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 The Sharenet Daily 
Tuesday, 29 July 2014 - 20:00
Top News
SA Business
Company News
Company Results
World Markets (Spot Prices)
JSE Today
JSE Trading Statistics
Major Moves
Index Summary
Latest Consensus Changes / Results Expected
Recent Dividends / Ex Div
Upcoming AGMs
Stock Exchange News Service (SENS)

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Seed Weekly - Alexander Forbes returns to the JSE

Financial services company Alexander Forbes Group Holdings became the 11th company to list on the JSE this year when it returned to the main board on 24 July. After initially listing in 1996, the company was bought out by a private equity consortium led by Actis in 2007. When the private equity owners indicated their intention to exit the investment, shareholders voted in favour of re-listing the group and selling a 34% stake to Mercer Africa, a subsidiary of Forbes’ long-time strategic US partner Marsh & McLennan.

Company structure

Alexander Forbes offers a wide range of services across the financial services sector. The group’s core businesses comprise Alexander Forbes Financial Services (AFFS), which offers retirement fund administration, employee benefits, healthcare consulting and actuarial services, and Investment Solutions (IS), which offers investment administration and multi-management services.

The group’s product range is further diversified through Alexander Forbes Insurance, which offers motor, household and business insurance to the retail and institutional market.

Geographic diversification comes via AfriNet, which offers employee benefits, risk services and actuarial consulting in Botswana, Kenya, Namibia, Nigeria, Uganda and Zambia. Alexander Forbes International offers similar services to clients in the UK, Abu Dhabi, Belgium, Ireland, and the Netherlands.

Latest results

The company’s latest results, for the financial year ended 31 March 2014, must be read in the light of a recent balance sheet restructuring operation. In order to simplify its balance sheet and provide more flexibility, the African Risk Services business was sold to the Marsh group, Guardrisk was sold to MMI, and selected UK operations were also disposed of.

Post the restructure, and before the re-listing, the shareholding and capital structure were as below:

For FY14, the group reported an 18% increase in net revenue to R4.4bn, with operating expenses increasing by 19% to R 3.4bn. The resultant R 1bn profit from operations is a 12% improvement on FY13. Investment income increased dramatically from R 129m to R 233m, while finance costs remained flat at R 843m.

All divisions were able to increase net revenue and profits during the year, with profit from the international and African operations growing very strongly indeed.


Alexander Forbes believes that the group is now well positioned for growth after the completion of the restructure and the re-listing. Management believes that their key differentiators are a strong institutional integrity and capacity, a high performance accountability culture, focused investment in leadership and increased employee engagement.

The combination of AFFS and IS enables the group to offer a holistic service across the entire value chain, from administration and advice to managing underlying assets on a multi-manager basis. By aligning themselves with the global trend of integration and consolidation of service providers, the group hopes to grow its market share further.

As a first growth strategy, the group aims to use its well-established institutional client base to expand its footprint in the SA retail space. AfriNet is the focus of the group’s second growth strategy, in which AF will continue to establish the brand in sub-Saharan African countries while leveraging off their established SA skill set. The third and final growth strategy is an increased focus on the public sector in Africa, often the largest employer in a country and a key driver of future African growth.

Share Fundamentals

The share opened at R 8.10 on the first day of trading, 8% higher than the initial public offer price of R 7.50. The share added a further 12% since, closing at R 9.10 on 28 July. In statements to the media, the group mentioned that it may pay out as much as 67% of its earnings as dividends to shareholders.
Alexander Forbes is not held in the Seed Equity Fund or Seed Model Share Portfolio, but Seed will keep assessing the share in light of the results of the group’s growth strategies.

Kind Regards,

Cor van Deventer

021 914 4966

Tue, 29 Jul 2014
Top News
South Africa's rand fell to its lowest in a week against the dollar on Tuesday, with investors keen to minimise their risk exposure the day before a U.S. Federal Reserve statement.  Full story

Local markets  Full story
Israel knocked out Gaza's only power plant, flattened the home of its Islamist Hamas political leader and pounded dozens of other high-profile targets in the enclave on Tuesday, with no end in sight to more than three weeks of conflict.  Full story
Militant fighters overran a Libyan special forces base in the eastern city of Benghazi on Tuesday after a battle involving rockets and warplanes that killed at least 30 people.  Full story
Rebels in east Ukraine accused the Organization for Security and Cooperation in Europe on Tuesday of serving U.S. and Ukrainian interests and threatened to ban the security and rights group from the crash site of a Malaysian airliner.  Full story
Despite high unemployment, weak economic growth and complex labour laws, France is offering an unlikely glimmer of hope to beaten-down staff recruitment firms such. . .  Full story
European equities climbed on Tuesday, with strong earnings reports from companies such as engineer GKN and retailer Next outpacing the threat to the region's. . .  Full story
U.S. stocks were little changed on Tuesday after a rally in the telecommunications sector lost steam and a lower earnings forecast from UPS. . .  Full story
World share markets hovered just below all-time highs on Tuesday as investors drew encouragement from a rally in China, while Russian stocks enjoyed some. . .  Full story

