Futuregrowth Looking Beyond Traditional Assets
South African investors are increasingly looking for more rewarding opportunities, pushing asset managers to explore new territories, including alternative investments locally and expanded portfolios globally. This shift reflects a growing demand for strategies that can deliver higher returns in a dynamic economic environment.
A Move into New Ventures
Leading asset managers are responding to this call. Futuregrowth Asset Management a member of Old Mutual Investment group, for example, is now venturing into venture capital. This move into alternative investments signals a significant trend. It’s not about abandoning traditional fixed-income strengths but rather expanding to meet the clear demand from investors for more innovative and potentially more lucrative opportunities within the local market. As Futuregrowth’s new CEO, Kabelo Nogantshi, indicated, this expansion reflects the need to grow into areas that investors are actively demanding.
Going Global: A Bigger Playground
The appetite for growth isn’t just local. There is a strong push towards global markets, largely driven by the 2022 changes to Regulation 28 of the Pension Funds Act, which increased the offshore investment allowance for pension funds to 45%. This regulatory change has unlocked new possibilities for diversification and access to hard-currency assets.
South African investors now expect their domestic asset managers to offer global products that can stand shoulder-to-shoulder with international competitors. This demand is pushing local firms to build a track record in global portfolios, providing South Africans with a gateway to international markets without having to look abroad.
In essence, the message from investors is clear: they are no longer content to stand still. They are seeking growth, diversification, and more rewarding returns, both at home and across the globe.
