TRANSFORMATION MATTERS
INVESTMENT GROUP
1 2 3
CONTENTS
ABOUT US 4
OUR FOCAL POINT 5
A MESSAGE FROM OUR MD 6
THE NEED FOR SA’S ASSET MANAGERS TO TRANSFORM 10
DEVELOPING BLACK STOCKBROKERS AND SUPPLIERS 12
OUR B-BBEE CERTIFICATE 15
TRANSFORMATION JOURNEY 16
HUMAN CAPITAL UNDERGOING TRANSFORMATION 18
IMFUNDO TRUST: LAYING THE FOUNDATION FOR TRANSFORMATION 21
SHOWCASING BLACK FEMALE EXCELLENCE IN 25 ASSET MANAGEMENT: MEET NELISIWE NZAMA
SHAPING A FUTURE THAT MATTERS: MEET SINENHLANHLA DLAMINI, CHAIRWOMAN OF THE 29 EMPLOYMENT EQUITY AND DIVERSITY FORUM
OMIG TACKLES TRANSFORMATION HEAD ON 32
TAKING TRANSFORMATION TO 34 ALTERNATIVE INVESTMENTS
IMPACT INVESTING THROUGH HOUSING 37 FOR SUSTAINABLE CHANGE IN SOUTH AFRICA
GREEN HANDS – THE HEART OF CORPORATE SOCIAL INVESTMENT 40
3 4 ABOUT US 5
OUR FOCAL POINT
WE ARE OLD MUTUAL ABOUT US INVESTMENT GROUP
OUR VISION OUR MISSION TO GENERATE SUSTAINABLE To relentlessly pursue investment INVESTING FOR LONG-TERM RETURNS THAT excellence, within and across our WE RELENTLESSLY WE OPERATE AS boutiques, to help our clients achieve PURSUE INVESTMENT A FUTURE THAT INDEPENDENT MAKE A DIFFERENCE IN EXCELLENCE BOUTIQUES OUR CLIENTS’ LIVES. their investment goals. MATTERS
WE INVEST ALONGSIDE OUR CLIENTS 6 FOREWORD FOREWORD 7
Old Mutual Investment A MESSAGE Group is part of Old Mutual Limited, which FROM OUR MD is proudly listed on the Johannesburg Stock WE ARE REVIEWING - Khaya Gobodo Exchange (JSE) with a standard listing on PLANS TO the London Stock FUNDAMENTALLY ALTER Exchange (LSE), and THE QUALITY AND secondary listings on QUANTUM OF BLACK the Malawi (MSE) and OWNERSHIP WITHIN THE Namibia (NSX) Stock OLD MUTUAL INVESTMENT Exchanges. Being a public listed company, GROUP our shareholders are broad and vary from 2020 has been a year in individuals to institutions, domestic covered so far, and to re-energise support we give to black- and which the challenges of TRANSFORMATION – to foreign, short term to long term. ourselves for the road ahead in this women-owned suppliers, especially inclusion in our global Our black ownership at Old Mutual journey. in the stockbroking space and Limited currently stands at 25.2% and economic order, and MULTI-DIMENSIONAL in our enterprise development it is public record that we intend to This publication, Transformation of unconscious bias in commitments. Over and above these, improve this level of black ownership Matters, provides us with an our relationships with IN OUR APPROACH the amazing work being done by the in the next two years or so. opportunity to do exactly that. It is each other as citizens Imfundo Trust and the Green Hands an opportunity for us to take stock of of this planet, came to Trust should not go unnoticed. Whilst black ownership is an the last two years, and to re-energise the fore. Globally, we have seen societies and important element of our strategic for the future. As staff of Old Mutual All of these initiatives contribute nations respond in different ways to these long-term plans, our thinking on Investment Group and the broader immensely to the meaningful challenges. We have also seen companies transformation is much broader than Old Mutual Investments cluster, we contribution being made by the and businesses all over the world starting purely looking at black shareholding. can be proud of the work that is Old Mutual Investments cluster to to place greater urgency and focus on We take a holistic and multi-faceted being done by different parts of our transforming our society and creating diversity and inclusion policies and view of transformation and our role organisation that impacts our society a more inclusive and diverse future practices in their respective spaces. in it. We are proud of the immense in a positive way, in creating greater that matters. We trust our clients will progress that we have made over inclusion and greater diversity. also feel the same sense of pride as The topic of meaningful transformation is the past two years in improving the we do, with respect to the passion the responsibility of every South African, diversity of our leadership and of Every staff member in our organisation to spend time thinking deeply about. It our investment teams, as well as in should feel proud of the work being and commitment to broad-based has many facets and many descriptions, but other business areas, as we strive undertaken by the Transformation transformation, visible across our there is generally a consensus that transformation to become a truly demographically Committee, the Employment Equity business. is an essential driver for social good and economic representative organisation. and Diversity Forum, transformation justice, given our country’s political and economic related engagements within our I urge you to immerse yourself in this history. Whilst we recognise that we still have listed stewardship activities and publication and the transformation some way to go on our transformation the meaningful social impact in journey that we as an investment journey, it is worth pausing from time our Impact Investing portfolios. We business have committed to over to time to take stock of the ground should feel proud of the significant the years to come. Enjoy the read. OUR ROLE IN ASSET MANAGEMENT 9
THE MORE DIVERSITY WE HAVE AMONG OUR INVESTMENT PROFESSIONALS, THE GREATER INCLUSIVITY AND DIVERSITY THERE WILL BE WITH REGARD TO HOW THE INVESTMENT POOL IS MANAGED. 10 OUR ROLE IN ASSET MANAGEMENT OUR ROLE IN ASSET MANAGEMENT 11
THE NEED FOR SA’S NATIONAL ECONOMICALLY ACTIVE POPULATION BY POPULATION AND GENDER GROUP MALE FEMALE TOTAL ASSET MANAGERS AM African Male 42.8% AF African Female 36.0% 78.8% CM Coloured Male 5.2% CF Coloured Female 4.4% 9.6% TO TRANSFORM IM Indian Male 1.7% IF Indian Female 1.0% 2.6% WM White Male 5.1% WF White Female 3.9% 9.0% - Tebogo Naledi, 54.7% 45.3% 100.0%
Director of Institutional Business *Source: Statistics South Africa, (QLFS, Quarter 3 2018)
us, without doubt, that our industry What this practically involves is the 5. Giving back to our community needs to adapt and evolve. following: through the Green Hands Trust, 1. Proactively ensuring that the which is a staff driven initiative As OMIG, we are not labelled a black- OMIG hiring and promotion owned investment house. However, funded by the financial and practices place transformation As a responsible, long-term investment manager in South Africa, Old as one of the largest and oldest asset passion driven contributions of as a priority for improved Mutual Investment Group (OMIG) has an important role to play in the managers in the country, we know OMIG staff. demographic representation in transformation of the SA economy, the financial services industry and that our actions are impactful. our firm that is reflective of the “The financial services the asset management sector. To enable economic growth, societal Transformation is strategically country we live in, especially in the transformation and a sustainable future for the world in which our clients We also understand that over and prioritised in the listed stewardship sector plays a pivotal senior levels of the organisation. and communities live and operate, our business must be responsive above championing black ownership, and engagement activities undertaken role in the ongoing transformation in asset management 2. Promoting diversity (demographic, to the socioeconomic issues that we face as a society. in OMIG’s Responsible Investing team. transformation of the is a broad-based initiative that also cognitive ability and skills sets) Our philosophy is that in a South South African economy Bringing it closer to home, we at Old Mutual Investment Group places importance on diversity of in the investment teams that African context, the "S" in ESG overlaps and in ensuring that the recognise that we have an important role to play in transformation as leadership and diversity of investment manage our clients’ capital, significantly with transformation economy is inclusive. a corporate citizen of South Africa, as an employer and as a custodian managers. It is also about the support especially among senior objectives. The sector is central of the nation’s savings. and development of black- and investment decision-makers. women-owned businesses, the to the realisation of a 3. Directing meaningful business Put frankly, the asset management industry is not a sector that can development of black and female Many of our clients prioritise procurement towards black- and society in which all South proudly proclaim significant progress when it comes to transformation. investment talent, especially among