According to an article published by Bloomberg, Old Mutual’s Futuregrowth will increase black shareholding from the current 28%. Ultimately, this will boost the proportion of the R185bn fund manager owned by black South Africans.
“We will also be taking pro-active steps to bring Futuregrowth’s black shareholding up from the current 28%,” Andrew Canter, the chief investment officer of the Cape Town-based company, said in a video giving his outlook for 2020.
Futuregrowth has been a leader in transformational and developmental investments for over 20 years via our range of development funds which make a real difference to people’s lives in South Africa, while delivering sound investment returns.
Since the end of apartheid in 1994 South Africa’s government has passed legislation and worked with companies to boost black involvement in the economy to make up for discrimination during whites-only rule. Still, the country remains one of the most unequal on earth and its economy is dominated by the white minority.
“It is a strategic national imperative, a strategic industry imperative, a client concern, and thus a business concern and imperative,” Canter said in response “It’s not a big-bang, as much as a journey.”
Both the Management and Black Management Trusts are vehicles that house the Futuregrowth shares set aside for senior staff. Up to 20% of the shares are held by staff via a staff incentive scheme consisting of Trusts.
