Barclays Bank of Botswana, the largest commercial bank in the country, and Stanbic Botswana last week snatched the biggest custodial services mandates relating to the Botswana Public Officers Pension Funds (BPOPF).
Barclays, which has been voted the best custodial manager in Africa for the past three years in a row, won the tender to manage assets worth P 12 billion.
Barclays, through its market savvy and tiny staff of six will manage assets of Investec Botswana and Fleming Asset Management which are each valued at P 6 billion.
“The contract is for two years and it has been awarded to the two banks,” BPOPF’s Chief Executive Officer, Ephraim Letebele said.
“It should be noted that a custodian is an entity responsible for holding the pension fund assets and ensuring for their safekeeping and it is in this regard that these agreements are aimed at Stanbic Bank Botswana and Barclays Botswana to provide the custodial services entrusted to them by BPOPF,” chairman of BPOPF board, Nelson Mokgethi said.
However, Stanbic will manage assets which are at African Alliance Botswana and Botswana Insurance Fund Management (Bifm). The total assets value is also around P 12 billion.
Barclays Botswana maintains a small staff and its custody services are wired to the world’s leading markets. The Botswana office constantly gets back up support in terms of research from South Africa and channels its funds through five offices across Africa. Regarding overseas markets, it relies on its Mauritius hub for investments, clearance certificates and reporting back to its clients.
“We have a very strong network across the world. And we can quickly implement the instructions which we are given by our clients at anytime. This includes voting by proxy for our clients even in company meetings that take place overseas. That saves our clients time and costs,” head of custodial services at Barclays Botswana, Botlale Segolodi, told Botswana Stock Exchange’s Investors Forum, a day after they were awarded the tender. Stanbic will use its footprint that spreads over 17 countries in Africa and its presence in Asia, Europe and North America.