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Futuregrowth
Development Equity Fund
Bi-annual Report 31 March 2021
Image source: Divercity
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Chairman’s letter: A new era
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In South Africa, the picture is somewhat different. First, we see real innovation in the Fintech and disruptive
are behind the vaccination curve, and it seems likely we will technologies space, which quite plausibly will bring on the
see a third COVID-19 wave. Furthermore, long-term advent of a new growth sector (possibly at the
interest rates in South Africa are already very high, a result cannibalisation of the old sectors) which we have flagged to
of our slow growth and fiscal degradation over the past 12 monitor. We are seeing deals of world-class quality in our
years. Despite this, it is likely that the country will benefit pipeline.
from the global pick-up – particularly in commodity exports
– and a period of economic growth despite the apparent 3. Corporate activity
weaknesses in our economy and fiscus. This growth is likely
While the past year has thrown up plenty of challenges, it
to start strong and taper off in late 2022 and 2023.
has also presented a number of opportunities to our
investee companies, and we are seeing increased levels of
Against this backdrop, we are excited about the following
corporate activity. By identifying and backing the right
Image source: Thebe aspects:
jockeys, we believe we are going to see some significant
changes to the current landscape.
1. Infrastructure focus in South Africa
Looking forward from the debacle of 2020, it seems the
global force of COVID-19 will diminish as each country in After years of lagging, the need for infrastructure Thus, as the clouds of COVID-19 begin to part we look
succession rolls out (and through) its vaccination expenditure is all the more heightened: it is good for forward to renewed opportunities to make impactful,
programme. Following the short, sharp recession – and productive capacity, good for employment, spurs economic sustainable investments into South Africa.
prompted by pent-up demand, low cost of capital, and the growth, and is necessary. Given the state of the fiscus,
enormous stimulus in the developed world – global government needs the private sector to play a role in Regards
economic growth is looking increasingly healthy. The key funding (and managing) infrastructure projects. This is
risk lurking behind this is rising inflation which would drive where we and our investors come in, with our funds’ focus
interest rates upwards (and slow the growth trajectory). on infrastructure and developmental investing. Thus, we are
very attuned to the opportunities which should emerge
from the government’s nascent infrastructure drive.
2. Entrepreneurial ventures Andrew C Canter
Chief Investment Officer
In the past, South Africa has been known for its Chairman of the Futuregrowth Investment Committee
entrepreneurial spirit, and we are seeing this increasing in
our engagements with our prospective deal pipeline. We
Futuregrowth Development Equity Fund as at 31 March 2021 2
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Economic MasterThe
overview: titlebumpy
style
road toedit
Click to recovery continues
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Reflationary expectations unperturbed by slow unable to transfer these higher input costs onto also rendered a strong performance over the past six
vaccine roll-out consumers, given the weak consumer backdrop. months as a surge in commodity prices, on the back of
expectations of a strong recovery in China and the US,
The stuttered vaccine roll-out, triggered in many countries Figure 1: The US Treasury sell-off had been long in the
translated into strong mining sector earnings – rendering
by the emergence of new COVID-19 variants and by making (Market yield versus FG fair value estimate)
an impressive return of 22.5% over the period. Domestic
logistical complexities, has had a minimal impact on global
nominal bond returns, as measured by the FTSE JSE All
investor expectations of a strong recovery. A combination
Bond Index, were caught-up in the global bond sell-off and
of aggressive monetary stimulus and unprecedented fiscal
managed to eke out a decent, but unflattering 4.9% over
support has lent itself to creating concerns that the global
the period. Inflation-linked bonds however, generated a
rebound may become overheated. Expectations of higher
strong return with the FTSE JSE Inflation-Linked
growth and higher inflation, particularly in developed
Government Index rendering 10.4% over the period as the
economies, have resulted in the expectation of monetary
market began pricing-in higher inflation expectations. The
tightening, which in turn lead to strong increases in global
lowest performer over the period was cash. Returns as
developed market bond yields. Unsurprisingly, US Treasury
measured by the STeFI Call Deposit Index returned a lowly
bonds have climbed strongly over the past six months with
1.5% for the 6-month period ending 31 March 2021.
