Fortuna Strategic Investments (ASX: FSI) held its Annual General Meeting on 29 September 2026, with Chairman Dominic McGann addressing shareholders on a period of both significant challenges and strategic progress. Fortuna Strategic Investments (FSI) is an investment company primarily focused on providing shareholders with fully franked dividends, aiming for growth exceeding inflation by investing in high-quality business franchises. McGann acknowledged a challenging prior financial year (FY2026), marked by negative portfolio performance and underperformance against the ASX All Ordinaries Index, which regrettably led to a decrease in shareholder value. Despite this, the Board maintained the interim dividend and increased the final dividend, fulfilling its core tenet of providing reliable, fully franked income, with a current annual dividend growth rate of 4.7% against a CPI annualised growth of 2.8%.
Since 30 June 2026, the company has seen a pleasing recovery in its portfolio performance. By the end of August 2026, FSI’s Net Tangible Assets (NTA) had increased by 4.1%, or 7.5% after accounting for the payment of the final dividend of 5.3 cents. This recovery, driven by the strong performance of portfolio companies, validates the manager’s view that the previous year’s sell-off was overdone. While the portfolio’s full recovery is ongoing, internal forecasts remain promising for long-term returns.
A significant strategic decision involved the maturity of the FSI Convertible Notes (ASX: FSIGA). To avoid selling down the portfolio at an inopportune time, the Board opted to extend the convertible notes rather than pursue a new offering. This proposal was put to noteholders on 7 September 2026 and received strong support, with 87.1% voting in favour. Consequently, the previously scheduled resolutions for a new convertible note offering were withdrawn. FSI also undertook an on-market buy-back, purchasing 1,437,136 notes, representing approximately 19.4% of the register, with the intent to cancel them, thus providing liquidity for noteholders wishing to exit.
Looking ahead to FY2027, the investment environment is anticipated to remain volatile due to persistent inflation, geopolitical uncertainty, and emerging technological shifts. FSI’s strategy will continue to focus on fundamental analysis, prioritising businesses with strong economics and high-quality franchises that can generate predictable, above-average economic returns for superior long-term investment performance.
