A singular mission
Formed in 2011, SIOC-CDT Investment holdings (InvestCo) manages SIOC-CDT’s assets which are available for investment by the trustees. Our mission is to help in sustaining the Trust’s public benefit activities beyond the life of the Kumba Iron Ore Mines.
SIOC-CDT Investment holdings (InvestCo) was established in 2011, with the aim of securing long-term investments to sustain the Public Benefit Activities of the Trust. It is a wholly-owned subsidiary of the Trust. From inception, InvestCo has invested over R750 million in various industries. These include both listed and unlisted businesses spanning construction, mining, aviation and hospitality sectors.
Mr Karabo Dick is a seasoned investment professional with a keen interest in sustainable finance. He is responsible for long-term, value-creation for SIOC-CDT’s investment portfolio. He developed his love for investing with stints at Pricewaterhouse Coopers (PwC) Transaction Services and Industrial Development Corporation as a dealmaker. He also has extensive experience in renewable energy financing transactions and corporate financing. Mr Dick has a passion for innovative, strategic asset allocation strategies. He is a qualified Chartered Accountant and holds a Masters in Development Finance from Stellenbosch University.
Mr Ayran Oosthuizen has a breadth of experience dealing with Valuations and Transactions in his time in Ernst & Young (EY) Strategy and Transactions division. He has been involved in numerous engagements for AngloGold, Harmony, Sibanye, Impala, AngloPlats, The PIC, Transnet and Liberty. He is a Chartered Accountant and also has a Diploma in Management Accounting from CIMA. He is passionate about innovation, strategy and building a sustainable portfolio for our beneficiary communities.
Investment Review Committee
Mooketsi Motsisi (Chairman)
Dirk van Staden
The vision of the Trust is to help its beneficiary communities to derive a long-term benefit from mining operations so that when the mines close, they are in a much stronger position than before and are more likely to be able to thrive and sustain themselves. In accordance with the Trust Deed, the Trust has an obligation to spend or distribute 70% of Trust Income (mostly comprising of dividends received from SIOC-CDT) in Public Benefit Activities and operational/administrative expenditure. This spending policy was approved as such by the South African Revenue Services in approving the Trust’s status as a Public Benefit Organisation.
The Trustees believe that in order to achieve this vision, the Trust itself needs to be sustainable beyond the Life of the Mine. It requires a sustainable pattern of spending, whereby the current needs of the community are not sacrificed in the interests of future generations, nor are future needs sacrificed to those of the present. In order to achieve the desired level of spending while preserving and enhancing the Trust’s purchasing power over time, the Trust would need to invest its excess resources to generate a return that is greater than its spending rate.
For this purpose, the Trust can invest up to 30% of Trust Income on a long-term basis through InvestCo. The returns of this investment(s) would be contributed back to the Trust to continue its mission to improve the conditions of its beneficiary communities beyond the Life of the Mine.
2. Investment Objectives and approach
InvestCo’s new long-term return target is to achieve above inflation returns over a rolling 10-year period. The company positions itself as an institutional investor looking to invest in active fund managers using modern portfolio theory of a strategic asset allocation methodology. These are private equity, bonds, listed equity and global equities. We ensure that all managers appointed adhere to sound environmental, social and governance (ESG) principles integrated into their investment process.
3. Investment criteria
InvestCo seeks new investments with the main principles of risk diversification as the main driver. The company is cognisant that the capital markets are volatile and will therefore aim to have a diversified portfolio of investments. By allocating InvestCo Assets to asset classes whose returns are not highly correlated over time, InvestCo aims to mitigate some of the volatility inherent in equities and thereby provide greater stability in spending distributions than might be possible with a more concentrated portfolio. To achieve a prudent level of portfolio diversification, InvestCo employs a strategic assets allocation between private equity, bonds, listed equity and global equities.
4. Investment portfolio
In line with the new investment approach, InvestCo has commenced partnerships with some well-known fund managers in the country, including Futuregrowth Asset Management (2019) and Prudential Investment Managers (2019).
InvestCo has historically invested in various direct investments in the following entities over the years:
|1||SA Airlink||Aviation company||32.51%|
|2||Urban Hotel Kathu||A 79-key hotel in Kathu, Northern Cape||100%|
|3||SIOC-CDT Properties Company||A 100% subsidiary office property development in Kathu, Northern Cape||100%|
|4||Kathu Solar Park||A 100MW CSP plant in Kathu, Northern Cape||12.5%|
These investments were invested prior to the adoption of the new investment strategy. The company continues to monitor and extract value from these assets on a continuous basis.
Cnr Hendrick van Eck & Ian Flemming
012 679 2047
There are currently no vacancies available
SIOC-CDT's primary goal is to implement sustainable socio-economic initiatives through partnering with key stakeholders to ensure that beneficiary communities have sustainable income and are empowered to thrive beyond the lifespan of the mine.