the 10-year benchmark rate increasing by 110 basis points
from 0.65% to pre-pandemic levels of 1.75%. The rapid Figure 2: Asset class returns as at 31/03/2021
rise in Treasury rates is reminiscent of the 2013 Taper
Tantrum, but this time around, rates have come off a much
Source: Futuregrowth, Bloomberg
lower base. All said, the current US 10-year yield of 1.75%
is still incredibly low from a historical perspective and
remains indicative of an exceptionally low cost of debt. It Equity markets remain unperturbed
could therefore be argued that the US Treasury market Despite the climb in rates, continued US fiscal stimulus
correction still has some legs, even in the absence of a provided enough ammunition to keep the reflationary trade
significant inflation shock or a dramatic rise in official alive. With stimulus cheques hitting investor bank accounts,
interest rates. US retail investors have become increasingly active in
Domestically, the inflation outlook remains benign with shaping market movement over the past few quarters. The
inflation expected to hover around the 4.5% targeted S&P500 index returned a strong double-digit 18.1% gain
midpoint of the inflation band over the coming year. This is over the past two quarters, with pro-cyclical sectors such
despite short-term pressures emanating from higher oil, as Energy and Financials driving the positive momentum.
electricity and food prices, and points to producers being Closer to home, the top-heavy FTSE JSE all Share Index
Source: Futuregrowth, Iress, Bloomberg
Futuregrowth Development Equity Fund as at 31 March 2021 3
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Economic overview continued
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The growth recovery remains a concern the fourth quarter of 2020, and with initial indicators for Figure 3: Planned fiscal improvement faces significant
the first quarter of 2021 pointing to a potential surplus as execution risk
Progress in terms of vaccine development has been
well. The strong showing in this regard will allow the South
positive, but it is far too early to start thinking of the virus
African Reserve Bank (SARB) some room to maintain
as a thing of the past. Although domestic infection rates
interest rates at current accommodative levels.
subsided in response to heightened restrictions, this may
be short lived, and efforts to vaccinate the country Fiscal risk remains precarious
continue to hobble along haphazardly. It follows that the
Revenue collection rebounded strongly as a result of
outlook for domestic growth, which is expected to rebound
higher-than-expected corporate profits, as well as a
from -7% in 2020 to 5% in 2021, could be jeopardised if a
stronger-than-expected recovery in third quarter GDP
third and potentially more aggressive wave were to
growth. As a result, revenue collection exceeded its target
emerge. The expected strong rebound is largely due to the
by R99.6 billion for the past fiscal year, when compared to
low base effects, and contrasts sharply with the bleaker
the revenue forecast tabled in October 2020’s mini-budget.
longer-term outlook.
The expected peak of the debt ratio also fell markedly,
The longer-term view is affirmed when considering given that it is now expected to peak in 2025/26 at 88.9%,
domestic economic indicators. Total private credit as opposed to the initial projection of 95.3%. Positively, Source: Futuregrowth, National Treasury
extension remained weak, with a 2.6% annual increase in real expenditure is only expected to grow by 0.4% over the Table 1: Key economic indicators and forecasts (annual
February, from 3.3% in January. This is the lowest level medium term. This is in a large part due to Government averages)
since July 2010. Further to this, and according to the holding the line on the recently implemented public sector
2016 2017 2018 2019 2020 2021 2022
quarterly labour force survey, South Africa’s unemployment wage bill freeze. Nevertheless, despite the strong showing,
rate reached a record high of 32.5% in the fourth quarter the fiscal outlook remains fraught with execution risk. Global GDP 2.5% 3.4% 3.3% 2.6% -3.6% 6.2% 4.5%
of 2020. Having said that, there are a few bright spots in Expected increases in revenue growth, particularly in the
SA GDP 0.4% 1.4% 0.8% 0.4% -7.00% 5.0% 2.0%
an otherwise gloomy outlook. The move to lockdown level outer years, could disappoint - and a sizeable chunk of the
one has seen the Absa manufacturing PMI rebound to its expected expenditure cuts hinge entirely on a continuation
SA Headline
highest level in nine months, with a score of 57.4 index of the wage freeze. What’s more, a debt ratio in excess of CPI
6.3% 5.3% 4.6% 4.1% 3.3% 4.0% 4.5%
points in March 2021. The external account also continued 80% of GDP is hardly sustainable when one factors in the
SA Current
to surprise positively, rendering a surplus of 3.7% of GDP current high cost of funding for an emerging market
Account -2.9% -2.5% -3.5% -3.2% 2.0% 0.5% -1.5%
economy such as South Africa. (% of GDP)
Source: Old Mutual Investment Group
Source: Futuregrowth
Futuregrowth Development Equity Fund as at 31 March 2021 4
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Our developmental investment philosophy
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Developmental product suite Futuregrowth is dedicated to the development and Global contribution
Futuregrowth has a 25-year-plus track record of investing in empowerment of South Africa and its people. We are We are also aligned with the UN’s Sustainable
developmental assets. Our funds provide finance to institutions constantly looking for opportunities that will yield Development Goals (SDGs), thus contributing to this
that may not typically receive support from the traditional optimal financial returns for investors while making a global "blueprint to achieve a better and more
banking or lending process. In addition to providing finance meaningful difference. As such, we have become a sustainable future for all". The SDGs are covered in
(credit), we also invest in equity and retail property with a reliable channel for investor savings and promoting detail later in this report, where we link the activities of
developmental nature. national development. each deal featured to these global targets.
