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Tag Archive 'Investec Asset Management'

Mar 31 2011

This is a true story

Published by under Companies,Europe,Top Stories

Every blog about SA business people in Europe has to report this story.

It’s a true story about a man and a team. Check it out.

It’s the IAM story.

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Jul 14 2009

Two SA asset managers to work for charity

Published by under Companies,More News

Two SA-born asset management companies are among a group of twelve asset managers which have banded together for charity.

Investec Asset Management and Old Mutual Asset Managers have joined forces with Artemis, Aviva Investors, Axa Investment Managers, BNY Mellon, F&C, Ignis, Invesco Perpetual, JP Morgan, Martin Currie and Threadneedle to launch a unique multi-manager vehicle, called Invest & Give Fund, and which will donate a proportion of the management fee it earns to charity.

The annual fee of the fund is 2.25% and 0.6% of this will be donated to The Prince’s Trust, a youth charity which has given 600,000 young people the skills and qualifications to find a job since its launch in 1976, reported Portfolio-Advisor.com.

The fund is the first of its kind to be eligible for Gift Aid, which equates to an additional 28p for every £1 that the charity receives from investors in the fund.

The responsibility for managing the fund fell to North Investment Partners’ John Husselbee. He will invest across asset classes and regions with an aim to achieve long term capital growth, wrote Portfolio-Advisor.com.

Former Conservative cabinet minister The RT Hon the Lord Young of Graffham, president of The Prince’s Trust Patrons Network and chairman of the Invest & Give Advisory Committee, said: “For the very first time Invest & Give will align the interests of the City, individual investors and the community in an endeavour that will produce, over and above the usual returns because it will help young people back to work through the work of The Prince’s Trust. Invest & Give is setting a challenge to the financial community by creating a socially responsible investment and I hope that this will be but the first of many such funds in the years to come.”

The fund will sit in the IMA Balanced Managed sector. The standard initial charge is 2%, though an offer period – with the initial charge discounted to 1% – will run until 17 August. The minimum investment is £1,000.

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Apr 07 2009

By the short and curlies…

Published by under Companies,More News

…that’s where Orsu Metals Corporation and Central African Gold (CAG) seem to have Investec Bank and Investec Asset Management, if I understand the facts right.

Both mining companies owe Investec money, both are in default and both seem to be putting pressure on their moneylenders for better terms and/or more money (going by the statements on their websites). At least one “threatens” liquidation, if Investec doesn’t “cooperate”. 

The banks and Orsu haven’t yet come to an agreement on the way forward. Read all about that here.

Investec Bank, Investec Asset Management (IAM) and CAG have found a “potential solution”, ie. the placement of shares**. And they’ve found potential takers. Should something go wrong at the last minute (eg. at the shareholders’ meeting), Investec can throw more money at the problem, or lose what it’s got in the company (IAM holds 13.5% in CAG and Investec has an outstanding loan capped at $5 million).   

The shareholder meeting is scheduled for 20 April. That’s when we’ll know whether CAG has let go of the short and curlies…  

** More background info comes from the CAG website (warning: it’s in Legalese): 

The Board announced today that, subject to Shareholder approval, the Company proposes to raise approximately £5.7 million, before expenses by issuing 565,970,992 new Ordinary Shares at a price of 1.00 penny per share.

The net proceeds of the Placing will enable the Company to satisfy its remaining obligations to repay Investec Bank and, together with the funds anticipated to be received from the proposed disposal of the Malian assets, provide the working capital necessary for the Directors to enhance the value of the Company’s remaining assets in Zimbabwe and Botswana.

In the event that the Malian assets are not sold, the Board will have to explore alternative sources of funding and/or review the level of investment in Zimbabwe, in order to fund the payment to Investec Asset Management and ECP Africa under the New Loan Agreements. 

The Directors expect the working capital provided by the Placing and the sale of the Malian assets will be sufficient to fund the restarting of gold production in Zimbabwe, so far as is appropriate given prevailing Zimbabwean economic and political considerations, and to evaluate the prospecting projects in Botswana, after the repayment of the Investec Bank Debt.

