Investment Strategy & Philosophy

Overview

Thebe Foundation Trust Investments (TFTI) is a wholly owned subsidiary of the Thebe Foundation Trust. It was established in 2017 as a private company with its own governance structure i.e. Board of Directors supported by expert consultants.

Investment Mandate

Is to ensure the sustainability of the Thebe Foundation Trust by ensuring consistent dividend flow to the Thebe Foundation Trust on an annual basis so that the Thebe Foundation Trust can continue with its developmental mandate of building communities. In addition to this, TFTI provides commercial support to the Thebe Foundation Trust as it relates to projects that have a commercial element. In this regard, we leverage off our long standing and strong relationship with Thebe Investment Corporation for systems and procedures in assessing all potential investments i.e. investment processes.

Investment Criteria

An investment must demonstrate a strong cash generating ability (dividend yield / cash return yield of 6% or more in the short to medium term)
An investment must present a strong long-term growth prospect (compound annual growth on invested capital of [15%] or more)
An investment must indicate a combination of cash generating ability and strong long-term growth potential.

Investment Funding

No investment funding or cash calls are expected from the shareholder i.e. Thebe Foundation Trust because the Thebe Foundation’s primary objective is to use its funds and/ or reserves for its developmental mandate.

Funding for an existing business: the investment must be self-funded and able to generate enough cash to provide returns to shareholders; and
Funding for a start-up: the investment must demonstrate the ability to reach self-funding and cash return to shareholders within a reasonable amount of time with funding ring-fenced.

Excluded Industries

The below is a list of industries that TFTI will not consider for investments:

Production or activities involving harmful or exploitative forms of forced labor or harmful child labor;
Production of or trade in any product or activity deemed illegal under host country laws or regulations or international conventions and agreements;
Production of or trade in weapons and munitions;
Trade in wildlife or wildlife products regulated under CITES; Gambling;
Production of alcohol and tobacco; and
Production or use of or trade in hazardous materials such as radioactive materials, unbounded asbestos fibers, products containing PCBs and chemicals subject to international phase-outs or bans.

This list will be reviewed and updated periodically.