Making a meaningful contribution


Peregrine’s commitment to transformation is evident from the consolidated Broad-Based Black Economic Empowerment (B-BBEE) scorecard and recognition of Peregrine SA Holdings, the entity which is the holding company of the Group’s South African operating entities, as a Level 4 contributing enterprise (2016: Level 4 contributing enterprise). The verification audit for the year ended 31 March 2016, which reflected an overall score of 69.03 (2016: 70.24), assessed the achievement by Peregrine SA Holdings, Peregrine Equities and Citadel of BEE targets as set out in the Financial Services Charter and is valid until 7 March 2018. Click here for the B-BBEE certificate for Peregrine SA Holdings.

In order to comply with the requirements of the B-BBEE Act, the B-BBEE Amendment Act and the subsequent B-BBEE Regulations, in terms of which all JSE listed companies are required to submit an annual compliance report to the B-BBEE Commission, Peregrine Holdings has undertaken a separate verification audit. The annual compliance report for the year ended 31 March 2017 is based on Peregrine Holdings’ B-BBEE certificate, which takes into account that Peregrine Holdings has no employees and is merely a holding company, including the holding company of offshore entities to which B-BBEE is not applicable.  Click here for the annual compliance report and B-BBEE certificate.

Please note: The information and statistics in this section of the report reflect Peregrine Group’s South African subsidiaries and, unless otherwise specified, is not inclusive of joint ventures or associates.

Peregrine is committed to transformation as a critical business practice, not only for the Group’s sustainability, but also as a means to make a meaningful contribution in the larger South African society in which a large part of its businesses operate. Peregrine further acknowledges the reputational and operational risk inherent in failing to meet its B-BBEE objectives. To this end Peregrine has an established Group Transformation Forum (GTF), which meets at least three times a year.

The GTF comprises member representation of the major subsidiaries (by headcount) within Peregrine (and, since 1 April 2016, Java Capital) and functions as a discussion group and an advisory body to the Board. The relevance and importance of the GTF is amplified by the fact that it is a specific discussion point for all subsidiaries at a Board level, and jointly controlled entities. Members of the GTF include Executive Directors (including the Chief Executive Officer), the Citadel Human Capital Director, a representative of Nala and representatives from other companies within the Group. The key objective is to drive and address all elements of the B-BBEE scorecard in the spirit of authentic transformation. The Board assumes responsibility for the dialogue on transformation and diversity between employees and management. The full scope of the GTF’s responsibilities includes:

  • Employment Equity;
  • Skills Development;
  • Preferential Procurement;
  • Enterprise Development; and‎
  • ‎Socio-economic Development (SED).

The Group SED Forum was established in the 2016 financial year, replacing the sustainability Forum. The Forum meets quarterly or more frequently depending on the need for discussion and allocation of funds. The SED Forum specifically focuses on transformation on the level of economic empowerment and SED.

In accordance with the requirements of the Employment Equity Act (and in addition to the GTF), the Group is in the process of establishing Employment Equity Committees to formulate and implement Employment Equity plans and compliance with the requirements of the Employment Equity Act.

To enable insight into the challenges facing the financial services sector at large, as well as strategic priorities, participation in the Association for Saving and Investments South Africa’s (ASISA) Transformation and Skills Development Board Committee has been identified as a priority, at which the Citadel Director of Human Capital, Marina Knox, represents the Peregrine Group. Peregrine is further represented on the Transformation and Education working group of ASISA.

Transformation is not only a key driver and focus area for management at a Group level, but also for management within some of the local subsidiaries. Monitoring takes place as part of Board and Executive meetings and the scorecards provide specific measurable tools as well as focus areas.


In line with the Group’s sincere attempt to progress transformation, Nala was established to be a sustainable Broad- Based Black Investment company. Nala has a 20% stake in Peregrine SA Holdings, which shareholding enables Nala to participate in the South African operations of the Group. Through Nala’s shareholding and the see-through shareholding held by Peregrine Holdings, Peregrine SA Holdings has a 25.26% Black Ownership with 8% Black Female Ownership.

The Peregrine Educational Trust (35%), the Peregrine Community Development Trust (15%) and the Employee Portfolio Investment Trust (20%) cumulatively own 70% of Nala, with the remaining 30% of Nala being owned by Peregrine Holdings Limited.

The three trusts were established to benefit Peregrine’s black staff, to aid in community development and to promote the advancement of disadvantaged individuals through education. In line with this intention, during June 2017, Nala declared its first dividend to its shareholders and a distribution was made to the beneficiaries (being Black staff) of the Employee Portfolio Investment Trust.

In addition, Peregrine Equities holds a significant minority stake in Legae Securities, the oldest empowerment stock broker in South Africa.

Board representation

At year-end the Peregrine Board included one black male independent Non-Executive Director, Stefaan Sithole, equating to an 11% black representation. Stefaan is also a member of the Audit Committee and Chairman of the Social and Ethics Committee.

