Institutional Funds

Income Funds

Our Income Funds Composite consists of portfolios invested in asset allocation funds that emphasise current income.

Core Income

The Futuregrowth Core Income Composite aims to deliver excess return through a combination of interest bearing asset allocation, active interest rate risk management, appropriate yield curve positioning and moderate exposure to higher yielding fixed and variable rate non-government bonds.

For more information on this fund, please email fundinfo@futuregrowth.co.za.

The Composite is also mandated to invest in inflation-linked bonds. It offers a high level of income together with a commitment to higher capital stability. The benchmark is 50% South African STeFI Call Index and 50% 3-7 Years All Bond Index.

Objective

The Composite seeks to outperform the combined benchmark over a rolling 3-year period.

Composition

The Composite invests in a wide range of fixed rate, variable rate and inflation-linked bonds issued by the RSA government, state owned enterprises and the corporate sector, subject to credit committee approval.

Yield Enhanced Strategy

Our yield enhanced strategy relies on maintaining strong relationships with market players. This allows us to see a large degree of dealflow 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.

Flexible Income

The Futuregrowth Flexible Income Composite aims to deliver excess return through a combination of interest bearing asset allocation, active interest rate risk management, appropriate yield curve positioning and exposure to higher yielding fixed and variable rate non-government bonds.

For more information on this fund, please email fundinfo@futuregrowth.co.za.

The Composite is also mandated to invest in inflation-linked bonds, listed property and preference shares. Delivering a stable income is balanced with a commitment to utilise market opportunities to seek maximum capital gain, but also to revert to strategies to protect capital when market conditions turn negative. The composite is not limited by duration constraints. The benchmark is 110% of the South African STeFI Call Index.

Objective

The Composite aims to outperform 110% of the STeFI Call Index. It aims to offer a high level of income while capital loss may not exceed a rolling 12-month period.

Composition

The Composite invests in a wide range of fixed rate, variable rate and inflation-linked bonds issued by the RSA government, state owned enterprises and the corporate sector subject to credit committee approval. The composite is also mandated to invest in listed property, to a maximum of 25%, and preference shares.

Yield Enhanced Strategy

Yield Enhanced Income

The Futuregrowth Yield Enhanced Income Composite aims to deliver excess return through a combination of interest bearing asset allocation, active interest rate risk management, appropriate yield curve positioning and exposure to higher yielding fixed and variable rate non-government bonds.

For more information on this fund, please email fundinfo@futuregrowth.co.za.

The Composite is also mandated to invest in inflation-linked bonds, unlisted bonds and equities (no more than 3% of the portfolio). Delivering a stable income is balanced with a commitment to utilise market opportunities to seek maximum capital gain, but also to revert to strategies to protect capital when market conditions turn negative. The Composite is not allowed a modified duration great than 2.00. Wider derivative limits allows the manager more leverage in protecting the Composite against potential capital loss. The benchmark is 20% ALBI and 80% STeFI.

Objective

The Composite aims to outperform the benchmark by 1% over any rolling 3-year period. It aims to offer a high level of income while capital loss may not exceed a rolling 3-month period.