transformation and we completely women-owned businesses as Africans have an equal The numbers tell a challenging story. An often-quoted statistic illustrating the youth, and giving back to our demonstrated by our industry- share their view of this not only being opportunity to participate the lack of transformation in the industry is from the annual 27Four communities. Lastly, transformation leading support for black a commercial necessity, but a critical Transformation in the Asset Management Industry Report, which in asset management is also about in mainstream economic stockbrokers. endeavour in shaping South Africa to measured that, as of 30 June 2020, there were 51 black-owned asset impacting the transformation activities as envisaged 4. Education and skills development truly be an inclusive and a growing managers operating in South Africa with an estimated market share outcomes of investments we steward in the National initiatives targeting the youth, and prosperous nation. of just under 9%. on behalf of clients. Development Plan.” such as OMIG’s Imfundo Trust, At OMIG we embrace a broad-based which has a track record in We urge all investors to thoroughly Regulatory Strategy of the A less-quoted statistic, but one that is also very important in demonstrating approach to transformation and we providing needed financial interrogate how their asset managers Financial Sector Conduct progress in transformation, relates to the demographics of investment lay great importance on ensuring assistance for talented students support the creation of an inclusive Authority 2018-2021 managers in the industry. According to the Association for Savings and Investment South Africa (ASISA) Investment Management Employment that our actions are impactful and who have attended, or are society in a broad-based manner, Equity Survey 2019, 29% of investment managers in the industry are black, truly shift the dial in creating a more attending, some of South Africa’s while managing their investments. of which only 11% are black African. Compared to the demographics inclusive and diverse company, best tertiary institutions. of all economically active people in South Africa, these statistics say to industry and society. 12 STOCKBROKERS AND SUPPLIERS STOCKBROKERS AND SUPPLIERS 13
In addition, for the past five years, OMIG has joined Through equity, debt or combined other industry players in an initiative that focuses structured deals, the ESD Fund supports on developing selected black stockbrokers. This initiative is spearheaded by the Association for businesses requiring expansion capital Savings and Investment South Africa (ASISA). It aims to grow and create jobs and make a to invest in the strategic growth and development social impact. of black stockbrokers in order to enhance industry DEVELOPING BLACK competitiveness and create sustainable value for stockbrokers, the industry and South Africa through In 2016, OMIG invested R30m into the ASISA Enterprise and STOCKBROKERS best practice enterprise and supplier development. Supplier Development (ESD) Fund. This fund accelerates the development of the operational and financial capacity OTHER ENTERPRISE AND SUPPLIER AND SUPPLIERS of enterprises with high growth potential, industry supply DEVELOPMENT INITIATIVES chain alignment, differentiated competitive advantage and OMIG’s support of small and medium enterprises extends the strategic business fundamentals required to succeed. beyond the stockbroking industry. Our overall procurement Through equity, debt or combined structured deals, the practices are directed towards black-owned, black female- ESD Fund supports businesses requiring expansion capital owned and QSE suppliers. At an industry supply level, our to grow and create jobs and make a social impact. most significant investment into developing small and As one of the largest asset managers Four years ago, we took a decision to play a meaningful role in supporting medium enterprises has been through the Enterprise and The ESD Fund’s impact since inception to date is summarised trading in financial instruments in South small and medium enterprises (SMEs), and especially in supporting the Supplier Development Fund. below: Africa, OMIG is well placed to influence growth and sustainability of majority black- and women-owned stockbroking transformation across the investments businesses. Over this period, we have increased the percentage of total value chain. One of the critical sectors brokerage allocated to black- and women-owned stockbrokers, on a best that provides services to the asset execution basis, over 5.5 times to over 33% of all allocated brokerage. ESD FUND'S IMPACT SINCE INCEPTION TO DATE management industry is the stockbroking Our allocation to black-owned stockbrokers as a percentage of total sector. According to the Association brokerage is well above industry averages and we are proud to be a leader of Black Securities and Investment in developing black businesses in this sector. 29% R545m deployed Professionals (ABSIP) submission to the increase into SME investments (R343m) 2017 parliamentary hearings on Financial Average revenue and acceleration (R202m) increase across Sector Transformation, black-owned SMEs supported stockbrokers enjoyed a total market share TRANSFORMATION ALONG THE INVESTMENTS VALUE CHAIN of less than 2%. 5 2 funders R758m raised OMIG – % of Brokerage directed at stockbrokers with Optimal ESD for SME investments Total number of JSE >51% Black Ownership investment R190m spent in industry 55 provided Members (Equity Market) procurement from our supported SMEs 34.0 Total number of Majority 7 29.0 Black-owned Firms 783 Black Firms' SMEs developed 1.69% 75 500 hours market share 15.9 4 392 jobs supported of business support 1 226 jobs created provided to SMEs 6.1 Although these numbers are from three
years ago, we do not anticipate that the 2016 2017 2018 2019 Source: ASISA Enterprise and Supplier Development Impact Report June 2020 picture has radically changed much by • Currently in excess of 30% of the brokerage allocated on a best execution now. The share of black- and women- basis is allocated to stockbrokers with a minimum black ownership of 51%. owned stockbroking firms remains very low. • This percentage is significantly above the industry average and has a been a meaningful contributor to transformation in the South African stockbroking industry. 14 OUR BEE SCORE 15
OUR B-BBEE CERTIFICATE
TRANSFORMATION COMMITTEE COMMITTEE MEMBERS MANDATE CHAIRPERSON: David Lumby • To discharge its duties as the caretaker of the B-BBEE scorecard; - Tracey Hansen-Louw • To drive a transformation agenda that focuses beyond the - Tebogo Naledi B-BBEE scorecard, and embraces the commitment to making - Zulfa Abdurahman a meaningful difference to transformation issues within the investment industry. 16 TRANSFORMATION JOURNEY TRANSFORMATION JOURNEY 17
INCREASING BLACK AND WOMEN BUSINESS LEADERSHIP
The market we operate in is highly competitive in attracting and retaining the best talent and we make every effort to increase the diversity of our staff complement to match that of our increasingly diverse client base. And this needs to be most pronounced among our investment professionals. Our Transformation Committee oversees and governs the appointment of all staff to ensure our EE targets are met. We aim to have an increasingly diverse team of professionals that offer our clients an exceptional service.
BLACK OWNERSHIP AND SHAREHOLDING
Our current black ownership is at 25.2% while our ownership by black women is at 12.4%.
Our aim is to increase this level of black ownership in line with the Old Mutual Limited black ownership ambitions and targets. We are well on our way to OUR TRANSFORMATION reaching that objective.
JOURNEY RESPONSIBLE INVESTING IMPACT ON
A representative staff complement is critical to ensuring a competitive advantage for our business. CORPORATE TRANSFORMATION We have worked intentionally to harness black and female talent across the organisation, including As active stewards of our clients’ capital, we engage with investee companies our senior management and executive roles. We have also established committees that drive our continuously to influence their transformation agenda. Our proxy voting record transformation objectives throughout the business. For us, transformation goes much further than illustrates the various transformation issues we champion: these include board the B-BBEE scorecard. We have identified strategy pillars that we have committed to. composition, the configuration of B-BBEE transactions, BEE strategy and succession planning etc.
