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Our strategy


Vision

RMH’s aim is to be a value-adding long-term partner, enabling leadership and innovation in banking and financial services. Its founding members are highly influential in the industry and remain committed to achieving its objectives.

RMH strives to achieve this vision by pursuing opportunities in the changing financial services landscape which meet its stringent criteria and strong values.




Values

We believe that a values-driven culture is integral to RMH’s success and long-term sustainability. We are therefore committed to ensuring that the principles of corporate governance and ethical business practice are applied consistently in our interactions with all stakeholders and in a way that upholds our values, which have been formed over decades and should stand us in good stead for the future. These values are as follows:

  • we embrace our owner-manager culture, which has been imprinted in our investment;
  • people are our most important resource;
  • we strive to create sustainable earnings for our shareholders;
  • we uphold the highest levels of business ethics and personal integrity;
  • we respect traditional values;
  • we motivate to innovate; and
  • we understand our social responsibility as a member of the greater community we operate in.


Strategic Initiatives

Our objective is to create value for our shareholders over the long term, through both an attractive dividend yield and an increase in intrinsicvalue. To achieve this, we have set three strategic priorities:

Portfolio optimisation:
Act as a responsible custodian for the group’s investment.

Maximise structural benefits in the light of:

  • empowerment credentials;
  • strategic partnerships through substantial shareholders;
  • a long-term focus;
  • an optimal capital structure; and
  • stability.

Growth:
Actively seeking opportunities to partner with FirstRand.

Portfolio Optimisation Structural Benefits Growth
Being an active and responsible strategic shareholder
We are a holding company with a long-term investment horizon. Investments are therefore held for as long as needed to optimise their value. Based on our track record, we believe that increasing the value and yield of our participation requires close collaboration with the FirstRand management team in the context of its board of directors. In FirstRand we hold a position and an influence sufficient to fulfil our role of strategic shareholder. Our strategy is to position ourselves amid the key shareholders, have an engaging and long-term approach and play an active role within the governance bodies, particularly when it comes to strategic decision-making by our investment. We are sensitive to the environmental and social impact of FirstRand and encourage the use of sustainable development best practices.
Maintaining a solid and flexible financial structure
RMH provides its shareholders and FirstRand with certain structural benefits such as empowerment credentials, a long-term focus, financial flexibility and a stable shareholder of substance.

Our objective is to maintain a sound financial structure, with a solid liquidity profile, ensuring we have readily available resources, and a limited net indebtedness in comparison to the portfolio value. This policy gives us the flexibility required to quickly seize investment opportunities.

Value creation through continuous and sustainable growth of our intrinsic value and the paid dividends
Our objective is to continue to deliver share price performance above market average, while ensuring regular dividend growth.
Further diversifying the portfolio in order to maintain a balance between growth and yield
RMH will continue to focus on its investment in FirstRand, which it believes gives it diversified and growing exposure to the South African banking and general financial services industries.

The intention is not to activate the portfolio on a general basis; the board will however continue to evaluate select and appropriate investment opportunities which may include further exposure to FirstRand.