Britain's top equity index edged up on Tuesday, lifted by gains at fashion chain Next and at car and plane parts maker GKN. . .  Full story
Gold turned lower on Tuesday as uncertainty before a Federal Reserve policy meeting and key U.S. data later this week pulled the metal. . .  Full story
U.S. stocks rose slightly at the open on Tuesday following better-than-expected results from companies such as Pfizer and Merck and ahead of data. . .  Full story
European shares steadied on Tuesday, with earnings reports from companies such as British engineer GKN offset by the threat to the region's economy. . .  Full story
SA Business
South African manufacturing workers started returning to work on Tuesday after accepting a wage deal from employers, ending a four-week strike. . .  Full story
South Africa on Tuesday raised its forecast of maize output for 2014 to 14.017 million tonnes from a prior estimate of. . .  Full story
South Africa's ruling African National Congress (ANC) would like a local company to buy mines being sold by Anglo American Platinum. . .  Full story
South Africa's unemployment rate increased to 25.5 percent of the labour force in the second quarter of 2014, from 25.2 percent. . .  Full story

Petra Diamonds Ltd said its second-largest shareholder sold more than two-thirds of its stake in the diamond miner through a placement. . .  Full story
The rouble dropped to its lowest in more than two months on Tuesday amid expectations Russia will soon be hit by more sanctions.. . .  Full story
South Africa's Treasury sold 2.35 billion rand ($222 million) in 2030, 2032 and 2044 paper on Tuesday. Yields were higher than. . .  Full story
South African metal workers started returning to work on Tuesday after accepting a wage deal from employers, ending a four-week strike. . .  Full story

Growth in credit demand from South Africa's private sector quickened to 8.69 percent year-on-year in June, from 8.34 percent in May, reserve bank data showed on Tuesday.. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0052242.12314.550.61%
JSE Top 4017:0047056.26317.560.68%
JSE Gold17:001529.42-5.63-0.37%
JSE Financial17:0038530.27228.880.60%
JSE Industrial17:0067440.14302.760.45%
JSE Indust 2517:0059601.87284.450.48%
JSE Resource17:0061274.03597.240.98%
DJ Futures18:4216935.0019.000.11%
DJ Ind19:5816998.9016.310.10%
SP 50019:581979.430.520.03%
FTSE 10017:356807.7519.680.29%
All Ords08:375580.6010.700.19%
NZSE 5007:485165.56-21.58-0.42%
NameTimeRPMove% Move
Gold $19:591298.91-4.73-0.36%
Gold R19:5913756.27-3.19-0.02%
Gold R/kg19:58442555-130-0.03%
Silver $19:5920.5490-.0180-0.09%
Platinum $19:591478.50-6.50-0.44%
Palladium $19:59876.80-1.20-0.14%
Brent Crude19:58107.29-.28-0.26%
Rand / Dollar19:5910.58940.03500.33%
Rand / Pound19:5517.93370.03930.22%
Rand / Euro19:5514.21610.03160.22%
Rand / NZD19:599.0077-0.0178-0.20%
Rand / AUD19:559.95190.02160.22%
Yen / Dollar19:59102.09700.24700.24%
Euro / Dollar19:590.74570.00150.20%
Dollar / Euro19:591.3411-0.0027-0.20%
Pound / Dollar19:550.58980.00120.20%

Click here for the Sharenet Spot Price page
The JSE Today

Trading Statistics
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 CULLINAN  220136.28.%1018915
2 ARCMITTAL  36341985.76.%501402
3 LITHA  200105.26.%156066
4 SABVEST-N  30001505.26.%800
5 DELTA  439194.52.%600
6 RCL  1626664.23.%103267
7 RARE  317123.93.%180
8 MRHLD  2520953.92.%947120
9 HUGE  14053.70.%22000
10 ZEDER  585203.54.%2913360
11 RBPLAT  74702533.51.%367005
12 SEARDEL  18563.35.%20000
13 PALLINGHT  419133.20.%73789
14 ASCENDIS  1495453.10.%47090
15 TRNSHEX  360102.86.%55178
16 CSG  18752.75.%274106
17 PAN-AF  26572.71.%5330630
18 INTUPROP  58531382.41.%1067388
19 OCEANA  87002002.35.%38048
20 MAZOR  22052.33.%3180

