Developmental Funds

The Futuregrowth Infrastructure & Development Bond Composite, a specialist yield enhanced bond portfolio, forms part of Futuregrowth’s suite of developmental investments.

The Composite targets high returns through a combination of moderate credit concentration limits, active interest rate risk management and active off-benchmark bets. The benchmark is the All Bond Index.

The Composite aims to provide investors with a vehicle that facilitates infrastructural, social, environmental and economic development in southern Africa and delivers on a variety of social impact requirements such as job creation, affordable housing, access to services and healthcare.

The Futuregrowth Community Property Composite is a portfolio specialising in the acquisition of new and existing shopping centres which cater to the needs of underserviced communities throughout South Africa and forms part of Futuregrowth’s suite of developmental investments.

The Composite aims to provide investors with a vehicle that offers service and consumer facilities to local communities, facilitates infrastructure and delivers on a variety of social impact requirements.

Each centre is a catalyst for the development of:

• Transport infrastructure (taxi ranks and bus terminals) and infrastructure such as electricity, water and sewerage services which benefit the community;

• Vehicular service stations, additional shopping centres and municipal services; and

• Municipal infrastructure through increased rate payments by the new shopping centre.

The Futuregrowth Development Equity Composite, a portfolio specialising in equity and related investments in socially responsible projects and businesses or developmental assets, forms part of Futuregrowth’s suite of developmental investments.

The Composite aims to provide investors with a vehicle that facilitates infrastructural, social, environmental and economic development in southern Africa, while maintaining a high degree of exposure to developmental assets, and delivers on a variety of social impact requirements such as job creation, affordable housing, access to services and healthcare.

The Futuregrowth Power Debt Composite, an investment portfolio specialising in energy-related industries and sectors, forms part of Futuregrowth’s suite of developmental investments.

The Composite aims to provide investors with a vehicle that facilitates infrastructural, social, environmental and economic development in southern Africa through investments in energy related businesses and sectors. These include electricity generation from renewable, alternative and traditional sources, power distribution and reticulation, and supporting industries and sectors).

The Composite delivers on a variety of social impact requirements such as:

• Job creation

  - Employing local labour to build and maintain the plants.

  - Short- and long-term job creation.

  - SMME development through employing contractors.

• High level of mentorship and skills transfer from international developers.

• Local technology and subcontractors which will be used in all projects according to

  Government’s minimum requirements.

• International developers partnering with local firms that have a strong knowledge of the South African market.

• BEE equity requirements - including participation by a trust representing the local community which will be implemented according to minimums set by Government.

• Investment by the projects into local socio-economic infrastructure and services.

• Compliance with the Equator Principles.

The Futuregrowth Development Balanced Composite, a balanced portfolio providing investors with social impact by investing in a range of developmental investments, forms part of Futuregrowth’s suite of developmental investments.

The Composite has exposure to a range of asset classes from listed equity (Old Mutual Responsible Investment Equity); bonds (Futuregrowth Infrastructure & Development Bond); unlisted property (Futuregrowth Community Property); unlisted equity (Futuregrowth Development Equity); inflation-linked bonds (Futuregrowth Power ILB) and cash. The benchmark is a composite weighting of the underlying funds’ benchmarks.

Futuregrowth Agri-Funds, portfolios specialising in the investment of agricultural land, biological assets, agricultural infrastructure and other related farming implements, form part of Futuregrowth’s suite of developmental investments. There are currently three funds in our suite of agricultural funds. Fund 1 is closed, Fund 2 is in drawdown phase and Fund 3 is open for investment.

The funds aim to provide investors with a developmental vehicle that facilitates agricultural development, farming infrastructure, social, environmental and economic development in Southern Africa, and incorporates a proven investment model to address sustainable rural development and agricultural initiatives that lead to:

• Land development and conservation

• Environmental reform

• Employment

• Health care

• Housing

• Education

• Food security

• Skills transfer

The Futuregrowth Infrastructure and Development STeFI+ Composite, a specialist yield enhanced portfolio, forms part of Futuregrowth’s suite of developmental investments. The Composite targets high returns through a combination of moderate credit concentration limits, active interest rate risk management and active off-benchmark bets.

Yield enhanced strategy

Our yield enhanced strategy relies on maintaining strong relationships with market players. This allows us to see a large degree of deal-flow on a continuous basis and keep an eye on ever-evolving credit events in the market. In the unlisted space, our specialist structuring skills allow us to make loans that ensure lenders achieve the greatest degree of investor protection through loan terms, covenants and security while ensuring risk-adjusted returns with good diversification.