Allan Gray Limited this week announced that its Botswana subsidiary, Allan Gray Botswana, has turned five years old.
Founded in 2004, Allan Gray Botswana is an independent investment management company that shares the investment philosophy and purpose of the broader Allan Gray group.
Since commencement of operations, the firm has focused on servicing government, parastatal and corporate retirement funds. It is now exploring growth initiatives within the retail space.
According to Allan Gray Chief Operating Officer, Rob Dower, Allan Gray Botswana has enjoyed substantial growth over the past five years, and now has P3.2 billion (R 3.7 billion) assets under management.
“We’re delighted with the progress Allan Gray Botswana has made in serving the Botswana institutional market and look forward to continued success over time,” says Dower.
Allan Gray Botswana Managing Director, Tapologo Motshubi, says the firm focuses on helping its clients build wealth over the long term. Since inception, its flagship Global Balanced mandate has delivered an annualised return of 18.5%, comfortably outperforming its benchmark which returned 14.8%.
Its Global Stable mandate has returned 18.3% against a benchmark return of 15.3%, and its Botswana Only mandate has achieved a highly pleasing 22% return, significantly in excess of its benchmark which returned 16.5%. The firm also offers a Global Only mandate through Allan Gray’s global asset management partner Orbis.
Portfolio and benchmark performance at 30 September 2009
3 Months 6 Months 1 Year Since inception (annualised)
Global Balanced 5.3% 12.5% 11.7% 18.5%
Benchmark* 9.6% 11.0% -0.9% 14.8%
Global Stable 2.6% 6.8% 10.2% 18.2%
Benchmark** 8.1% 8.0% 1.8% 15.3%
Botswana Only 7.3% 8.8% 4.3% 22.0%
Benchmark*** 9.1% 9.4% -0.5% 16.5%
*10% FABI, 20% DCI, 10% BOBCs, 40% FTSE World Index, 20% JP Morgan Global Government Bond Index
**15% FABI, 20% DCI, 15% BOBCs, 25% FTSE World Index, 25% JP Morgan Global Government Bond Index
***40% FABI, 50% DCI, 10% BOBCs
Allan Gray Botswana also aims to contribute to the development of investment skills, financial markets and the investment management industry in Botswana. Motshubi’s own career is an example ÔÇô when the firm first opened its doors, he was appointed as an analyst. Then, in February 2007, he was appointed as managing director. The company employs five people, all of whom are Botswana nationals, and the team is expected to grow further over time.