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Major Moves Down
SharenameSaleMove% MoveVolume
1 MASONITE  2800-400-12.50.%2605
2 POYNTING  300-22-6.83.%2250
3 OANDO  179-11-5.79.%1808
4 ALEXANDER  870-40-4.40.%2302207
5 DAWN  1060-41-3.72.%2361
6 SYCOM  2701-99-3.54.%4241
7 FAIRVEST  140-5-3.45.%75400
8 WESCOAL  163-6-3.33.%178266
9 EASTPLATS  965-31-3.11.%6105
10 CONDUIT  160-5-3.03.%9785
11 CLIENTELE  1650-50-2.94.%1630
12 SIBANYE  2599-76-2.84.%1824760
13 YORK  345-10-2.82.%2500
14 EQUITES  1040-30-2.80.%13519
15 MERAFE  141-4-2.76.%2019873
16 JASCO  108-3-2.70.%2000
17 ROLFES  370-10-2.63.%159529
18 ADVHLTH  210-5-2.33.%222110
19 DELTAINT  2150-50-2.27.%7959
20 MARSHALL  880-20-2.22.%40000

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New Highs
SharenameSaleHighMove% MoveVolume
1 ZEDER  585594203.54.%2913360
2 ASCENDIS  14951540453.10.%47090
3 INTUPROP  585358961382.41.%1067388
4 OASIS  15501550251.64.%1042
5 FONEWORX  25027041.63.%16891
6 MRPRICE  20600206972851.40.%781656
7 PIKWIK  26002800351.36.%82307
8 FIRSTRAND  44334459561.28.%6320537
9 NEDCOR  24537245403081.27.%454763
10 ANGLO  29556297413561.22.%2154453
11 PERGRIN  23062310261.14.%506319
12 BILLITON  37625377183600.97.%1301819
13 RMBH  57175771410.72.%722556
14 B-AFRICA  17230173751100.64.%586545
15 REMGRO  23777238851270.54.%408036
16 CAPPROP  1150116550.44.%2644190
17 A-V-I  63006355140.22.%287263
18 STANBANK  1493014990300.20.%1637950
19 TIGBRANDS  3147632000250.08.%310769
20 PICKNPAY  5982608220.03.%2042234

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New Lows
SharenameSaleLowMove% MoveVolume
1 ELLIES   258255-5-1.90.%1197523

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Index Summary
Index NameRPMove% Move
Top 4047,056.26317.560.68%
Mid Cap66,434.35132.090.20%
Small Cap54,513.42146.170.27%
Resource 2061,274.03597.240.98%
Industrial 2559,601.87284.450.48%
Financial 1514,868.65100.880.68%
Financial & Ind. 3063,661.49338.270.53%
All Share52,242.12314.550.61%
Oil & Gas 47,716.59535.771.14%
Mining 36,459.97315.760.87%
Gold Mining1,529.42-5.63-0.37%
Platinum Mining48.36.230.48%
GENERAL MINING10,752.32112.801.06%
Oil & Gas Producers 25,656.33288.081.14%
Basic Materials 32,127.21282.340.89%
Chemicals 24,858.25-14.40-0.06%
Forestry & Paper 33,517.94284.360.86%
Industrial Metals 20,862.42577.122.85%
Industrials 47,269.6024.550.05%
General Industrials 151.80-.25-0.16%
Consumer Goods 61,401.6454.630.09%
Automobiles & Parts 8,321.89-11.32-0.14%
Household Goods367.50-2-0.65%
Health Care 86,397.46-27.91-0.03%
Index NameRPMove% Move
Food Producers 80,408.10-18.02-0.02%
Personal Goods 1,033.522.900.28%
Consumer Services 12,714.55139.151.11%
General Retailers 68,849.55347.360.51%
Travel & Leisure 5,643.3720.240.36%
Media 290.344.771.67%
Support Services 2,789.8320.270.73%
Telecommunications 10,761.4889.710.84%
Financials 38,530.27228.880.60%
Banks 69,063.90500.620.73%
Non-life Insurance 50,789.19102.090.20%
Life Insurance 36,168.93222.660.62%
General Financial 3,859.0930.240.79%
Technology 46,235.85286.920.62%
SHARIAH TOP40 4,482.88400.90%
FTSE/JSE SHARIAH ALL4,599.97360.79%
COAL MINING18,436.742311.27%
FTSE JSE Fledgling 6,840.59-4-0.05%
FTSE/JSE Alt X 1,224.79-2-0.16%
RESOURCE 33,381.363050.92%
DIVIDEND PLUS230.9520.66%
FTSE/JSE RAFI 4010,389.06560.54%
Capped Top 4024,902.041680.68%
Capped All Share26,447.501580.60%
JSE TABACO 8,157.50310.38%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
30/07/2014ABSABANK-PJune 2014 (Interim)
30/07/2014B-AFRICAJune 2014 (Interim)
30/07/2014OANDOMarch 2014 (Q)
30/07/2014SABVESTJune 2014 (Interim)
30/07/2014SABVEST-NJune 2014 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
CULINAN5.525/07/1415/08/1425/08/14ZAR 0.0550
ANGLO25/07/1401/08/1418/09/14USD 0.3200
CULLINAN25/07/1408/08/1418/08/14ZAR 0.0100
FIRSTRANDB-P24/07/1415/08/1425/08/14ZAR 3.4111
TOWER24/07/1408/08/1418/08/14ZAR 0.4160
Ex Div**
Share NameDec-DateLDTPay-DateAmount
BRAIT04/06/1425/07/1404/08/14ZAR 0.3195
INVLTD22/05/1425/07/1415/08/14GBP 0.1100
INVPLC22/05/1425/07/1415/08/14GBP 0.1100
WESCOAL24/06/1425/07/1404/08/14ZAR 0.0380
TRUSTCO30/06/1425/07/1422/08/14NAD 0.0275