Background

On 8 July 2008, the Board announced that, in addition to $6.94 million raised from ECP and Investec Asset Management in the form of convertible loans, the Company required a further $10.0 million of funds, which it intended to raise via an equity placing to be undertaken in August 2008.

However, on 25 September 2008, in the Interim Results Statement of the Company for the period ended on 30 June 2008, the Board announced that, as a result of the general market turbulence, including a volatile gold price and weak and deteriorating equity markets, the Board had decided to conduct a more wide ranging review of funding options, including examining options for a capital injection aimed at maximising shareholder returns. 

Unfortunately, the Board was unable to identify a suitable option and, on 12 November 2008, the Company’s shares were suspended from trading on AIM pending clarification of the Company’s financial position and the requirement for further short and medium term funding to enable the Company to continue operating. The Company’s shares have remained suspended from this date. 

Following this announcement, Greg Hunter, the then Chief Executive of the Company, resigned and the role of Chief Executive was assumed by Roy Pitchford, one of the then Non Executive Directors, who had served on the Board since January 2004.

On 4 December 2008, the Company announced that, in common with a number of other mining operators in Zimbabwe, its subsidiaries had ceased all operations in Zimbabwe due to the adverse political and economic climate, but the Group would continue to maintain its assets there, to the extent practicable.

On 14 January 2009, the Company announced that its then 100 per cent. owned subsidiary, CAG Ghana, had received a notice of default (the “Notice of Default”) from Investec Bank regarding the non-payment of monies due on the Investec Bank project loan facility agreement (the “PLFA”), and the non-payment of monies due under various gold forward transaction agreements (the ”HFA”) with Investec Bank. 

The Notice of Default required that CAG Ghana repay the full amounts outstanding under the PLFA, which totalled approximately $20.92 million, and the monies due, if any, under the HFA. In addition, Investec Bank invoked a power of attorney, which it had been granted by CAG under the terms of a charge entered into between Investec Bank and the Company on 30 January 2007 as part of the agreement to secure the funding for CAG Ghana under the PLFA. The charge was created over the entire issued share capital of CAG Ghana and therefore, once Investec Bank had invoked the power of attorney, it was able to transfer all 90,000 CAG Ghana shares in issue and held by the Company to Investec Bank. 

Consequently, Investec Bank became the legal owner of the Bibiani gold mine through its holding of the entire issued share capital of CAG Ghana.

In November 2007, in order to secure an additional facility amount for CAG Ghana, CAG had entered into a guarantee with Investec Bank (the “Guarantee”). On 15 January 2009, the Board received notification from Investec Bank that, under the terms of the Guarantee, it sought to recoup from CAG all of the outstanding monies due from CAG Ghana, save for those monies due under the HFA which were not covered by the Guarantee. However, it was the Board’s view that CAG was liable for no more than $5.0 million (plus any capitalised interest which may be due to be paid) to Investec Bank under the PLFA and the HFA.

On 10 February 2009, the Company announced that it had entered into a legally binding agreement with Investec Bank under the terms of which any liability which it had towards Investec Bank would be capped at $5.0 million. The Company undertook to pay Investec Bank this sum by 18 March 2009 (the “Payment Deadline”), but as at the date of this announcement, has not done so. 

As a result of the time required to arrange the proposed Placing and the necessary EGM notice period, the proposed Placing is expected to be completed on 22 April 2009, a few weeks after the Payment Deadline, after such date any outstanding amount of the Investec Bank Debt shall incur cash pay interest of three per cent per annum above LIBOR. This means that an additional amount of interest of approximately $17,000 will also be due to be paid to Investec Bank under the terms of the agreement.

The Board has decided that the Placing is the most expeditious route by which the necessary funds can be raised in order to meet the remaining liability to Investec Bank and, together with the sale of the Malian assets, to provide the Company with sufficient working capital to maximise the value from its remaining assets for the benefit of Shareholders as a whole.

Details of the Placing

The Company has conditionally placed 565,970,992 Placing Shares with ECP Africa and HBD at the Placing Price to raise net proceeds of approximately £5.7 million, before total costs of approximately £0.5 million. 

ECP Africa is a Mauritian public company limited by shares which makes investments in companies operating in Africa. ECP Africa is managed by ECP Manager LP, a limited partnership organised under the State of Delaware which has offices in Tunis, Casablanca, Abidjan, Lagos, Douala, Johannesburg and Washington District of Colombia). 