OMIG’S TRANSFORMATION STRATEGY PILLARS IMPACT INVESTING TO SUPPORT INCLUSION AND TRANSFORMATION
Our affiliates' investments in education, agriculture, affordable housing and DIVERSITY AND BLACK ACTIVE STEWARDSHIP infrastructure all align with our commitment to creating an inclusive and a DEMOGRAPHIC AND WOMEN WITH RESPECT TO transformed South Africa. These investments are a direct response to the social REPRESENTATION SHAREHOLDING TRANSFORMATION disparities that continue to predominantly affect our historically disadvantaged communities. By deploying our impact investments in this manner, we help to fuel job creation and give a myriad of opportunities to previously disadvantaged individuals. 18 OUR PEOPLE OUR PEOPLE 19
INVESTMENT ANALYST INVESTMENT LEADERSHIP DEVELOPMENT PROGRAMME (IAP) PROGRAMME
This is a long-term leadership development programme targeted The Investment Analyst Programme aims to develop HUMAN CAPITAL at our middle and senior managers. This programme is important and retain black individuals to become high quality in supporting our succession planning and enabling our black investment analysts, and in so doing, contribute professionals to progress as seasoned investment managers. UNDERGOING to building a strong black talent pipeline in OMIG. The intensive development programme is aimed GRADUATE ACCELERATED PROGRAMME (GAP) TRANSFORMATION at our junior analysts and was first implemented in 2013. It includes formal training to further GAP is an 18-month internship for graduates. It aims to attract, develop technical and interpersonal skills, as well develop and retain black graduates with a 95% success rate of - Tracey Hansen-Louw, as sponsorship in professional studies. This is a permanent employment after the completion of this programme. Human Capital Management Executive comprehensive programme including mentorship, GAP delegates, commonly referred to as trainees, are required to on-the-job assignments, and assessments. complete a learnership, such as a CFA qualification or Financial Markets and Instruments certificate.
Investing in the growth of black and female talent is paramount to our firm’s success and is a key ingredient in allowing us to deliver market-leading outcomes for our clients. While we have made great strides in the right direction, transformation in our organisation remains a top priority as we recognise OTHER DEVELOPMENT PROGRAMMES OFFERED THROUGH EXTERNAL BUSINESS SCHOOLS the opportunity to advance it further. AND PROFESSIONAL LEARNING PROVIDERS:
Senior Management Senior Management 2020 Programme 2019 Programme Four delegates One delegate sponsored OUR REPRESENTATION OF BLACK EMPLOYEES IN (Henley Business School) (Henley Business School) sponsored MANAGEMENT CURRENTLY STANDS AT: Middle Management Middle Management Programme (GIBS 2019 2020 Over the years, we have supported the Two delegates sponsored Programme Two delegates sponsored Business School) progression of talented black and female % 44 80% professionals into middle and senior Foundation Management Foundation Management 81% management positions. We are focused Programme (GIBS 2019 Programme (GIBS Business 2020 Two delegates sponsored One delegate sponsored on recruiting black and female talent and Business School) School) facilitating their personal and professional
SENIOR MANAGERS MIDDLE MANAGERS JUNIOR MANAGERS growth through skills development and 2019 2020 CFA Institute Seventeen delegates CFA Institute Twelve delegates mentorship programmes. sponsored sponsored
As at June 2020 Old Mutual Investment Group (OMIG) 2019 2020 employees are encouraged to deepen MBA programmes Three delegates MBA programmes Three delegates sponsored sponsored their knowledge and skills. To this end, 57.16% 28.58% we have created a variety of initiatives to develop investment talent. Formal learnerships: 30 delegates sponsored Part-time university studies: 28 delegates supported
Board members Board members with voting rights with voting rights are black are women 20 TRANSFORMATIONOUR PEOPLE JOURNEY IMFUNDO TRUST 21
RECRUITMENT
BLACK BLACK AFRICAN AFRICAN IMFUNDO TRUST: OCTOBER 2018 TO SEPTEMBER 2020 % WOMEN % % FEMALE % APPOINTMENTS 97% 57% 56% 32% LAYING THE FOUNDATION PROMOTIONS 82% 46% 29% 12% Black= African, Indian, Coloured FOR TRANSFORMATION SENIOR BLACK AND FEMALE PROFESSIONALS: Recruitments and Promotions over the past 2 years. Quality education is an integral part of unlocking the potential and possibilities EDUCATION IS THE MOST of one’s life. The Imfundo Trust provides deserving candidates with an opportunity POWERFUL WEAPON WE to realise and harness their potential CAN USE TO CHANGE THE through education. WORLD - Nelson Mandela "Imfundo" means education in the Nguni languages and effectively captures the SIBONISO NXUMALO KIEYAM GAMIELDIEN TEBOGO NALEDI SATHYEN MAHABEER Head: Old Mutual Equities Head: Customised Solutions Director of Institutional Business Director of Operations intent that has driven the activity of the Trust IMFUNDO is currently BCom (Hons); MBA (UCT) CA(SA); BCom BBusSc; BusFin (Hons) BSc Math Stats (Hons); FASSA over the past 10 years. It was established funding 22 students across in 2010, with the purpose of providing five partner universities financial assistance to black individuals intending to study for a relevant degree in order to operate in the South African OUR STUDENT DEMOGRAPHIC INFORMATION IS AS FOLLOWS:
investment field. As such, the Trust runs GENDER RACE UNDER-/ NEW OR a Scholarship Programme to give black POSTGRADUATE CONTINUING THABANI MZOBE SINENHLANHLA (SNE) ZOMUNODA CHIZURA NOKUTHULA SEDUMEDI undergraduate and postgraduate students Head: Market Risk DLAMINI Head: Impact Investing Head: Greenfields Male Female African Coloured Indian Under Post New Continuing Bcom Economcs & Client Director BSc Eng (Hons); MEng; MBA; CFA BSc (Hons); MSc (Building) access to tertiary education at a South Finance BBusSci(Hons) African university. 9 13 15 5 2 14 8 6 16 The above students are engaged in the following study programmes: From its first intake of students in the 2011 academic year, the Trust has invested some STUDY PROGRAMME DISTRIBUTION R39m in funding for its students, with over 100 students having graduated by the 3
end of 2020. For the 2020 academic year, 2.5
TEBOGO MOKGATA LEBOHANG PULE LOGGANDREE KELLY JOSHUA IMFUNDO is funding 22 students across 2 Head: Projects Impact Investing Head: Asset Liability Matching GOUNDEN-PEAD Head: Education five partner universities, i.e. the University BSc Hons (Town and Regional and Treasury Head: Credit BBusSc Finance (Hons); MDevF 1.5 Planning); MDP; PGDIP BSc Actuarial Science (Hons); BEconSc BCom; PGDA; CA(SA) (Development Finance) of Cape Town, Stellenbosch University, (Actuarial Science & Math Stats) 1 WITS University, University of Pretoria and 0.5 Nelson Mandela Metropolitan University. Imfundo is under the stewardship of four 0 trustees – Henk Beets (Chairman and Independent Trustee), Zulfa Abdurahman BSc (Hounours) BCom (Honours) BCom BCom Accounting BCom
(Head: Legal, Risk & Compliance), Tebogo LLB (Postgraduate) Naledi (Director: Institutional Business) Science B Accounting LLB Extended Programme LLB Extended BCom Accounting Science Accounting BCom BCom Financial Accounting BCom BCom Financial Accounting BCom BCom Economics & Statistics Economics BCom LANCE OSBURN ABDU-RAHMAN (MANIE) VUYO NTOI CHUMANI KULA and Khanyisa Diamond (Senior Project (CA route) Accounting BCom BBusSc in Management Studies
MD OMSFIN ABRAHAMS Joint MD: AIIM Co-Head: Private Equity (Honours) Science BSc Computer BBusSc (Actuarial Science); Joint Head: Debt Origination BCom (Hons); M.Sc; MBA BBusSc (Fin Hons); Bcom Manager for the Old Mutual Foundation). Postgraduate Diploma in Accounting Postgraduate FIA; FASSA; CFA BBusSc; HDip Tax; CA(SA); (Accounting Hons) CA (SA); CFA Math Stats (Hons); FASSA BEd Language & Media Studies (Honours) Postgraduate Diploma in Accounting (CA route) Diploma in Accounting Postgraduate BCom Investment Management Extended Studies Management Extended Investment BCom 22 23
IMFUNDO IS PROUD TO BE PROVIDING CRITICAL EDUCATIONAL SUPPORT, AND LOOKS FORWARD TO CONTINUING TO PROVIDE A SOLID PLATFORM FOR YOUNG BLACK PEOPLE TO IMPACT THE SOUTH AFRICAN INVESTMENT FIELD AND OVERALL ECONOMY. 24 TRANSFORMATIONIMFUNDO TRUST JOURNEY BLACK EXCELLENCE 25
SHOWCASING BLACK FEMALE EXCELLENCE IN ASSET MANAGEMENT
- NELISIWE NZAMA, Portfolio Manager