Upcoming AGMs**
CodeCompany NameDateStatus
SNVSantova Ltd.29/07/2014Confirmed
TASTaste Holdings Ltd.29/07/2014Confirmed
RBARBA Holdings Ltd.29/07/2014Confirmed
APFAccelerate Property Fund Ltd29/07/2014Confirmed
TONTongaat Hulett Ltd.30/07/2014Confirmed

Stock Exchange News Service
29/07/201417:14CAPITAL PROPERTY FUND - Capital Property Fund Limited - New Financial Instrument...
29/07/201417:07AFRICAN RAINBOW MINERALS LIMITED - Acquisition of securities by clients of Allan...
29/07/201417:00DATATEC LIMITED - Dealing in securities by the company secretary
29/07/201417:00EOH HOLDINGS LIMITED - Dealings in Securities by a Director
29/07/201416:35BSI STEEL LIMITED - Dealing in securities
29/07/201416:15DOLOMITE CAPITAL LIMITED - DOL006-New Instrument Listing
29/07/201416:14OLD MUTUAL PLC - Total Voting Rights and Shares in Issue
29/07/201415:45FAMOUS BRANDS LIMITED - Directors' dealings in securities
29/07/201415:24HARMONY GOLD MINING COMPANY LIMITED - Fatality at Harmony's Doornkop Mine
29/07/201415:00ILIAD AFRICA LIMITED - Trading Statement
29/07/201414:03BRIMSTONE INVESTMENT CORPORATION LD - Fulfilment of conditions precedent regardi...
29/07/201414:00OLD MUTUAL PLC - Public Opening Position Disclosure/Dealing Disclosure by a Pers...
29/07/201413:45TASTE HOLDINGS LIMITED - Results of Annual General Meeting
29/07/201413:44SANTOVA LIMITED - Results of the Annual General Meeting
29/07/201412:45ACCELERATE PROPERTY FUND LTD - Results of Annual General Meeting
29/07/201412:43NIVEUS INVESTMENTS LTD - Results Of General Meeting And Finalisation Announcemen...
29/07/201412:06RBA HOLDINGS LIMITED - Results of the annual general meeting
29/07/201412:00A E C I LIMITED - Results presentation
29/07/201411:50BETTABETA CIS - BBET40 - Distribution Announcement
29/07/201411:50BETTABETA CIS - Distribution Announcement - BGREEN
29/07/201410:53BSI STEEL LIMITED - Dealing in securities
29/07/201410:52ABSA BANK LIMITED - New Financila Instrument Listing - ASN028
29/07/201410:52BSI STEEL LIMITED - Dealings by an associate of a director
29/07/201410:35OLD MUTUAL PLC - Public Opening Position Disclosure/Dealing Disclosure by a Pers...
29/07/201410:34OLD MUTUAL PLC - CANCELLATION OF S347204 Public Opening Position Disclosure/Deal...
29/07/201410:30INVESTEC BANK LIMITED - Investec Bank Limited- Issue of IVC041
29/07/201410:00MURRAY & ROBERTS HOLDINGS LIMITED - Notice of acquisition of Murray & Roberts se...
29/07/201409:30RESOURCE GENERATION LIMITED - Quarterly Report for the three months ended 30 Jun...
29/07/201409:20TAWANA RESOURCES NL - Exciting New Drill Targets Defined
29/07/201409:00KIBO MINING PLC - Kibo Announces Commencement of Rukwa Coal to Power Project (RC...
29/07/201408:00MONDI PLC - Mondi Group: Trading Statement
29/07/201407:30INVESTEC BANK LIMITED - Tap - IBL46
29/07/201407:30INVESTEC BANK LIMITED - New Issue - IBL63
29/07/201407:30INVESTEC BANK LIMITED - New Issue - IBL65
29/07/201407:30INVESTEC BANK LIMITED - New Issue - IBL64
29/07/201407:05A E C I LIMITED - Condensed consolidated unaudited interim financial results end...
29/07/201407:05BRITISH AMERICAN TOBACCO PLC - Trandaction in own shares

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