ECP Africa currently holds the beneficial interest in 17.91 per cent. of the Existing Ordinary Shares. Following completion of the Placing, ECP Africa’s expected holding in the Enlarged Share Capital will be 42.56 per cent. On completion of the Proposals and Admission, ECP Africa’s expected holding in the Resulting Share Capital will be approximately 50.02 per cent.

HBD is a private investment company, whose shares are beneficially held by an individual shareholder, registered in the Isle of Man and has no current shareholding in the Company.

Following completion of the Placing, HBD’s expected holding in the Enlarged Share Capital will be 38.41 per cent. On Completion of the Proposals and Admission, HBD’s expected holding in the Resulting Share Capital will be approximately 28.18 per cent.

The City Code does not apply to the Company. Therefore, while the number of shares held by each of HBD and ECP Africa following completion of the Placing will be greater than 29.99 per cent. of the Company’s issued share capital, there will be no requirement for HBD or ECP to make a mandatory offer to all other Shareholders, as would be the case if the City Code applied.

The Placing Shares will, on Admission, be credited as fully paid and rank pari passu in all respects with the Existing Ordinary Shares, including the right to receive all dividends and other distributions declared, made or paid on the Ordinary Shares after that date.

The Placing Shares represent approximately 331.27 per cent. of the Existing Ordinary Shares, 76.81 per cent. of the Enlarged Share Capital and 56.37 per cent. of the Resulting Share Capital. Application will be made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM. It is expected that, conditional upon the passing of the Resolutions at the EGM, dealings in the Placing Shares and the Conversion Shares will commence on 22 April 2009. Also, on this date the Suspension is expected to be lifted. An announcement will be released, via RNS, to confirm that this has occurred.

On Admission, the Company will have a market capitalisation of approximately £10.0 million, based on the Placing Price of 1.00 penny per Ordinary Share, assuming no exercise of warrants or options between the date of this announcement and Admission, but assuming that the Conversion takes place. 

Reasons for the Placing and Future Strategy

As stated above, the primary reason for the Placing is to raise sufficient funds to meet the Investec Bank Debt and, along with the proceeds from the sale of the Malian assets, to provide sufficient working capital for the Company to continue to enhance the value of its assets in Zimbabwe and Botswana.

If the Placing is not successfully completed, the Board believes it is highly likely that the Company will become insolvent, and insolvency proceedings, such as administration or liquidation, will be commenced.


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Jan 28 2009

IAM sees potential in currencies

Published by under Companies,More News

Investec Asset Management (IAM) has strengthened its currency fund range. Read all about it here.

By actively managing currency, IAM seeks to generate returns of 2-3 percentage points above what investors would receive on money funds – an attractive proposition in this declining interest rate environment.

“Investors who have recently divested a portion of their portfolios and are currently sitting in cash may look to make their money work a little harder by using our GSF Currency Alpha Fund,” said David Aird, managing director for UK distribution at IAM.

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Jan 27 2009

IAM “brother” ready to pounce

Published by under Companies,More News

Now, where have I heard this song before? From today’s Wealth Bulletin:

Steve Elliott, chief executive of Rensburg Sheppards, one of the UK’s listed wealth advisers with around £10bn of assets under management, has signalled his interest in making acquisitions. Investec owns 48% of Rensburg Sheppards.

Ahh, here. And then the water got a little choppy.

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Dec 15 2008

Two SA managers conquer Europe

Published by under Companies,More News

I missed this bit of news early in November. Should nevertheless be on my blog and no better time than now.

It’s about awards for management excellence won by two South African managers in Europe. Go here to see who I’m talking about.

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Dec 13 2008

IAM targets Japanese investors

Published by under Companies,More News

Shinsei Bank, a bank in Japan, will help Investec Asset Management (IAM) market the IAM managed rand-denominated money market fund called The Horizon Trust in Japan.  

According to this report, the Japanese might be attracted by the high interest rates earned by money market funds in SA (relative to what are on offer in Japan).

Japanese investors will be exposed to the currency risk, however. Let’s hope they don’t read my blog.

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