This commitment to an open governance process provides stakeholders with the comfort that Futuregrowth's affairs are being managed in an ethical and disciplined manner, considering prudently determined risk parameters, thereby over time optimising the return to clients' and shareowners' wealth, while ensuring sustainable success and protecting client interests. This philosophy is based on transparency, accountability and responsibility.

Furthermore, in recognition of the need to conduct the affairs of Futuregrowth according to the highest standards of corporate governance, in the interests of both enhancing organisational performance and investor protection, the directors of Futuregrowth endorse the Code of Corporate Practices and Conduct recommended in the King2 Report. The directors are satisfied that Futuregrowth observes and applies both the letter and the spirit of the Code consistently during the period under review.

Futuregrowth is approved by the Financial Services Board as a discretionary financial services provider and is required by regulations to comply with a number of "conditions" that are intended to safeguard investment clients. Included in the requirements is the need for an annual audit report by the external auditors, reporting specifically on the adequacies of the control environment. A further report is required from the compliance officer regarding whether the company has complied with all the "conditions" during the year.

Futuregrowth's corporate governance and control environment is overseen by Old Mutual SA's Audit and Risk Committee. KPMG are our external auditors.

The Futuregrowth Credit Committee concentrates on the management of credit risk in client funds by approving new transactions and monitoring exposures. The Futuregrowth Investment Committee approves and monitors equity investments. The Valuation Committee reviews and approves Futuregrowth's valuation policies and methods.

Futuregrowth has its own Code of Conduct, which covers business principles, ethics, conflicts of interests, personal account dealing rules amongst others. This Code has been modeled on the FSA (UK) and CFA Institute (USA) standards, which are acknowledged to be best global practice. Futuregrowth has signed the CFA Institute's Asset Manager Code of Conduct.

Futuregrowth complies with the Global Investment Performance Standards (GIPS®). eComply are our verifiers. GIPS® is an ethical standard and is regarded internationally as being a "gold standard" of performance reporting verified by a third party.