Nominal Bond Funds

The Futuregrowth Passive All Bond Index Composite aims to match the returns of the benchmark through passive interest rate and yield curve management.

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

The benchmark is the All Bond Index.

Objective

The Composite seeks to track the performance of the ALBI.

Composition

The Composite invests in constituents of the All Bond Index. Off-benchmark bets are allowed to add additional return.

The Futuregrowth Core Bond 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 non-government fixed rate bonds.

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

The benchmark is the All Bond Index.

Objective

The Composite seeks to outperform the ALBI by 1% over a rolling 3-year period.

Composition

The Composite invests in a wide range of RSA government, state owned enterprise and corporate bonds (subject to credit committee approval). The Composite invests at least 50% in bonds with an effective government guarantee and can invest across the full spectrum of the yield curve. It is also mandated to invest in inflation-linked bonds up to a maximum limit of 7.5%.

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.

The Futuregrowth Yield Enhanced Bond Composite targets high returns through a combination of moderate credit concentration limits, active interest rate risk management and active off-benchmark bets.

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

The benchmark is the All Bond Index.

Objective

The Composite seeks to outperform the ALBI + 1% over a rolling 3-year period.

Composition

The Composite invests in a wide range of debt instruments including those issued by government, parastatals, corporates as well as securitised assets. The inclusion of such is subject to credit committee approval. The Composite has an allowance to invest up to 50% in unlisted credit and in addition, an allowance to invest in up to 5% equity assets (which is usually related to an underlying credit exposure) subject to investment committee approval. The resulting effect culminates in significant risk-adjusted alpha generation over time.

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.