Cape Town IMFUNDO students with Sinenhlanhla Dlamini, Client Director in the Institutional Client Nelisiwe Nzama has 18 years of Investors benefit from higher premiums Management team, and Urvesh Desai, Portfolio Manager in MacroSolutions financial markets experience, collected while retaining the ability to developing and managing structured products, hedge participate in market returns. Administration of the Trust is In 2019, two-day workshops were “Engagement with story tellers funds and protected equity handled within OMIG while the offered in both Cape Town and was great and they brought their strategies. She joined day-to-day student management Johannesburg where 82% of our experience and used it very well to Old Mutual Investment Group in conditions allow. The portfolio and support is contracted to Study students gathered to meet and guide us in terms of making career August 2006 and has been the provides an uncorrelated source of Trust, an educational public benefit engage with some of our senior choices.” lead portfolio manager of the Old alpha. It is uniquely constructed to organisation that, among others, leadership in the OMIG business, “Thank you so much, I know a Mutual Premium Equity Fund since provide an attractive combination provides mentoring and support as well as to develop leadership lot of time and energy goes into its inception in November 2009. of equity outperformance (targeting to help the Imfundo students to and communication skills. Given planning events like these and I am Nelisiwe is a fundamental derivatives to outperform the FTSE/JSE Capped thrive academically and personally. the COVID-19 pandemic in 2020, extremely grateful for having had expert who uses these instruments SWIX Index by 2% over the long OMIG’s Human Capital Management we conducted our initiative online the opportunity to attend.” to produce consistent alpha in the term) with lower volatility than the department also runs various and 62% of students attended an “I leave here with so much growth strategy she manages. The Premium benchmark. initiatives with the student cohort. Ontological Leadership Workshop and confidence, which I will use to Equity portfolio has attracted over in August. Feedback from these Since inception in November 2009, have an impact in my community R6bn in clients' assets since inception. workshops has been consistently the fund has outperformed its “I love that the as well as any other setting I may positive, as indicated in the students’ The Old Mutual Premium Equity Fund benchmark, the FTSE/JSE Capped Old Mutual Investment find myself in.” comments: holds a diversified portfolio of blue- SWIX, by 2.3% per annum and has Group is involved with chip equities listed on the JSE, and done so with less volatility than the “Thank you so much for this gathering. Imfundo is proud to be providing our generation is constructed to create a suitable benchmark, resulting in better risk- and I am really empowered and ready critical educational support in platform for alpha generation. The adjusted returns. contributes to our to deal with every challenge that South Africa, and looks forward to overall performance of the portfolio lives in ways that are stands in my way.” continuing to provide a solid platform for young black people to impact is enhanced by selectively capturing not just academically “I attend a lot of workshops and this the South African investment field option premiums where market concerned.” was by far one of the best.” and overall economy. 26 TRANSFORMATIONBLACK EXCELLENCE JOURNEY BLACK EXCELLENCE 27
SG: You mentioned that seeing measured by annualised volatility, SG: How do you handle the pressures CUMULATIVE RETURNS SINCE INCEPTION TO SEPTEMBER 2020 the Old Mutual Premium Equity when compared to the benchmark, that come with managing a Fund’s success has been a career while generating meaningful excess successful equity fund? 380 highlight. Please elaborate on the returns. NN: Although the fund has performed fund’s successes. well relative to peers, during periods 330 The chart on page 28 shows that since NN: The Old Mutual Premium Equity of market uncertainty I do feel the 2800 inception, the Old Mutual Premium Fund has performed exceptionally pressure of navigating a difficult Equity Fund has not only captured period. Staying focused and 230 well relative to its benchmark and 55% of the upside in rising equity disciplined has helped me a great peers – most notably in 2018, 2019 markets, but very importantly, it has 180 deal and enabled me to manage the and 2020 to date. protected capital by only capturing 130 Old Mutual Premium Equity Fund 77% of the downside in falling The chart below illustrates that to being ranked number 1 in South equity markets. This is in line with 80 Africa among actively managed over the 10 years since inception to the fund’s objective to outperform equities over a 10-year period. September 2020, the Old Mutual
Oct-09 Oct-10 Oct-11 Oct-12 Oct-13 Oct-14 Oct-15 Oct-16 Oct-17 Oct-18 Oct-19 the benchmark over time with less Premium Equity Fund has had volatility. a significantly lower level of risk, Premium Equity Benchmark
We caught up with Nelisiwe Nzama on her career and growth in asset RETURN RELATIVE TO RISK SINCE INCEPTION - SEPTEMBER 2020 management, starting at the beginning – as a pioneering candidate set for growth and accountability in a transforming industry. 14.0% Premium Sanelisiwe Gantsho: How did you SG: How did you apply on-the-job launch of the fund was a culmination Equity get into the investment industry? training, your expressed interest in of conceptualising and backtesting, 12.0% fund management and academic Benchmark NN: I started out in employee and I am proud to have been part of knowledge to grow your career? 10.0% benefits and in 2006, I made the the infant stages of this fund. My career NN: In each role, probably more so intentional career change into the highlights have been the periods earlier, I embraced assistant roles that 8.0% asset management industry when I of the fund’s exceptional success complemented the output of the was recruited into an entry-level role over more than a decade. Up until senior and experienced colleagues 6.0% at Metropolitan Asset Management. in the team. This is an undertaking 2018, the fund was co-managed and A year later I had an opportunity to that does not involve being in the working collaboratively supported my 4.0% join Old Mutual Customised Solutions limelight but one that greatly enriches growth as an investment professional as a structuring quantitative analyst, perspective and skills development in managing a unique South African 2.0% forming part of a niche and technical preparation for being a fund manager. equity fund. team managing products that are 0.0% still in existence today, such as our In 2009, the launch of the Old Mutual 12.0% 12.2% 12.4% 12.6% 12.8% 13.0% 13.2% hedge funds and absolute return Premium Equity Fund was my big funds including Old Mutual Wealth break where my passion, hard work Defender. and training came full circle. The 28 TRANSFORMATIONBLACK EXCELLENCE JOURNEY EMPLOYMENT EQUITY AND DIVERSITY 29
80% 72.0% SHAPING A 70% FUTURE THAT MATTERS
- SINENHLANHLA DLAMINI, Client Director
Promoting diversity is an important Sanelisiwe Gantsho: ... the key to unlocking component of transformation and The newly elected EE Forum progress is an evidenced directly influences the future that is kicked off its work at the start of worth investing in. As such, this business this year – where did you start? effort by direct priority is top of mind at OMIG, both SD: An important first step was to influencers. within teams and within the various understand the role of the EE Forum of staff members only knowing that occupational levels. Diversity and as intended by the employment an EE Forum exists and not knowing inclusion are particularly important equity (EE) legislation and to align how to engage with it. This led to in South Africa where the legacy of the Forum’s activities with the the creation of a new engagement exclusion is still prevalent. To address requirements of the legislation. this in the workplace, we are guided model where EE Forum members by the South African government We decided that if we are going to were given responsibility for specific through the Employment Equity Act do this, then we should do it properly. business areas to ensure that we have 55 of 1998, including amendments In aligning ourselves closer to the full coverage across OMIG Holdings. and applicable regulations. legislation, we reviewed the Forum’s The representatives solicit on-the- Terms of Reference and found that ground feedback from employees, While progress remains inadequate the document needed refinement which we see as very important with many organisations trying to on some key employment equity because at the heart of it, diversity is diversify the workplace, the key to principles, such as creating awareness about the employees of this business. unlocking progress is an evidenced of the EE Act, the elimination of unfair SG: How would you describe the effort by direct influencers. This requires discrimination, and equal pay for CUMULATIVE RETURNS SINCE INCEPTION role of the EE and Diversity Forum? the business to view diversity differently equal work. We saw this as a critical SD: Through various engagements 80% 73.1% The South African asset management industry hasn’t – as an investment opportunity that first step, as the Terms of Reference 70% yet fully embraced the advantages that derivatives drives value beyond the requirement are a foundational element of the it’s become apparent to us that 60% 54.4% can bring relative to more traditional approaches to of compliance. Forum’s work and we believe that a the role of the EE and Diversity 50% investing. Dispelling inaccurate perceptions about the solid foundation enables an effective Forum is not always clear to staff 40% fund is key to the attraction of more clients. The use We caught up with Sinenhlanhla Forum. and we’d like to use platforms like 30% of derivatives is often associated with risk, which has Dlamini, Client Director, who has this publication as an opportunity to 20% been at the cusp of the Forum’s We also recognised the opportunity educate and bring awareness. The 10% required us to take an educational approach when evolution, restructure and solidifying for increased staff engagement, EE and Diversity Forum’s role is to 0% engaging clients on the strategy. Upside Capture Downside Capture its role at OMIG. mitigating the common experience consult with staff on employment 30 TRANSFORMATIONEMPLOYMENT EQUITY JOURNEY AND DIVERSITY EMPLOYMENT EQUITY AND DIVERSITY 31
