About Us

Unity Profile

Who Is Unity?

Unity Incorporation: The Union-Formed Investment Company With a Bias Towards Socially Responsible Investments

In the late 1980s, discussions within the trade union movement in South Africa intensified around the way in which retirement funds (pension and provident funds) were invested. It was observed that pension funds loaned money for the development of infrastructure such as residential and commercial buildings, shopping malls, office blocks, and others. And yet, these infrastructure investments did not directly benefit pension fund members whose contributions made them possible.

In addition, there was no clear policy which guided pension funds on how to invest members’ funds. Investment decisions were, by-and-large, at the sole discretion of the principal officer and the role of pension fund trustees was non-existent at the time.

The Formation of Unity Incorporation

Against this background and after much deliberation, in 1992 the trade union movement, represented by six trade unions from both COSATU (Congress of South African Trade Unions) and NACTU (National Council of Trade Unions), South Africa’s largest trade union federations, formed an investment company, Unity Incorporation, to ensure that their members had a say in the way their money was being invested.

These trade unions are:

  • BCAWU - Building, Construction and Allied Workers Union
  • CEPPWAWU - Chemical Engineering, Paper Printing, Wood and Allied Workers Union
  • NUM - National Union of Mineworkers
  • SACCAWU - South African Commercial, Catering and Allied Workers Union
  • SACWU - South African Chemical Workers Union
  • SATAWU - South African Transport and Allied Workers Union

In addition, with the establishment of Unity Incorporation, pension fund members could now play an active role in influencing transformation within South Africa’s major corporations and the broader economy.

Since 1992 Unity Incorporation has been, and continues to be, an active advocate of this approach to SRI by employing the three steps below:

1)      Social Research on ESG factors

We conduct active, extensive research on selected listed companies using strict SRI criteria that focuses on Environmental, Sustainability and Governance (ESG) issues. Listed companies are researched and measured on how far they are progressing in addressing ESG issues. During this process, both employees (union members) and company management are involved to ensure objectivity. Unity Incorporation ensures that SRI principles are incorporated in the investment decision-making processes of the funds they jointly own, - the Community Growth range of funds (CGF).

2)      Trustee Training

Changes in retirement fund legislation and practices that have taken place over the last few years have highlighted the important role and obligation of retirement fund trustees - hence the critical importance of trustee training. Trustees are now more than ever required to be knowledgeable so that they are in a position to act in the best interests of members. As one of its social responsibility initiatives, Unity Incorporation has, over the past years, been providing training to trustees on the latest regulatory matters, fiduciary duties and investment trends and principles. The training is partially done in-house and also outsourced to external service providers whose courses are accredited by the Insurance SETA.

3)      Engagement On Social Issues

Companies within CGF’s universe of shares are constantly engaged on social issues such as job creation, skills development, empowerment, corporate governance and others in order to monitor and contribute towards their progress in these areas.