Futuregrowth Asset Management (Pty) Ltd

Company details

FAIS FSP registration number: 520

Switchboard: +27 21 659 5300

Fax number: +27 21 659 5400

General email: info@futuregrowth.co.za

Address: 3rd Floor, Great Westerford, Main Road Rondebosch, 7700

Private Bag X6, Rondebosch, 7725

Compliance officer name: Ryan Kieser +27 21 659 5447

Investment philosophy

Futuregrowth’s fixed interest investment philosophy is to maximise long-term investment returns by identifying, measuring and managing all valueadding components of interest-bearing investments.

This can be broadly broken down into two core areas. Firstly, the interest rate process involves the determination of the most likely future direction of interest rates, followed by the most appropriate allocation to money market, nominal and inflationlinked bonds as well as yield curve positioning across all three of these broad interest rate asset classes.

The interest rate strategy is expressed mainly by utilising the most liquid RSA government bond market. The process endeavours to identify market anomalies by finding balance between economic fundamental analysis (top down) and market valuation (bottom up). They frequently find a mismatch which enables them to express their view, preferably against a well-priced market consensus.

Along with the intense scrutiny they pay to the interest rate process, they channel substantial efforts into asset selection. The core of the asset selection process is the creation of diversified portfolios with substantial yield enhancement through a robust credit/analysis process. As a result the portfolio’s running yield should produce long-term, stable outperformance.

In terms of market anomalies, Futuregrowth believe that they can add alpha through focused exploitation of market inefficiencies. They use well practised quantitative processes to select high credit quality and high yielding assets. They do realise that in the course of earning higher yields the portfolio is exposed to both default risk and widening credit spreads. These risks are minimised in a number of ways that include:

● Using a rigorous fundamental process that screens good assets for inclusion in the portfolio

● Ensuring diversity by credit exposure limits (issuer, credit class, sector)

● Negotiating strong lender covenants, security and protections which reduce the likelihood of default and also increase our estimated recovery rates in an event of default

● Actively monitoring and managing these assets

● Pricing appropriately for credit risk

FAIS requirements

Who is your FAIS complaints officer?

Ryan Kieser

Please provide the link to the complaints policy on your website: http://www.futuregrowth.co.za/legal-and-policies/ complaints-procedure/

What is the ownership structure of the company?

As at November 2022 the dispersion of Futuregrowth shares was as follows: Old Mutual Investment Holding Company 54.2%, Black Management Trust, 7.51%, Management Trust 11.8%, Imfundo Educational Trust 5.3%, AIH & AIH Capital 21.2%

Who are the directors of the company?

Henk Beets, Andrew Canter, Paul Rackstraw, Prabashini Moodley, Gcinikhaya Gobodo

Interest in ownership? Please provide the percentage held by staff and management: Yes, 19.3%

When was the company established?

2000

List of mergers and acquisitions that have taken place since being established:

2008 – OMIGSA became the majority shareholder

B-BBEE credentials

Are you B-BBEE accredited?

Yes

What is your B-BBEE status?

Level 1

By whom have you been accredited?

AQRate

Date of accreditation: 2022-06-08

GIPS

Are you GIPS compliant? Yes

Are you GIPS verified? Yes

By whom have you been verified?

E-Comply

Date of verification: 2019-12-31

Expiry date of verification: –