We define developmental investing as financing that a) (See: www.un.org/sustainabledevelopment/sustainable-development-
Our developmental funds are part of our broader responsible goals/)
investment strategy and reflect the intention of our clients to provides investors with commercial returns and b)
do good by investing consciously to make a positive impact on produces a social and developmental impact. In South
society and the broader environment, and thereby to safeguard Africa the primary focus is on the provision of basic
our collective future. services and improvement of infrastructure
development.
Our suite of developmental funds consists of:
- Fixed Income (Infrastructure & Development Bond In order to achieve sustainable, long-term, benchmark-
Fund, Power Debt Fund, Inflation-Linked Debt Fund); beating performance, we apply a responsible investment
- Unlisted equity (Development Equity Fund, Agri Funds); filter when screening and analysing new deals for our
- Unlisted retail property (Community Property Fund); developmental funds. This is supported by a robust
and credit process that considers both financial risks and
- Fund of funds incorporating our suite of development environmental, social and governance (ESG) risks.
funds as building blocks (Developmental Balanced Fund).
Futuregrowth Development Equity Fund as at 31 March 2021 5
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Development Equity Fund (DEF) facts
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Fund facts
Portfolio manager Sarah de Villiers
The DEF is part of Futuregrowth's suite of development funds. It
has a broad risk mandate to participate in a range of suitable
Fund description projects, companies and instruments in socially responsible
projects and businesses or developmental assets in southern
Africa.
The DEF’s objective is to build a diverse portfolio of
developmental investments with a range of low/medium/high
Fund objective
impact characteristics while achieving good, stable, long-term
returns within a developmental framework.
Performance target Long term 18-22% nominal.
Fund life Open-ended with an unlimited life.
Current fund size R2.6 billion as at 31 March 2021.
The Fund’s investment style is active. We source high-impact
investments in a range of growth companies with aligned and
motivated management teams. We seek to align ourselves with
Investment style the strategic goals of investee companies and as long-term
partners, in order to earn appropriate risk-adjusted returns. That
said, our style is also to be opportunistic, so transactions can be
developed over weeks or years.
Investments are predominantly unlisted equity and equity-
related instruments but may include an exposure to debt
Composition
instruments up to a maximum of 20% of the Fund. Relevant
listed instruments are not precluded.
Benchmark CPI + 10%.
Structure Unitised, pooled and open-ended. Image source: Thebe
Futuregrowth Development Equity Fund as at 31 March 2021 6
Key features
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Development
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subtitle style
risk-
Targeting
R2.6bn 14+ years adjusted
Fund size
of socially responsible equity returns
investing by investing in equity
and related assets
Active in all
social and
Tangible Exposure to
9 provinces developmental over 62 issuers AND
impact 27 economic sectors
nine
Supports More than
Long-term Sustainable 80% of the Fund
stable returns Development in medium-to-high
developmental
Goals impact sectors
Futuregrowth Development Equity Fund as at 31 March 2021 7
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Measuring developmental impact
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Futuregrowth actively measures and manages for Beside the core metrics, we use key performance indicators
impact. Our impact measurement and management (KPIs) to standardise our impact measurement across the
approach draws on industry accepted standards and underlying investee companies to enable us to report on
aligns with the UN Sustainable Development Goals the impact achieved.