Employment equity

A formal Employment Equity Policy is in place for all South African employees and potential candidates. Of the Group’s 521 (543 in 2016) South African employees, 39% (37% in 2016) are black. The Employment Equity Policy stipulates a specific focus on recruiting black candidates, and to this end, within Citadel, the first two month period in the recruitment process is dedicated to the exclusive fulfilment of employment equity positions. This principle will remain our core focus year on year. The table below highlights the percentage of employees that are black by employment category:

  2017 2016
Category level Number of employees* %** Number of employees* %**
Top management 29 7 26 8
Senior management 25 20 23 22
Professionally qualified 156 14 179 13
Skilled 275 52 278 49
Semi-skilled 16 94 19 89
Unskilled 16 100 13 100
Disabled 4 25 5 40
Total 521 39 543 37

*Total number of employees per category
**Percentage of workforce which is black

Comparing percentages year on year, incremental improvements in skilled and semi-skilled levels have been achieved, with marginal reductions at top management and senior management levels, which will be a specific focus area for the year ahead. It is important to note that the percentage changes in the Group’s employment equity numbers were affected by a decrease in the number of employees within the local subsidiaries, with a contributing factor to this decrease being the focus on systems development and improved operational efficiencies within Citadel, the subsidiary employing the largest workforce within the Group.

Management within all subsidiaries are cognisant of the drive to improve equity representation within their respective businesses.

Although staff numbers may fluctuate from year to year, the racial and gender representation has remained relatively constant, reflecting the Group’s respect for diversity in race and gender. Although marginal, representation of black employees has increased which is indicative of transformation as a key driver and business imperative. With high retention and tenure of employees creating limited opportunities, this does remain a challenge.

Employee headcount by race and gender (%)
  2017 2016
Black 39 37
White 61 63
Male 37 38
Female 63 62

While Peregrine encourages freedom of association to its employees, at this point, no employees have undertaken to join a union.

Peregrine further embraces equal opportunity for all employees. Awareness of industry trends and internal policies are continuously reviewed from a legal compliance perspective, to ensure applicability on a national level.

Citadel Investment Services, a wholly owned subsidiary of Peregrine Group has established an Employment Equity Forum (EEF) with representation from all occupational categories, designated groups as well as non-designated groups. Representation will be determined by individual voting. The EEF will serve as a consultative forum and have direct engagement with all employees to enable in-depth insight and feedback on employee perceptions and needs. Other entities within the Group have also identified the need to established EEFs and the process of doing so is currently underway.

Skills development and training

Employee development is aligned to business priorities and available opportunities, with the aim of enhancing employees’ competence and knowledge in their field of expertise. All employees are given the opportunity to be exposed to training and development. During the year, R1.9 million (R2.5 million in 2015) was committed to formal training. The decrease is mainly attributable to the extensive training which took place in 2016 on the integration of Citadel Financial Planning, previously, Consolidated Financial Planning, into the Citadel Group. Over 70 individuals from Citadel Financial Planning and other business units participated in centrally held training and induction programs.

The Group has an inclusive culture where all employees readily share information and take ownership of developing and skills transfer towards junior or new employees. Focus is placed on internal training and skills transfer to ensure all employees are competent, trained and equipped to function optimally in a highly complex, regulated and technical environment. Costs associated with informal training and internal mentorship programs are not included in the direct spend on training, while travel costs, due to the national footprint and centralised training, are included.

Regulatory and compliance elements remain a specific focus to ensure the highest level of compliance and professionalism. The needs of our clients and responsibility to provide professional and optimal service are key drivers of the training programs.

Targets for development remains a key deliverable of management, as determined through individual assessments and employee engagements during the year. Specific training needs of all employees is the responsibility of the department heads. Self-insight, personal and team development remains a focus within the Group, through programs such as holistic thinking style analysis and personality profiling.

Preferential procurement

The Group is committed to developing committed and supportive relationships with B-BBEE service providers. As a result, Peregrine received 100% recognition as a preferential provider. The Group further received the status of Value-adding supplier as well as Enterprise Development Beneficiary which is consistent with the prior year.

The Peregrine Group will continue to focus on procurement as a strategic imperative to address a broader base of economic interest and growth for black owned companies.

Enterprise development (ED)

Certain subsidiaries within the Peregrine Group have Enterprise Development agreements in place with black-owned companies as set out below. A total of R14.77million was spent with ED partners during the year (2016: R10.8 million). The aim of ED agreements is to align internal processes such as recruiting and event co-ordination through empowering companies with black ownership. Peregrine continues to focus on developing procurement partners through such agreements, as well as supporting businesses through procurement initiatives. Enterprise development continues to receive focus, with emphasis on building businesses through direct enterprise development.

Various entities benefited from enterprise development partnerships. Longstanding relationships such as that between Legae and Peregrine Securities reflect long-term commitment and beneficial cooperative engagement.

