African Alliance, the asset management company, has been granted the status of stock-broking, pushing the number of brokerage companies in the country to four, sources said on Friday.
“We were approved as a broker a while back and we expect to start trading by next week. Presently, we are sorting some back office issues and we should be in business before the end of next week,” a source at African Alliance said.
African Alliance is one of the first companies to be certified as an international financial service outfit by the Botswana IFSC and was one of the leading companies to manage the Botswana public officer funds until its relation soured some two years ago.
African Alliance is a fund management firm with 18 percent stake owned by Louis Nchindo and a group of other Batswana while the rest is held by South African-based Tony de Castro’s family.
When African Alliance was notified of the termination of the contract without prior notice, the company had assets under its management to the tune of over P 6.5 billion.
The bulk of the assetsÔÇö totaling 92 percentÔÇö belonged to BPOPF, a mandate which it had since the inception of the scheme in 2001.
According to Alexander Forbes Botswana, the BPOPF fund administrators, African Alliance was the second best performing assets management firm in the country.
For the 12 months to end of December 31, 2006 its return on investment stood at 34.85 percent coming closer to Investec Assets Management at 35.7 percent and Fleming Assets Management at 37.8 percent on listed companies. And on average over the last three years its return on investment stood at 24.46 percent, according to Alexander Forbes.
Alexander Forbes further pointed out in the footnotes that African Alliance’s figures could have been much better if it had received contributions for December 2004 and January 2007. Further, its investment into Mascom was not factored because the company is not listed, but, sources close to Mascom said the cellphone network could be worth as much as P 3 billion.
BPOPF is the largest fund outside government and the central bank and is also the fastest growing in the country. The fund constitutes 80 percent of the P37 billion of the pension funds in the country.
Further, African Alliance is a well-diversified company with unit trust outfit and, until recently, it has had a private equity fund.