framework, Principles for Responsible Investment (PRI),
Global Impact Investing Network (GIIN)’s Impact Impact of investments Input Activities
Reporting, and Investment Standards (IRIS+). Our We believe it is important to have an explicit objective that
approach continues to evolve and draw on industry best is defined and agreed with the investee company upfront –
practice. and expressed as a set of deal-specific impact metrics.
These KPIs measure the “success” of each investment, and
Impact Output
these are collated and reported to our clients as evidence of
Social impact metrics the impact of their investment.
We have a set of core metrics across all deals in our
portfolios. Key Performance Indicators (KPIs) Outcome
1. Input: amount invested to finance activities.
2. Output: The immediate results of activities.
3. Outcome: The short- to mid-term social impact as
Jobs created a result of activities.
BBBEE
level
4. Impact: The long-term changes in the lives of the See page 17 for the impact indicators applied to our
beneficiaries as a result of the outcomes above. investment in Divercity Urban Property Fund.
Core
metrics
SMMEs
supported Transformation
Gender equality
Futuregrowth Development Equity Fund as at 31 March 2021 8
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Social impact & developmental sectors
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45.20% 24.77% 9.67% 3.98% 2.52% 1.47%
Exposure across
and 2.79%
Infrastructure & social in Tourism and
Education.
services sectors
Energy including Communications Health Development
Transport finance
renewable energy
36.13% 6.71% 18.28% 1.12% 4.84% 4.97%
Exposure across and 0.21%
in Environment
other developmental Preservation
and Other
sectors infrastructure.
Low income & SMME finance BEE finance Agricultural development Consumer & business
affordable housing & land ownership access to finance
Invested in all 9 Delivering social impact
provinces that changes lives
Futuregrowth Development Equity Fund as at 31 March 2021 9
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Geographic Master title style
exposure
&Click
rural development
to edit Master subtitle style Limpopo
0.18%
National The Fund has geographical
65.18% Mozambique diversity across South Africa,
Mpumalanga 1.19% with investments held in 9 provinces.
North West Gauteng 4.66% The Fund has more than 65%
1.06% 8.07% exposure to assets with a national
footprint.
Namibia
0.14%
Free State
33% of the Fund investments impact
KwaZulu-Natal on rural and outlying peri-urban
2.20%
Northern Cape 2.21% areas.
9.30%
22%
urban
Eastern Cape rural
11%
0.60% peri-urban
Western Cape
67%
6.27%
Source: Futuregrowth
Futuregrowth Development Equity Fund as at 31 March 2021 10Click to edit
Alignment with Master title style
the Sustainable
Development Goalsstyle
Click to edit Master subtitle (SDGs)
The Sustainable Development Goals Several countries are already taking steps
17 1
(SDGs), or Global Goals, came into to translate these ambitions into tangible NO
effect in January 2016. They are a outcomes for their people. In South Africa, PARTNERSHIPS
POVERTY
2
universal call to action to end poverty, a mechanism has been established for 16 FOR THE GOALS ZERO
protect the planet and ensure that all reporting on the 2030 Agenda, together PEACE, JUSTICE HUNGER
people enjoy peace and prosperity. with the African Union’s Agenda 2063, in AND STRONG 3
alignment with the National Development INSTITUTIONS GOOD
Futuregrowth supports the SDGs, as Plan (NDP). HEALTH
evidenced through our impact 15
investments, thereby contributing Going towards 2030, critical interventions LIFE ON LAND
towards a sustainable economy. include: improved employment 4
opportunities for the most vulnerable, QUALITY
The 17 SDGs build on the success of the discriminated sectors in society; EDUCATION
Millennium Development Goals, with strengthening multi-stakeholder
14
partnerships; eliminating gender LIFE BELOW
new areas - such as climate change,
economic inequality, innovation, inequalities and gender-based violence; WATER 5
sustainable consumption, peace and and responding to the impact of the 4th GENDER
justice - included in the priorities. The Industrial Revolution. 13 EQUALITY
participating countries commit to working CLIMATE
towards implementing this Agenda by “The SDGs are as much about ACTION 6
2030.