equity and diversity matters that where employees are engaged and the retention of black and female ask ourselves how it can be incorporated into our context. Thankfully, this has been the response across the affect them and, together with the inspired to perform at their very best. talent with a crystallised plan is a Old Mutual Group and we are aligned with advocating for awareness, dialogue and training on unconscious bias. principles outlined in the EE Act, use major challenge. This is especially Most importantly, we’d like to play our part in assisting the business to implement policies and procedures that have this to encourage the leadership of SG: Since taking on the position as true for the investment teams, a positive, high impact on the diversity and inclusion culture that we seek to collectively build. the business to implement equitable Chairperson and consolidating the where transformation has been slow representation and fair treatment efforts made in previous years, what across the investment management at all levels and categories of are the deliverables that stand out? industry. Black females in particular employment. An important aspect SD: We had only had one meeting as are underrepresented in investment EMPLOYMENT EQUITY AND DIVERSITY FORUM MEMBERS of this role is providing the business a Forum when OMIG implemented teams and even those who get analyst with feedback on the proposed the work-from-home policy 10 days opportunities rarely progress to targets in the Employment Equity before the national lockdown, so our become portfolio managers. We have Plan, which are revised every three ability to be agile and continue with plans to understand these issues at a years. It’s important to note that the work of the EE Forum throughout deeper level, opening room for a more OMIG’s executive leadership has lockdown has been a big win. proactive strategy so that feedback overall responsibility for employment is obtained earlier, rather than at equity and creating an environment As mentioned earlier, re-writing our the exit interview stage. We need to that enables diversity. The EE Forum's Terms of Reference and implementing unearth reasons why retention is a role is to facilitate and promote a new staff engagement model was challenge particularly in investment SINENHLANHLA (SNE) DLAMINI MATHETHA BOPAPE MARIAM EBRAHIM ANGELIQUE MCGREGOR Chairperson Co-deputy Chairperson Co-deputy Chairperson (OMIG) diversity and inclusion by consulting a strong start for us. Foundational teams, and the role of unconscious with employees and management. work is not immediately visible but bias in perpetuating this challenge. in the long term it has a high impact. SG: How do you lead the inclusion SG: 2020 is the year of COVID-19 – a narrative in a way that allows for In July, the Forum also provided formal revealer and a catalyst to innovative the EE Forum to follow through on written feedback on OMIG’s EE Plan, thinking. How can these changes its objectives? which was also a combined effort by be used to tackle the subtleties of SD: Often, people think that matters Forum members. The submission employment equity? of transformation, employment equity placed strong emphasis on the need SD: One of the long-standing to reach the EE targets that the MEAGAN WOLHUTER VISHAL BHIKHA SHIVAAN HARRIS WELILE MAVUNDLA and diversity are an exclusion exercise. challenges to transformation (OMIG) (OMIG) (OMIG) (OMIG) From the beginning of our term, we business has set and the proactive of the investment management were very clear that this work is about retention of black and female industry has been the Cape Town inclusion, not exclusion. With inclusion employees, as well as those with vs Johannesburg mobility challenge. as our point of departure, we’d like disabilities. Another one of our key OMIG has displayed exceptional to see staff take a greater interest in recommendations was the review of preparation and leadership in the meaningful conversations around roles to ensure alignment of role sizes COVID-19 crisis with a fully equipped diversity across all the available and output. This is key to retention, and functional team working from platforms in the business. We’d like as it manages instances where staff home well before the announcement ARTHUR KARAS RUCHIR SEVERAJ BERNISHA LALA SELINA NALANE to assist the business in creating a members may be performing at a of the national lockdown. There’s an (OMIG) (OMIG) (OMIG) (OMAI) safe space for authentic dialogue more senior level than their role sizes/ opportunity for businesses like ours to around some of the difficult topics titles imply, thus allowing staff to grow think about new models of working like unconscious bias. Regardless of and progress within the business. that can advance our employment whether one has experienced unfair equity ambitions. During this crisis, SG: The asset management industry discrimination or not, we can all we also saw the #BlackLivesMatter still has a long way to go in shifting find our place in the movement for movement come alive globally. change towards an inclusive society. the dial on employment. What would And very importantly, we’d like to you say are the most challenging As the EE Forum, we have challenged GREG COE CHANINE WILLIAMS HASHIM POHPLONKER TANUSHA ROUNCIVELL (OMAI) (OMAI) (OMSFIN) (OMSFIN) see the change – not just in the EE tasks facing OMIG? ourselves to take the spirit of the numbers, but in an inclusive culture SD: Steering an active effort around #BlackLivesMatter movement and 32 STEWARDSHIP AND ALTERNATIVE INVESTMENTS STEWARDSHIP AND ALTERNATIVE INVESTMENTS 33
OMIG TACKLES TRANSFORMATION HEAD ON
- Robert Lewenson, Head of ESG Engagement
At OMIG, our approach to active THE STRENGTH OF We see this not only as part of our ownership and stewardship draws THE LISTED EQUITY investment duty to ensure value from the King IV Code on Corporate STEWARDSHIP creation on behalf of our clients, Governance (King IV), the governance APPROACH IN TACKLING but also the strengthening of social provisions in the South African TRANSFORMATION cohesion and corporate citizenship in Companies Act 71 of 2008, the JSE the market. Our yearly letters to CEOs The UNPRI article “Active Ownership Listing Requirements and the Code from our leadership team evidence 2.0” sets the global scene and makes for Responsible Investing in South a clear request of the CEOs of listed that are subjected to strict licensing to focused engagement with the to determine whether in fact they are the case for a vision of an evolved Africa (CRISA). Our approach also companies to engage wholeheartedly requirements and/or issues pertaining companies which are laggards in broad based in their construction. standard in stewardship which incorporates the definition of “active on the topic of transformation as part to doing business with Government both high and low BEE risk sectors. There is mounting evidence that a explicitly and actively prioritises ownership” in the Guidance Notice 1 of their respective business strategies. or strictly regulated businesses); company that transforms its human critical systemic goals and collective of 2019 (PFA) issued by the Financial and those sectors that have a lower THE INVESTMENT capital as a concerted strategy from its effort aimed at concrete outcomes, leadership down, may perform better Sector Conduct Authority, as well ANALYSIS BEYOND A but an increasing BEE risk (firms in RISK OF INADEQUATE rather than processes and activities financially, manage its risks more as international guidelines such as SCORECARD these sectors don’t have a direct PRACTICE or narrow interests. effectively and generate additional the United Nations Principles for licence to operate risk; nevertheless The investment risk of losing a licence An extensive amount of work has opportunities from having a variety Responsible Investment, and the Responsibly using our size and they are coming under increasing to operate for poor transformation been done analysing companies of voices heard in decision-making International Corporate Governance scrutiny both from labour unions influence at OMIG to drive change listed on the Johannesburg Stock practices is a key concern, but we also Network (ICGN) Global Governance and Government). and consistent outcomes has Exchange (JSE). Having performed see it as every company’s responsibility With this in mind, our engagement Principles (2017) and Global been realised through managing research analysis in determining the to transform their supply chain and strategy with our investee companies Stewardship Principles (2020). We then score the leaders and approximately R300bn of our clients’ B-BBEE score of companies in the provide skills development to their would include not only the setting laggards per sector to formulate a listed equity, as well as significant JSE Capped Shareholder Weighted workforce. The development of of internal targets linked to diversity deeper understanding of the factors Transformation followed holdings as part of our listed equity Index in 2018 and 2020, we are able to SMMEs is also an essential part of and inclusion, but also to link these on each company’s scorecard where through properly, allows service (LES) capability. We recognise assess which companies and sectors being a responsible corporate citizen targets to executive remuneration they perform well or poorly. We and accept our role to significantly perform better or worse in terms of – particularly so in light of the current and disclose progress towards these for meaningful change focus on engagement on matters influence the transformation of the their transformation strategies. economic situation in South Africa. targets to the public. that can be driven in South African listed market and of transformation and the evolution the economy and the engage with our investee companies We distinguish between sectors of the stewardship service by using We favour companies proposing BEE societies we operate in. on the issue of transformation. that have a high BEE risk (those the findings of research, leading deals holistically. Our primary aim is 34 STEWARDSHIP AND ALTERNATIVE INVESTMENTS STEWARDSHIP AND ALTERNATIVE INVESTMENTS 35
