There is no finish line

Few funds can boast a 29-year existence, coupled with a GIPS-compliant track record spanning 25 years that have consistently delivered an ungeared return of CPI +7.3% since inception, all while maintaining a very low degree of volatility. 

Over the past decade, Futuregrowth’s Community Property (Comprop) Fund has showcased remarkable resilience in one of the toughest market environments for the South African property sector. The Fund has navigated major headwinds, such as: 

• Load shedding 

• Collapsing water infrastructure 

• High interest rates 

• Low GDP growth 

• Dysfunctional municipalities 

• The July 2021 riots 

• COVID-19 disruptions 

• Deteriorating state-owned enterprises

• High unemployment rates  

Despite these challenges, the Comprop Fund has outperformed the JSE Listed Property Index over the long term, cementing its reputation as a resilient player in the market. 

Futuregrowth Community Property Fund vs the SA Listed Property Index (as at 31 December 2024) 

Source: Futuregrowth/I-Net *Annualised/. It is important to note that Fund returns are ungeared direct property returns in comparison to SA listed property, which are geared returns, and that past performance is not an indicator of future performance. 

Self-sustainability: The key to long-term growth  

Since 2012, many of the fund’s shopping centres have focused on becoming self-sustainable, as a result of deteriorating or non-existent infrastructure in the areas the assets are located. As a result, the fund has made strategic investments in critical systems such as water, sewage, electricity and waste management systems at its shopping centres, positioning them to be sustainable and resilient over the long term.  

Principles that drive success  

The fund’s ability to consistently outperform year after year in a turbulent environment is rooted in the continuous deployment of capital-enhancing investments and active value-enhancing management of the existing properties assets.  

The fund management team’s guiding principles have been instrumental in shaping the fund’s success:  

1) Don’t chase deals just to deploy capital and earn fees. Bad deals could wipe out your entire track record. 

2) Treat client money as if it’s your own money.  

3) Don’t be complacent: you are only as good as your last set of performance numbers. 

4) Stick to your values and principles, regardless of external pressures. 

5) Place high emphasis on accountability and delivery on targets. 

6) Explore innovative ways to constantly improve returns. 

7) Prioritise property fundamentals to drive long-term sustainable growth. 

8) Focus on providing essential goods and services at affordable prices to underserviced communities.  

Looking ahead, the Comprop fund's unwavering commitment to innovation and sustainability positions it well for future success. By continuously adapting to evolving market conditions and maintaining a steadfast focus on its guiding principles, the fund is poised to navigate any challenges that may arise.   

The dedication to providing essential goods and services to underserved communities, coupled with a strategic approach to capital deployment and asset management, ensures that the fund will continue striving to attain its targeted returns and delivering value for investors.  

The Comprop Fund's unique blend of consistent performance, resilience, and forward-thinking strategy makes it a standout in the South African property sector.