development and transformation CLEAN WATER
The SDGs work in the spirit of partnership AND
as they are about the restoration 12 SANITATION
and pragmatism to make the right choices
now, to improve life in a sustainable way of the dignity of people around RESPONSIBLE
7
for future generations. They provide clear the world, more so in South CONSUMPTION
AFFORDABLE
guidelines and targets for all countries to Africa with its history of 11 8 AND CLEAN
adopt in line with their own priorities and
deprivation and exclusion of the SUSTAINABLE
9 DECENT ENERGY
the environmental challenges of the world CITIES AND
at large. The goals are interconnected: majority of its people.” COMMUNITIES
10 INDUSTRY, WORK AND
ECONOMIC
often the key to success in one will involve Jackson Mthembu, the late Minister in the REDUCED INNOVATION
Presidency AND GROWTH
tackling issues more commonly associated INEQUALITIES
INFRASTRUCTURE
with another.
Futuregrowth Development Equity Fund as at 31 March 2021 11The Fund’s IMPACT across SDGs
Ensure inclusive and equitable quality education and
promote lifelong learning opportunities for all by
investing in schools and education programmes to
increase skills and knowledge to attain employment and
create more inclusive and sustainable communities.
Ensure healthy lives and promote well-
being for all at all ages by investing in
businesses that improve the availability of
healthcare and medical services as well
as special medical units. Our clients’ investments contribute directly
to nine SDGs across all sectors.
Ensure access to affordable, reliable, sustainable and Promote sustained, inclusive and sustainable economic growth,
modern energy for all by investing in new, expanding or full and productive employment and decent work for all by
existing renewable energy projects resulting in the investing in underserved markets that unlock and support job
Futuregrowth Development Equity Fund reduction of greenhouse gas emissions and the creation, growth and improved labour standards and practices
as at 31 March 2021 promotion of technology and efficient business models. for improved livelihoods. 12 12The Fund’s IMPACT across SDGs continued
Build resilient infrastructure, promote inclusive and sustainable Make cities and human settlements
industrialisation and foster innovation by partnering and inclusive, safe, resilient and
supporting government in financing infrastructure projects and sustainable by investing in businesses
providing access to finance for businesses that create more that increase the availability of
inclusive and sustainable communities. affordable housing stock near
transport options and provide access
to home ownership for low- and
moderate-income populations.
Our clients’ investments contribute directly
to nine SDGs across all sectors. Take urgent
action to
combat
climate change
and its impacts
by investing in
businesses
that reduce
greenhouse
gas emissions,
increase
resource
efficiency,
Reduce inequality within preserve and
Ensure sustainable consumption and and among countries by grow natural
production patterns by investing in projects investing in businesses that capital and
that promote climate adaptation in promote financial, social support
agriculture, water management, recycling, and economic inclusion for climate
land use, and construction to build all in order to promote mitigation.
sustainable, efficient and resilient inclusive growth and reduce
inequalities. 13
economies.Clickimpact
Social to editacross
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developmental
funds:
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29 430 Percentage of
jobs by sector:
55 990 Permanent
jobs sustained SMME 56%
Total job Housing 24%
numbers 26 560 Communication 10%
Tourism 7%
Temporary jobs Energy 1%
Other 2%
created
In December 2020, a review of a sample of 22
investee companies in our developmental funds
revealed these job creation numbers. The
67
SMME sector was the strongest job creation
sector (despite only forming 9% of the assets 79% 34%
collated). held by people
Positively, 79% of these jobs are held by PDIs
held by PDIs held by youth living with
and 34% by youth - indicating the strong
developmental impact of our fund’s
disability
investments.