TAKING TRANSFORMATION TO ALTERNATIVE INVESTMENTS
- Dean Alborough, Head of ESG at OMAI
Across the Old Mutual Alternative The overall representation of HDSAs across the jobs Investments (OMAI) portfolios, at created by OMAI investments reaching 77% as at the an aggregate level, we track the end of 2019 is commendable progress, but there is overall representation of Historically further room for improvement. Disadvantaged South Africans (HDSAs) in our investments, and Schools and Education Impact Investment Fund of Transformation and empowerment the representation of female and South Africa (SEIIFSA) have always been business IMPACT INVESTING male HDSAs in management. The Transformation and empowerment have always been imperatives in SEIIFSA ... overall representation of HDSAs Housing Impact Fund South Africa (HIFSA) business imperatives in SEIIFSA to achieve the two main across the jobs created by OMAI The fund manager has accomplished the following transformation goals to date: objectives of producing commercial returns and improving
investments reaching 77% as at – In 2019, HIFSA instituted a process of standardisation and formalisation access to quality school education within South Africa. – Linking those targets to incentives, penalties or other the end of 2019 is commendable in tracking the procurement spend across all projects. Procurement policies actions that may in themselves be transformative and The primary measurement tool has been an in-house progress, but there is further implemented require that preference be given to B-BBEE compliant or financially beneficial to SEIIFSA, e.g. bursaries to developed Transformation Scorecard for the investee room for improvement. The 37% suppliers. black learners entities. In June 2020, the fund manager proposed a and 18% HDSA representation in – 61% of the Greenfields portfolio has 51% or more black ownership. – Constructively exercising its influence through (for new transformation framework which considers both the management by male and female – As at June 2018, only 22% of HIFSA’s rental managers were BEE rated. instance) its board representation in investee entities letter and the spirit of transformation. This framework is employees respectively is a key area Currently, 100% are rated with 67% rated level 4 and above. to facilitate positive transformation outcomes intended to be holistic and inclusive and aims to assist where further strides of reducing – 68% of the rental portfolio is managed by companies that SEIIFSA in achieving improved transformation outcomes. – All new appointments within untransformed inequalities are needed. This will are more than 51% black owned. management teams to be from designated groups continue to be a focus area for OMAI – Between 60% and 100% of capex spent on our developments is through The fund manager has pursued the following measures – Tracking annual operational and procurement spend per going forward. Alongside are specific level 4 B-BBEE and/or above 51% black-owned service providers. where appropriate: deal to transformed entities, to be consolidated on a examples in the Impact Investing – Greenfields portfolio black directors on investee company boards are – Embedding specific transformation targets in the fund level and Infrastructure capabilities that at 30%. legal agreement of investments to facilitate positive – Tracking and reporting appropriate transformation highlight transformation progress. – Rental portfolio black directors on investee company boards are at 41%. transformation outcomes metrics. 36 STEWARDSHIP AND ALTERNATIVE INVESTMENTS HOUSING 37
Transformation status as at June 2020: IMPACT INVESTING 55% 95% 51% 52% THROUGH HOUSING FOR SUSTAINABLE TEACHERS IN LEARNERS IN STAFF IN MANAGEMENT INVESTEE BOARD THE FUND'S SCHOOLS THE FUND'S SCHOOLS POSITIONS ARE BLACK DIRECTORS ARE BLACK ARE BLACK ARE BLACK CHANGE IN SOUTH
TRANSFORMING INFRASTRUCTURE AFRICA AT AIIM - Tebogo Mokgata, African Infrastructure Investment Managers (AIIM) Head of Projects – Impact Investing oversees a portfolio of 26 utility-scale renewable energy assets forming part of South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPP). Each of these assets has made significant transformation commitments in their implementation There is a sizeable investment participation in impact agreements, in addition to their positive contribution ... to stimulate interest in opportunity for affordable housing, investments is an effort to the provision of clean energy. socially themed fixed income especially in emerging markets like to create and provide investments, including South Africa where there is a growing innovative development These assets report quarterly on their progress with affordable housing and other regard to transformation on several fronts, including job but underserviced component of finance solutions to environmentally suitable creation specifically for HDSAs, value of local content lower to middle-income households. unlock private capital for spend, HDSA and community ownership, preferential The housing shortage in South Africa social and environmental developments. procurement, as well as enterprise development (EnD) is estimated to be 2.3 million housing purposes, as well as and socioeconomic development (SED) initiatives. In units. This is largely due to the historic achieving market-related 2019 alone, AIIM assets provided over 5 000 HDSA jobs, shortage brought about by apartheid returns for investors. Some of the putting in place policies that support spent over R600m on B-BBEE procurement and deployed AIIM ASSETS PROVIDED planning policies and the high rate innovation that has emerged includes the objectives of impact investing and assist in achieving sustainable R33.3m in enterprise development and R70.7m in socio- OVER 5 000 HDSA JOBS, of urbanisation as seen in many the issuance of green bonds, which are economic development programmes. Cumulatively developing countries. instruments used to stimulate interest development goals (SDG). They are since 2014, AIIM assets have deployed over R450m SPENT OVER R600M ON in socially themed fixed income increasingly prioritising energy and The McKinsey Global Institute in programmes aimed to stimulate and support local B-BBEE PROCUREMENT investments, including affordable location-efficient projects that focus estimates that globally, investments of businesses and provide much-needed socioeconomic housing and other environmentally on environmental quality and the AND DEPLOYED R33.3M IN between US$9trn and US$17trn are support to previously disadvantaged communities. suitable developments. environmental footprint of housing EnD AND R70.7M IN SED required by 2025 to replace existing developments. In addition to the above, AIIM developed an innovative PROGRAMMES. substandard housing stock and for Through impact investments, private funding structure to address inequalities in the the acquisition of land to develop capital is allocated towards social infrastructure sector in South Africa and specifically additional stock. Governments, DFIs infrastructure such as housing in projects of strategic interest. The funding structure and private investors are involved and it supplements governments’ facilitates black ownership of assets at portfolio company in expanding credit and product delivery for lower- to middle-income level, but also the establishment of black-owned access to lower income households. households. Governments in both contractors to undertake major works of infrastructure In addition, the private sector’s developed and emerging markets are to build black-owned businesses in the renewable energy sector. 38 HOUSING HOUSING 39
ALTERNATIVE INVESTMENT HOUSING CASE STUDIES OMAI’s Housing Impact Fund South Africa (HIFSA) is a co-investment between Old Mutual Life Assurance Company South Africa, the Government Employees Pension Fund (managed by the Public Investment Corporation), the Development Bank of Southern Africa and the Eskom Pension and Provident Fund. HIFSA’s mandate is to invest in affordable housing stock while achieving market-related, risk-adjusted returns for investors.
