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Future Generation Global Investment Company (FGG)

Discussion in 'Listed Investment Companies (LIC) and Trusts (LIT)' started by austing, 17th Sep, 2016.

  1. austing

    austing Well-Known Member

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  2. austing

    austing Well-Known Member

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    Location:
    north maleny
  3. Hodor

    Hodor Well-Known Member

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    hodor
    I don't understand making $6.07m pre tax and $4.48m post tax yet the portfolio decreasing by 2.8%.

    "with a pre-tax profit of $6.07 million and an after tax profit of $4.48 million."

    "FGG’s investment portfolio decreased 2.8% over the 10 months since inception, while the MSCI AC World Index (AUD) fell 1.6%."
     
  4. austing

    austing Well-Known Member

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    Probably a reduction in the value of the underlying assets (NTA) partly due to currency issues and a generally tough year for International funds. And number of shares may have increased due to exercising of options. Just guessing. To be honest I Haven't really looked into the detail of the announcement. Always lots of spin with anything to do with Wilson. It's a long term investment for us so I haven't really paid much attention to this announcement. The LIC is still very young.

    That's why JHMTaylor starting producing his Fundamental Analysis spreadsheets to cut through the spin. See his posts about this same issue with FGX:

    Listed Investment Companies (LICs)

    Listed Investment Companies - Fundamental Analysis

    Anyhow I used the recent drop in FGG to top up around $1.035. The IPO offer was @ $1.10. After taking the free options into account the initial offer's true value (excluding options) was just under $1.08 from memory. So I've purchased FGG cheaper than those who participated in the IPO. Of course it could possibly go lower if there is a correction in international markets at some stage. But that's crystal ball stuff.
     
    Last edited: 23rd Sep, 2016
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  5. austing

    austing Well-Known Member

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    Latest annual report for FGG. I imagine this one may keep plodding along until options eventually expire wth occasional discounted buying opportunities in the meantime. A slow build in the dividend also likely to deter any major enthusiasm at this stage.

    http://www.asx.com.au/asxpdf/20160929/pdf/43bk124hpf0y9v.pdf
     
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