Details of the ED spend for 2017 is set out below:

Company Rand B-BBEE Level
Legae Securities 9 000 000 2
Vunani Fund Managers 2 880 607 1
Hi-Side Events 1 464 090 4
Finvision Stock Lending Solutions 1 200 000 1
DAV Professional Placement Group 222 517 2
Total 14 767 213  
Socio-economic development (SED)

Peregrine is committed to advancing local communities through socio-economic development and empowerment programs, with a long-term and sustainable outlook. The Group has a long-term strategy to empower communities and employees through its empowerment vehicle, Nala, and the three underlying trusts, the Peregrine Educational Trust, the Peregrine Community Development Trust and the Employee Portfolio Investment Trust. The Group is proud to report that the beneficiaries of the Employee Portfolio Investment Trust received their first distribution by virtue of the maiden dividend declared by Nala to its shareholders during June 2017.

In addition to this, the Citadel Philanthropy Fund (CPF), has been created as a platform for donor advised funding of community projects. The CPF creates a platform and opportunity for companies, as well as individuals to allocate SED spend and to contribute to projects that have met all the regulatory and compliance criteria. The CPF encapsulates the Group’s strategic thinking around SED from a broad based and sustainable perspective, utilising resources and skills within the Group to create opportunities for the Group’s client community.

From a beneficiaries’ perspective, the CPF enables broader participation and exposure to a variety of projects. The CPF further provides exposure of projects to a wider investment pool and is not limited to the Peregrine Group.

On an annual basis the Group aspires to dedicate 1% of its South African subsidiaries’ net profit after tax to initiatives that benefit societies in which most of its employees reside and operate in. To date the Group’s initiatives have focused on education centered projects. Beneficiaries and allocation to such beneficiaries are decided upon by the Group SED Forum which comprises representation from Peregrine SA Holdings, major subsidiaries and some associate companies. The SED Forum has developed a matrix to enable a fair selection of projects and the establishment of this Forum has further brought collaboration and extended engagement enabling, with passion and commitment, the opportunity to share a vision and to make a difference. To this end the Group allocated funds to various initiatives, of which the major beneficiaries are as detailed below:

Sumbandila Scholarship Trust:

In an effort to extend the Trust’s reach, Sumbandila Scholarship Trust partnered with the Peregrine Group, The DG Murray Trust (DGMT) and Rethink Education to pilot a mobile technology, academic support program with 916 rural learners in Limpopo, upgrading Maths, Science and Reading skills as well as empowering teachers by improving subject knowledge, teaching strategies and Information Communication Technology (ICT) skills. This revolutionary means of learning allows students to continue working on the educational content in their own time at their own pace on their mobile phones. In addition to this the Trust has put in place support structures to assist students through bi-monthly Saturday school and comprehensive holiday school so that provision is made for students that may require further assistance.

Principal Academy Trust (PAT)

The PAT aims to turn public schools serving disadvantaged communities in the Western Cape into centres of excellence by focusing on improving school leadership and teaching quality. The funds provided by the Group went towards the funding of a mentorship program between a successful former principal and current principal at the Bridgeville Primary in the Western Cape, which is designed to develop and empower the latter. The mentorship program lasts for a minimum of 3 years, including the Principal attending UCT Graduate School of Business’s custom designed Management and Development Programme for School Principals, relevant workshops, and working with the school’s management as well as actual mentorship between the successful former principal and current principal.


Many students enter the higher education system with little or no source of funding for their studies. Most qualify on academic grounds but cannot afford to study without financial support, this saw the rise of the Fees Must Fall Movement among students across the country in 2015 and 2016. In light of this the Group awarded full bursaries, catering for tuition, accommodation, food and learning material for the entire 2017 academic year, to five university students.

Women of The World (WOW)

The Group provided funding for implementing an intervention programme in Mathematics, Science, English and Accountancy at Kgalatlowe High School in rural North West Province that includes monitoring and assessments of each child in Grade 8 and 9. The rationale behind the proposed intervention programme being to improve the overall quality of education at Kgalatlowe High school and therefore eliminate the need to send students in this region outside the province on study bursaries.

Financial Services Consumer Education Foundation (FSCEF)

FSCEF is an independent trust and a public benefit organisation, established by the Financial Services Board (“FSB”) with the sole purpose of promoting and funding financial education programs. The envisioned outcome of the program is improved consumer financial literacy in order to enable consumers to make more informed decisions. The contribution made by the Group was allocated to workshops for participants in the Expanded Public Works Programme. This program runs in four provinces and encompasses 200 workshops covering financial literacy topics such as, “How to manage your money”, “Retirement funds”, The rights and responsibilities of consumers when buying financial products and services” and “Recourse Mechanism”.

Reach Out

Reach out projects provide a platform for staff involvement in community outreach. A number of projects, throughout the country, benefitted from these staff led initiatives, most of which had an education focus. Some of the beneficiaries included, the Bona Lesedi High School in Mamelodi, Pretoria through the Partners for Possibilities program, Philile Foundation’s Diepsloot Crèche that received a new library, Rebonwe Primary School, in Ivory Park, Midrand through the ORT SA ‘Be Responsible’ campaign, Nazareth House and Haven Night Shelter in Cape Town that received blankets and food respectively, and Sgodipola High School in Cosmo City Johannesburg that received two renovated classrooms as part of SAME Foundation 67 Minutes for Mandela initiative in 2016.