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.
A brief description of some of the underlying funds:
The Old Mutual Responsible Investment Equity Fund is a domestic equity portfolio of listed SRI equity investments whose benchmark is an appropriate responsible equity investments index.
From time to time the manager identifies specific shares that can be held directly. These opportunities will normally not exceed a total of 5% of the portfolio value.
The Futuregrowth Development Equity Composite specialises in equity and related investments in socially responsible projects and businesses or developmental assets. The benchmark is CPI + 10%.
The Futuregrowth Infrastructure & Development Bond Composite is a specialist yield enhanced bond portfolio. 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 Futuregrowth Community Property Composite specialises in the financing and development of retail shopping centres catering to the needs of under-serviced communities throughout South Africa. The benchmark is CPI + 4%.
The Futuregrowth Power Inflation-linked Bond Composite is an investment portfolio that specialises in energy-related industries and sectors. The benchmark is the RSA Inflation Linked Government Bond I2038.