Image source: Red Rocket
Futuregrowth Development Equity Fund as at 31 March 2021 14IMPACT thesis
Affordable housing
DEF exposure Our goal The challenge Futuregrowth’s approach
of 6.71% to Provide Statistics for the South African To invest in solutions that increase the
funding to residential sector suggest that the total availability of affordable and safe housing
low income & facilitate safe, housing backlog could be in the region units near transit hubs – so as to support a
affordable affordable and of two million units, with the shortage vibrant and growing mixed income
sustainable in the “gap” market well in excess of community.
housing housing in the 700 000 units. This bracket includes
low-income people who earn between R3 500 and The DEF has participated in the
and affordable R15 000 per month, which is too little development of 2 829 housing projects
market for to enable them to qualify for a that have facilitated access to 48 731
individuals mortgage finance, yet too much to housing units, which are located mainly in
and families in qualify for a full government subsidy Gauteng. The units are available either for
South Africa. (Africacheck.org). rental or purchase.
Investment outcome metrics DEF impact themes DEF investment
in the low
Investment outcomes include reducing the housing backlog, increasing available & SDG alignment
affordable housing units, and job creation, as follows: income &
As illustrated on previous pages, the DEF
1. Number of housing projects/buildings financed 2 829 affordable
currently supports 9 SDGs.
2. Total number of rental units created or preserved 48 731 housing sector
3. Average monthly rental range R3 425 contribution to
The Fund’s investment into the low income
4. Total number of direct employment opportunities created and sustained as a result SDGs.
& affordable housing sector facilitates:
of investment 862 1. Access to affordable housing
- 9 237 indirect permanent and temporary jobs created 2. Access to basic services
during construction and property management 3. Community development
- 91% of the total job numbers are to previously
disadvantaged individuals (PDI - black, coloured, Indian)
- 41% of the employment opportunities created are
held by youth (15 to 35 years of age).
Disclaimer: Impact indicators and SDG contribution as a result of business activities at the time of reporting.
Futuregrowth Development Equity Fund as at 31 March 2021 15By being able to access affordable housing in the inner cities,
Inner Click
city regeneration
to edit Master title style individuals and families who could not afford alternative
housing will likely see improvements in their living conditions.
one precinct atMaster
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Furthermore, being closer to transport hubs will lead to a
decrease in travel costs – typically a large part of lower-
With over 95% of current affordable housing at the urban
income budgets.
periphery, poor (and typically black) households remain
marginalised and far from economic opportunity, essential
Sector impact of COVID-19
services and amenities. With this in mind, Futuregrowth has
The impact of COVID was tough on the economy, businesses
partnered with Divercity to develop integrated
of all sizes and in almost all sectors of the economy and
neighbourhoods in centrally located areas.
Divercity and its tenants were not immune to this. There was
Images:
a spike in vacancies as people lost their jobs or earned much
Divercity Urban Property Fund is a for-profit property fund, Retail Capital
less than expected, which affected roughly 20 to 30% of the
setting a new standard for socially responsible,
tenant base.
environmentally sustainable and economically productive
urban development. Divercity invests in high density urban
During this period, Divercity continuously looked for ways to
precincts. These precincts are well located, rich in amenities,
mitigate the inevitable impact and took measures to help
and weighted towards affordable rental housing. They offer
Jewel City: Improving livelihoods their tenants through the most difficult times, by arranging
low- and middle-income households the opportunity to live in
An area that was closed off and abandoned for over 20 years payment plans and payment holidays to alleviate the rental
sustainable urban environments, close to where they work
is now transforming to a rejuvenated mixed-use housing, burden. This resulted in an influx of payment arrangement
and with access to the essential amenities required to get
education and retail precinct, in one of the few pedestrianised requests with over 1 000 tenants assisted with deferred
ahead in life.
nodes of the Johannesburg CBD. The R1.8-billion payment schedules. Residential tenants were also given rent
redevelopment is set to be a place where people can ‘live, relief in a region of half a million rand. On the commercial
work, play’. It comprises 2 700 apartments and 20 000m2 of side, significant rent relief was also given to retailers both big
commercial space. Its retail space has attracted major brands and small. The South African Property Owners Association
including Shoprite, Clicks, Pep, McDonalds, and Chicken prescribed guidelines were applied and, in some instances,
Licken as well as a Capitec Bank branch. The precinct also additional relief was provided.
includes the Jewel City Medical Centre and Five’s Futbol five-
a-side soccer fields.
