and Portfolio Manager atCooper Investors, who manages funds for Future Generation Australia and Future Generation Global. I will also speak to Jane Rowe OAM, Founder and CEO

of The Mirabel Foundation, an impact partner of Future Generation Australia whose mission is to break the destructive cycle of addiction and disadvantage. Geoff and Peter will provide their market outlook and top stock picks, while Jane will provide an update on the Foundation's work.

Have your say - Donation Voting

As part of the Future Generation family, you know that our unique model of investment and social returns was established to meet the increasing need to do more for our communities. By allocating your donation, you can support our partner organisations through a reliable source of funds that allows them tooperate with confidence. Voting is open from 2 September until 30 September and we encourage you to have your say. We will share more information on how to vote in the coming weeks.

We hope you enjoy this month's Meet the Managerwith Mark Landau Co-Founder, Joint Managing Director and CIO of L1 Capital and our Q&A Interviewwith Andrew Frakes, Principal of Giant Steps.

Thank you and best wishes,

Caroline Gurney

CEO, Future Generation

June 2022 Investment Update

$52.9m

S O C I A L

I N V E S T M E N T

T O 2 0 2 1

$5.3m	$6.4m
F u t u r e	F u t u r e
G e n e r a t i o n	G e n e r a t i o n
A u s t r a l i a 2 0 2 1	G l o b a l 2 0 2 1
2021 total social	$11.7m
investment
2021 management	Total fees forgone
fees, performance fees	since inception to
and services forgone	2021
$24.0m	$97.5m

Investment portfolio performance

Fund manager allocations

0% management fees

0% performance fees

Net tangible assets	Gross assets	Profits reserve
before tax		(per share)

only

123.23c

$503.8m

29.0c

2.8%

Net tangible assets

Market

Dividends paid

3.1 %

after tax and

capitalisation#

since inception

3.4%

before tax on

(per share)

unrealised gains

4.9%

122.35c

$458.4m

33.3c

useNet tangible assets

6.1 %

Volatility^

2021 fully franked

after tax

full year dividend

6.3%

121.04c

11.9%

6.0c

S&P/ASX All Ordinaries

Accumulation Index: 14.5%

#Based on the 30 June 2022 share price of $1.135 per share and 403,867,511 shares on issue.

The above NTA figures are not adjusted for the 400,206,835 options on issue which are trading under the ASX code FGXO with

an exercise price of $1.48 per option and expire on 28 April 2023.

^V latility is measured by standard deviation.

Since

inception

11.9% fund manager breakdown

Investment portfolio performance

1

Fin

1

3 yrs

5 yrs

%pa

at 30 June 2022

mth

YTD

yr

%pa

%pa

(Sept-14) Clime Investment Management

2.7%

Vinva Investment Management

2.5%

Future Generation Australia

-9.2%

-16.1%

-9.2%

6.2%

7.7%

8.0%

Centennial Asset Management

2.4%

S&P/ASX All Ordinaries Accumulation

-9.4%

-11.5%

-7.4%

3.8%

7.2%

6.5%

Index

Investment portfolio performance is before expenses, fees and taxes to compare to the relevant index which is also

before expenses, fees and taxes.

personal

Cash and cash

equivalents

0.5%

1 1 .9%1 4.1 %

6.6% 6.7% 6.9%

Smallco Investment Manager	1.7%
QVG Capital	1.4%
Lanyon Asset Management	1.2%

1 3.9%

1 2.8%

Long equities	47.3%
Absolute bias	45.1%
Market neutral	7.1%
Cash	0.5%

Future Generation Investment Company Limited (ASX: FGX)

ABN: 97 063 935 553

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Investment portfolio performance

Fund manager allocations

0% management fees

0% performance fees

Net tangible assets	Gross assets	Profits reserve
before tax		(per share)

only	132.53c	$529.5m	45.3c
Net tangible assets	Market	2021 fully franked
	after tax and	capitalisation#	full year dividend
	before tax on
	unrealised gains