STUDENT ACCOMMODATION WITH SOUTH POINT HIFSA has an investment in one of South Africa’s largest student housing operators. HIFSA is invested in 50% of South Point's student housing portfolio. The investment is aligned to the objectives of the fund to provide quality affordable student accommodation that is conducive to learning and similar to those found on university campuses. The investment yields 6 000 beds in 18 buildings, where the largest facility has 1 142 beds. Real estate investments in student towns such as Braamfontein have been a catalyst for urban regeneration drawing in other new investors into the area, notably improving the appearance and safety elements.
INNOVATIVE HOUSING WITH URBIKA THE INVESTMENT YIELDS Urbika Lifestyle Estate is located in Parkdene, Boksburg Through the design interventions, the environmental of Human Settlement, who has provided a partial bulk quality of the development is conducive to communal infrastructure subsidy. Of the 18 000 affordable housing 6 000 BEDS IN 18 BUILDINGS, in Gauteng, South Africa. It is a modern, eco-friendly, affordable middle-income residential housing living because of the design of the common spaces. It opportunities 6 200 will be fully subsidised housing (FSH) WHERE THE LARGEST FACILITY development. The development is enrolled for EDGE is a lively community. The development also uses grey units for government beneficiaries and the remaining HAS 1 142 BEDS. (Excellence in Design for Greater Efficiencies) certification water for irrigation, has indigenous plants, has solar panels 11 800 are affordable bonded housing units, some of which that generate electricity and uses technology to manage as the development attains 20% savings on water qualify for the Finance Linked Individual Subsidy Programme utilities and ensure efficiency. consumption, 20% on energy consumption and 20% (FLISP). The development promotes the concept of inclusive on embodied energy used in building materials above and integrated housing. The masterplan accommodates the national building standard. Urbika Lifestyle Estate SAVANNA CITY DEVELOPMENT private and government schools, retail centres, community consists of 325 affordable rental apartment units and Savanna City is a housing development in the south of centres such as libraries and clinics, as well as public open 259 affordable to middle-income housing units. The Gauteng which is positioned to deliver approximately spaces. Savanna City is a prime example of private investors development also has an affordable private school 18 000 affordable housing opportunities. The development working together with Government to supply housing to that services the Urbika community and its surrounds. has been done in partnership with the Gauteng Department address the national shortage. 40 CSI CSI 41
At Old Mutual Investment Group (OMIG), we invest for a future that GREEN HANDS – matters. For our clients, our focus is on delivering market-beating and risk- THE HEART OF adjusted returns, being responsible stewards of the assets we manage CORPORATE SOCIAL and benefiting the communities we serve. For our communities, we strive to identify their needs INVESTMENT and lend a hand by contributing in many different sectors, such as - Zulfa Abdurahman, Chief Risk Officer education, community upliftment, skills development and sport.
Established in 1998, the Old Mutual Investment Group Green Hands Trust is responsible for coordinating the social development investmentswithin the Old Mutual Investments cluster.
Our aim is to entrench corporate social responsibility into the Old Mutual Investments culture. Being socially We do so by encouraging employees required, the NRC submits large responsible is everyone’s responsibility to propose CSI initiatives that are close funding requests to the Green Hands and we strive to promote this culture to their hearts for us to fund. Once Board of Trustees, who then makes and to positively impact the many approved, the employee manages the final decision. Only Old Mutual communities that are in desperate the delivery of the need directly with Investment Cluster staff members Our approach to need of our helping hands. the sponsored initiative. In that way, are allowed to coordinate projects corporate social investment our employees give their time to a and it is essential that they take (CSI) is to focus on a very strong cause that is dear to them, while responsibility for the submission employee volunteerism culture. PURPOSE THAT GOES BEYOND BUSINESS we provide the funding to initiatives and management of these projects. Rather than waiting on the world to that will deliver a sustainable, long- Green Hands is more than just a change, we facilitate opportunities for our lasting impact. Through Green Hands, a registered people to lend their resources – be it their hand-out and a smile; it is about staff trust and public benefit organisation, time, money or their skills and expertise – to rolling up their sleeves and working THE SELECTION we contributed to 13 projects in help improve the lives of the communities together with the communities, 2019, benefiting 1 364 recipients and PROCESS around us that need a helping hand establishing effective partnerships and deploying a total of R1.4m. most. We also partner with capable fostering self-sustainability among Before deciding which projects to organisations and programmes to recipients. Green Hands is charged support, Green Hands engages in a The old adage of "teaching someone make a real and sustainable with taking central responsibility for thorough evaluation, which includes to fish rather than handing them difference. the social development investments site visits (where applicable). The the fish" rings true to the Green and initiatives within OMIG and is New Requests Committee (NRC) Hands philosophy. Green Hands tasked with managing the funding carefully sifts through all requests is committed to building thriving of initiatives and worthy projects. and evaluates them based on specific communities, improving people’s criteria such as the community they lives, and supporting the long-term Our aim is to be a force for good in operate in, reference checks and success of our business. society and to entrench corporate the institution’s registration details. social responsibility into our culture. Depending on the amount of funding 42 HOUSINGCSI CSI 43
the unsung heroes, and secondly, to overcome poverty, unemployment and inequality, the Rally to Read’s single goal of improving literacy at grassroots PASSION IN level is not only admirable but necessary. Through Green Hands’ funding, staff delivered books, teaching aids, science kits, sports equipment and educational ACTION toys to the value of R145 000 to these rural schools GREEN HANDS PROJECTS
MEDIA CENTRE – MONDALE HIGH SCHOOL One of our standout staff-led initiatives was the official opening RALLY TO READ: of the media and resources centre GIVING HOPE TO RURAL at Mondale High School in Mitchell’s SCHOOLS Plain. Naomi Samaai, an employee Employees spent a weekend with STREET STORE: POP- within the portfolio implementation Rally to Read giving hope to twelve UP CHARITY FOR THE team, approached Green Hands with different schools in the Breede River HOMELESS a request to fund the set-up of this Valley, a far-flung rural area where In the spirit of Human Rights Day, Green media centre. We deemed this a education budgets almost never Hands partnered with the Haven Night worthy initiative to support, having HELP2READ ON MANDELA DAY reach. The staff arrived at the crack of Shelter and hosted our very own pop-up identified a substantial need for these Illiteracy in South Africa is at crisis level. Statistics show that 78% of grade dawn and were immediately struck by street store where the homeless had an high school students to have a safe four learners are not able to read at grade level in South Africa. Regular the conditions in which these schools opportunity to shop for clothing for free! space to do their homework and one-on-one reading with learners is the most effective way to combat this. have to function. The staff took in the The street store concept was founded access computers and the internet surroundings – small and tattered in 2014 right here in Cape Town, as “the for learning. Naomi worked with the That’s why we decided to get involved with Help2Read on Mandela Day. classrooms accommodating two world’s first rent-free, premises-free, school to identify service providers Volunteers across the Old Mutual Investments cluster visited Thornton grades per class, children with foetal pop-up clothing store for the homeless”, while we provided the funding. The Primary School to spend their 67 minutes reading to learners. In partnership alcohol syndrome and broken shoes found entirely on the street and stocked vision of the school is to open the with Help2Read, the volunteers interacted with learners and promoted the having to walk over an hour every day by donations. Staff donated their gently media centre to the community for importance of reading. Green Hands also sponsored educational resources to school. Straightaway, it became worn clothing towards this cause and night school, making it a force for to the school. It was a fun and rewarding way for staff to spend their very clear that firstly, the teachers that gave time on the day to host it. It was good for many generations to come. 67 minutes. show up day in and day out truly are highly successful and rewarding. 44 HOUSINGCSI CSI 45
