Future Generation Investment Company Limited

Release of Investor Conference Call Presentation: Future Generation Investment Company Limited (ASX: FGX) had come recently with the investor conference call presentation in which it mentioned about the FGX highlights for 12 months to December 2018. The company announced fully franked 2018 full-year dividend amounting to 4.6 cps. The company posted operating profit before tax amounting to $31.5 million for the year ended December 2018 while in the same period of the previous year it was $27.2 million and the company’s operating profit after tax amounted to $23.2 million while in 2017 it was $22.3 million. The rise in operating profit was on the back of an increase in distribution income received from the deployments with underlying fund managers.
 

FGX Highlights: 12 months to December 2018 (Source: Company Reports)

In February, the FGX investment portfolio witnessed a rise of 4.8%, and the S&P/ASX All Ordinaries Accumulation Index encountered an increase of 6.1% for the month. In FY 2018, the company wrapped up first share purchase plan and placement which together helped in garnering $52.1 million.

Dependency of Future Performance: The future performance is dependent on the performance of the company’s investments, and the performance of these investments gets impacted by investee company-specific factors as well as prevailing market conditions.  The company stated that numerous external factors including economic growth rates, exchange rates, interest rates as well as macro-economic conditions impact the overall equity market and the investments.
Stock Recommendation: On the daily chart of FGX, exponential moving average or EMA has been applied and default values were used for the purposes. After careful observation, it was noted that the company’s stock price has crossed the EMA and moved upwards after the crossover which reflects the bullishness. Therefore, the company’s stock price might encounter a rise moving forward.

Also, the company’s stock has delivered the return of 4.27% in the span of three months which can be considered decent.

Therefore, considering the above factors, we maintain our “Buy” rating on the stock at the current market price of A$1.220 per share (up 1.245% on 22 March 2019).
 

Magellan Global Trust

Resignation and Appointment of Company Secretary: Magellan Global Trust’s (ASX: MGG) responsible entity, Magellan Asset Management Limited, announced that Ms. Marcia Venegas had been appointed to the designation of Company Secretary of the Responsible Entity, effective immediately. The release also stated that Mr. Geoffrey Stirton had resigned from the post of company secretary. Also, Magellan Asset Management Limited had made an announcement that NAV per unit of MGG, as at March 15, 2019, stood at $1.7076. Magellan Global Trust had recently provided fund update as on February 28, 2019. In the update, it had 15% exposure towards internet and eCommerce and 20% towards information technology. For the month of February 2019, the underlying portfolio posted a decent return of 2.0% versus a 5.60% return generated by MSCI World Net Total Return Index (AUD). Long term performance remains respectable with the 12 months return at 10.1% while, since inception, MGG has delivered a return of 13.0% pa against the benchmark return of 11.5%.


Sector Exposure by Source of Revenue (Source: Company Reports)

What to Expect from MGG: Moving forward, the results of MGG’s operations would be affected by numerous factors which includes the performance of investment markets in which it invests. It would continue to make deployments towards the companies and businesses in pursuant with its investment strategy.

Stock Recommendation: On the daily chart of MGG, Moving Average Convergence Divergence or MACD has been applied and default values were used for the purposes. After careful observation, it was noticed that the MACD line has crossed the signal line and moved upwards after the crossover. Therefore, there are expectations that the company’s stock might witness a rise moving forward. 

Also, in the past one year, the company’s stock has delivered the return of 8.55%. Based on foregoing, we maintain our “Buy” rating on the stock at the current market price of A$1.690 per share (up 1.807% on 22 March 2019).   
 

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