Jewel City aims to improve the quality of life for individuals
seeking to move closer to the hustle and bustle of the ‘city of
gold’. Divercity firmly believes in the importance of undoing
apartheid-era spatial divides that, to this day, segregate our
cities by race and class. By developing integrated
neighbourhoods in centrally located areas, Divercity is
bringing historically marginalised households into the urban
Source of images: Divercity core.
Futuregrowth Development Equity Fund as at 31 March 2021 16IMPACT indicators
Divercity Urban Property Fund
Inputs Outputs ✓ 57 buildings
✓9% Well located,
Invest in and grow Regeneration & densification of
Equity stake taken by the dilapidated buildings
profitable and DEF (Ithemba Group amenity rich
scalable affordable housing ✓ 6 479 apartments
Investments)
businesses Community-oriented precincts
✓ 460 permanent with improved access to social
employees services
95% previously 2
✓ 90 000m commercial
disadvantaged
36% held by youth (15 to 35
and retail GLA
Increased market activity and
years of age)
job creation
Outcomes ✓ Provision of affordable Impact
Improved access housing Spatial
to economic 3 849 average monthly rental transformation
opportunities ✓ Low-cost commuting ✓ R3bn
Less time spent commuting Existing portfolio invested in
✓ Greater economic high quality, well managed
inclusion urban environment
R800m in non-finance
procurement spend; over 55%
preferential procurement from SDG
Contribution
BEE Level 1 and 2 suppliers
by Divercity
Disclaimer: Impact indicators and SDG contribution as a result of business activities at the time of reporting.
Futuregrowth Development Equity Fund as at 31 March 2021 17The Development Equity Fund team
The members of the Development Equity team at Futuregrowth
share a passion for sustainable investing, and a drive to achieve a
win-win relationship between investor and society.
Amrish Narrandes Chantal Wood
Sarah de Villiers Head: Unlisted Equity Kearon Gordon Ayanda Bolani Khumo Keebine Specialist Fund
Portfolio Manager Transactions Investment Analyst Investment Analyst Investment Analyst Administrator
Andrew Canter Rirhandzu Sithole Olga Constantatos Paul Semple Angelique Kalam Marcelle
CIO Impact Investment Head: Credit Joint Head: Manager: van Schalkwyk
Analyst Unlisted Credit Sustainable Deal Support
Investment Practices Specialist
Futuregrowth Development Equity Fund as at 31 March 2021 18Click to edit Master title style
Contact our Client Relationship team
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CLIENT RELATIONSHIP TEAM Disclaimer
Maseabi Marageni Futuregrowth Asset Management (Pty) Ltd (“Futuregrowth”) is a licensed discretionary financial services provider, FSP 520, approved by
mmarageni@futuregrowth.co.za the Registrar of the Financial Sector Conduct Authority to provide intermediary services and advice in terms of the Financial Advisory and
C +27 84 837 7295 Intermediary Services Act 37 of 2002. The fund values may be market linked or policy based. Market fluctuations and changes in
exchange rates may have an impact on fund values, prices and income and these are therefore not guaranteed. Past performance is not
necessarily a guide to future performance. Futuregrowth has comprehensive crime and professional indemnity in place. Performance
Steffen Josephs figures are sourced from Futuregrowth and IRESS.
sjosephs@futuregrowth.co.za
C +27 83 327 3543 This document is for information purposes only and is not intended as an offer or recommendation to buy or sell or a solicitation of an
offer to buy or sell a financial product or security. The recipient is advised to assess the information with the assistance of an advisor if
necessary, with regard to its compatibility with his/her own circumstances in view of any legal, regulatory, tax and other implications.
Ziyanda Tshaka
ziyandat@futuregrowth.co.za Personal trading by staff is restricted to ensure that there is no conflict of interest. All employees of Futuregrowth are remunerated with
C +27 83 666 0392 salaries and standard short and long-term incentives. No commission or incentives are paid by Futuregrowth to any persons. All inter-
group transactions are done on an arm’s length basis. Futuregrowth has comprehensive crime and professional indemnity insurance.
Marilyn Gates Garner
Futuregrowth prepared this document in good faith. Although the information in this document is based on sources considered to be
marilyng@futuregrowth.co.za reliable, Futuregrowth makes no representation or warranty, express or implied, as to the accuracy or completeness of this document, nor
C +27 82 466 0868 does it accept any liability which might arise from making use of this information.
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