STARS OF TOMORROW: African leaders rise up to lead and adequate sanitation facilities. EMPOWERING OUR the country into its glorious full This is equivalent to one week of IT MAKES US PROUD CHILDREN WITH DIGITAL potential. Together with IEDT, Green schooling every month putting them TO BE PART OF AN SKILLS AND HOMEWORK Hands selects the most promising at a financial and an educational SUPPORT learners with high leadership disadvantage compared to boys ORGANISATION OF potential and provides funding for and setting them up for a lifetime The Stars of Tomorrow Computer of disempowerment. Keeping girls Centre, situated at the Makhaza high quality schooling, primarily PEOPLE WHO FREELY in school is important to their health Library in Khayelitsha, was established at the secondary level, together and development – not only for the in 2011. It was initiated to empower with a mentorship programme and OFFER GENEROSITY girls but for their communities too. the previously disadvantaged with leadership development camps. technology skills as well as providing Green Hands funds the education To this end, and in honour of Women’s IN TIMES OF NEED. computer services to the community. of five disadvantaged learners and in Month, Green Hands partnered with It offers computer training to adults in 2019, R383 710 was spent on school Old Mutual Investment Group and the mornings. During the afternoons, fees, uniforms, mentorship and other donated R25 000 towards sanitary towards the development of a full it runs a school programme for associated costs. Furthermore, we pads for female learners at Mount resource centre. This will enable the learners from Grade R to Grade are supporting six students this year, View Senior Secondary School and learners and community to close 12. This programme includes help having paid R443 710 in 2019 and Crystal Senior Secondary School in the technology gap as required for with their homework and computer an additional R466 010 this year Hanover Park, Cape Town. future studies. lessons in preparation for school. for 2021. Green Hands sponsored R46 953 THE BLANKET DRIVE FEEDING SCHEME towards computers to support the IQRA ACADEMY In the heart of winter, a little warmth BRIDGING THE DIGITAL centre in teaching more students IQRA Academy was established The COVID-19 pandemic has was spread when staff members DIVIDE AT DURBANVILLE on a daily basis. 21 years ago, where the school disrupted all our lives and more so raised money towards the purchase CHILDREN’S HOME predominantly draws its learners the lives of vulnerable people in our of blankets to donate to those most Durbanville Children’s Home was from the extensions of Belhar, communities. As a consequence of in need in South Africa. Green Hands initiated by two Sunday school Elsies River, Delft, Ravensmead this pandemic, many thousands of matched the staff donations and in teachers in 1883 and moved to and Bluedowns. They undertook children in our country have lost the 2019 we raised R163 878. Some of the Durbanville in 1919. As a registered to address the mammoth task of one school meal they depend on. organisations that benefited include institution of care, it looks after 144 providing an ethical-based and a IRIS House, a children’s hospice vulnerable children between the qualitative education programme Elnor Primary School, in the poverty- which provides respite, overnight ages of two and 18 years placed by to disadvantaged learners, with the stricken Elsies River area, opened its and end-of-life care for special needs court orders. Their ultimate goal is emphasis on character refinement doors to feed needy children and children with health challenges and/ to restore traumatised children to and the development of positive was in desperate need of donations or life limiting conditions, and Rescue healthy family relationships. mindsets and leadership, where to fund the feeding. We felt a Among Many (RAM), which provides emotional intelligence and spiritual heartfelt need to assist those who support to children and elderly in the Green Hands donated R136 102 growth are of paramount importance. are far less privileged than us and, rural areas of the Western Cape. towards the purchase of computers The school, however, needs to together with our employees, raised for this home. The children were meet the challenges to provide R213 000 towards feeding projects. in awe and couldn’t wait to start INHLAKANIPHO sufficient resources and the necessary With this financial support, Elnor enhancing their digital skills. EDUCATION AND infrastructure that will guarantee high Primary School undertook to expand DEVELOPMENT TRUST: standards of education, training and and resource its kitchen in order to SUBZ PANTS AND PADS ENABLING THE FUTURE personal development to serve the feed even more needy children. KEEP GIRLS IN SCHOOLS GENERATION community effectively and efficiently. The vision of Inhlakanipho Education Teenage girls living in poverty can It makes us proud to be part of an and Development Trust (IEDT) is lose up to five days of schooling due In support of the school’s plight, organisation of people who freely to see new generations of South to a lack of access to sanitary wear Green Hands sponsored R262 608 offer generosity in times of need. FOR MORE INFORMATION OLD MUTUAL INVESTMENT GROUP Mutualpark, Jan Smuts Drive, Pinelands 7405 [email protected] Tel: +27 (0)21 509 5022 oldmutualinvest.com
The following entities are licensed Financial Services Providers (FSPs) within Old Mutual Investment Group Holdings (Pty) Ltd approved by the Financial Sector Conduct Authority (www.fsca.co.za) to provide advisory and/or intermediary services in terms of the Financial Advisory and Intermediary Services Act 37 of 2002. These entities are wholly owned subsidiaries of Old Mutual Investment Group Holdings (Pty) Ltd and are members of the Old Mutual Investment Group.
• Old Mutual Investment Group (Pty) Ltd (Reg No 1993/003023/07), FSP No: 604 • Old Mutual Customised Solutions (Pty) Ltd (Reg No 2000/028675/07), FSP No: 721 • Old Mutual Alternative Investments (Pty) Ltd (Reg No 2013/113833/07), FSP No: 45255 • African Infrastructure Investment Managers (Pty) Ltd (Reg No 2005/028675/07), FSP No: 4307
Market fluctuations and changes in rates of exchange or taxation may have an effect on the value, price or income of investments. Since the performance of financial markets fluctuates, an investor may not get back the full amount invested. Past performance is not necessarily a guide to future investment performance. The investment portfolios may be market-linked or policy based. Investors’ rights and obligations are set out in the relevant contracts. Unlisted investments have short- term to long-term liquidity risks and there are no guarantees on the investment capital nor on performance. It should be noted that investments within the fund may not be readily marketable. It may therefore be difficult for an investor to withdraw from the fund or to obtain reliable information about its value and the extent of the risks to which it is exposed. The value of the investment may fluctuate as the value of the underlying investments change. In respect of pooled, life wrapped products, the underlying assets are owned by Old Mutual Life Assurance Company (South Africa) Ltd, who may elect to exercise any votes on these underlying assets independently of Old Mutual Investment Group. In respect of these products, no fees or charges will be deducted if the policy is terminated within the first 30 days. Returns on these products depend on the performance of the underlying assets.
Disclosures: Personal trading by staff is restricted to ensure that there is no conflict of interest. All directors and those staff who are likely to have access to price sensitive and unpublished information in relation to the Old Mutual Group are further restricted in their dealings in Old Mutual shares. All employees of the Old Mutual Investment Group are remunerated with salaries and standard incentives. Unless disclosed to the client, no commission or incentives are paid by the Old Mutual Investment Group to any persons other than its representatives. All intra-group transactions are done on an arm’s length basis. We outsource investment administration of our local funds to Curo Fund Services (Pty) Ltd, 50% of which is owned by the Old Mutual Investment Group Holdings (Pty) Ltd.
Disclaimer: The contents of this document and, to the extent applicable, the comments by presenters do not constitute advice as defined in FAIS. Although due care has been taken in compiling this document, Old Mutual Investment Group does not warrant the accuracy of the information contained herein and therefore does not accept any liability in respect of any loss you may suffer as a result of your reliance thereon. The processes, policies and business practices described may change from time to time and Old Mutual Investment Group specifically excludes any obligation to communicate such changes to the recipient of this document. This document is not an advertisement and it is not intended for general public distribution. The information herein does not constitute an offer to sell or a solicitation of an offer to buy any securities.
Old Mutual Investment Group has comprehensive crime and professional indemnity insurance. For more detail, as well as for information on how to contact us and on how to access information, please visit www.oldmutualinvest.com
INVESTMENT GROUP 46