		131.33c	$419.9m		6.0c
use
	Net tangible assets	Volatility*			ESG aware^
		after tax				(of the portfolio)
		130.65c	9.5%			99.1%
		MSCI AC World
			Index (AUD): 10.6%
	#Based on the 30 June 2022 share price of $1.065 per share and 394,318,455 shares on issue.
	*Volatility is measured by standard deviation.
	^As reported in the 2021 Annual Report.
								Since
								inception
	Investment portfolio performance	1	Fin	1	3 yrs	5 yrs	%pa
	at 30 June 2022	mth	YTD	yr	%pa	%pa	(Sept-15)
	Future Generation Global	-3.8%	-21.0%	-19.5%	2.6%	6.9%	6.5%
	MSCI AC World Index (AUD)	-4.8%	-16.0%	-8.6%	6.7%	9.3%	8.7%
	Investment portfolio performance is before expenses, fees and taxes to compare to the relevant index which is also
	before expenses, fees and taxes.
personal				ABN: 52 606 110 838
	Future Generation Global Investment Company Limited (ASX: FGG)
r

	Cash and cash
	equivalents
	3.6%
3.7%	1.0%
5.8%	13.9%

6.1%

13.6%

6.8%

7.8%

11.5%

8.1%

8.3% 9.8%

Long equities	73.4%
Absolute bias	23.0%
Cash	3.6%

Meet the Manager

onlyMark Landau, Co-Founder, Joint Managing Director & Chief Investment Officer of L1 Capital

useYour performance has been strong at a time when many others have floundered. What have been the most notable contributors?

One of our biggest contributors has been the Canadian energy sector. Stocks like MEG Energy (TSE: MEG),

personalCenovus Energy (NYSE: CVE) and Teck Resources (NYSE: TECK) have all been really strong contributors, even though they're not stocks that are written about in the papers every day.

The other major contributor, where we've clearly had different positioning to most investors, has been our shorts in the U.S. profitless tech sector, along with shorts in several "COVID winner" stocks, like Peloton (NASDAQ: PENTON) and Logitech (SWX: LOGN), and on US retail stocks, like Williams-Sonoma (NYSE: WSM). All of these shares are down between 30% to 80% over the past six months.

In general, our performance tends to have low correlation with the market and peers. We hold a very different set of stocks and we are exposed to different themes, which is what you would expect from a contrarian value manager.

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When we spoke to you at our Future Generation webinar in April, you were pretty pessimistic about the market. Has your outlook changed? What do you see happening in equity markets over the next 1, 3 and 5 years?

In a very short-term sense - say, over the next few months - we're still cautious. We think that the market will remain weak and erratic, given there are numerous fears that won't be resolved quickly. These are things like Central Bank policy tightening, a potential US recession and the impact of the Russia-Ukraine situation. On a one- year view, we're a little bit more positive because we think that some of the excessive fear and pessimism that has been driving markets will start to reduce. Central Banks should be able to stop tightening because we think inflation is peaking at the moment; the concerns about a US recession will lessen; and China will reopen, which will be positive for equity markets.

But that's not to suggest that the market will return to a bull market. We don't think markets will go dramatically higher - or lower - on a one-year,three-year or five-year view. Equity returns have been very strong over the past 30 years. We've typically seen a 10% return per annum - and it's been the same for property and bonds. A big driver of that has been falling interest rates, where rates have gone from roughly 18% to 0% as of a year ago. Now that that period has come to an end, it's going to be much harder to generate attractive real returns. A lot of the return that you'll need to find won't be available as the rising tide stops lifting all the boats. It will have to come through alpha, rather than beta, which is finance lingo for excess returns versus market returns. Unfortunately, I think the best years for investors are probably behind us. It will, however, still be possible to find attractive returns via active management - whether you do that yourself or whether you do it through a vehicle, like Future Generation.

What sort of returns do you think are reasonable to expect going forward?

For equities, on a five-year view, I would say around a 5% to 7% per annum (p.a.). nominal return is probably more realistic than the historical 10% p.a. And if we believe that inflation is likely to be above the 2% p.a. that the Central Banks have been targeting, that means that real returns are only a few percent positive. You might be up 5% to 7% p.a. on paper, but you're only going up slightly in terms of your standard of living.

Why is managing Future Generation money important to you?

I think that we are in an incredibly privileged position, where we're able to help a large number of people through the charities that Future Generation supports. Seeing the personal stories and the changes that Future Generation Australia makes on a day-to-day basis for people who've been doing it really tough is the part that we get enormous satisfaction from. Obviously, we do a lot of charity ourselves on a personal level, but to be able to do it on a much larger scale, positively impacting so many more charities, is what excites us.

To keep reading please read the full article here.

The Future Generation companies provide exposure to leading Australian and global fund managers

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Future Generation Australia fund managers

Future Generation Global fund managers