31 MARCH 2015ALEXANDER FORBES GROUP HOLDINGS LIMITEDINTEGRATED ANNUAL REPORT

introduction to the group

higher purpose – why we exist

Alexander Forbes defines its higher purpose and reason for existence as helping individuals attain peace of mind by securing their financial well-being now and in the future.

The 80-year-old group, which is listed on the Johannesburg Stock Exchange and headquartered in South Africa, employs 4 111 people in 12 countries, all of whom are dedicated to delivering outstanding employee benefits solutions and administrative services for institutional clients and to securing the financial well-being of individual clients.

Alexander Forbes Financial Services (AFFS) administers funds entrusted to it by institutions, which funds are, in turn, invested to secure the post-retirement prosperity of individual members.

At 31 March 2015, AFFS administered 328 standalone retirement funds and 1 144 corporate clients within the Alexander Forbes umbrella retirement fund. These funds combined amount to 1 018 044 members under administration and R382 billion in retirement savings in South Africa.

As well as ensuring the safe, efficient administration of clients’ funds, AFFS derives income from giving expert consulting and actuarial advice, advising clients on healthcare issues and on how best to manage multi-manager pension funds. AFFS also advises individual clients on their financial well-being including financial planning, investment advice and offers individual and group life insurance products.

Investment Solutions is southern Africa’s largest multi-manager, with R322 billion in funds under administration, of which Investment Solutions managed R265 billion at the end of the 2014/15 financial year. Retail (individual) clients account for 15% of the funds Investment Solutions manages.

Alexander Forbes Insurance offers short-term insurance cover to individuals and small and medium enterprises, and insurance administration services to corporates.

AfriNet offers institutional and retail services in six African countries outside of South Africa. Alexander Forbes International houses the group’s 60% interest in the LCP actuarial consulting business, which provides pension, employee benefits and investment consulting to clients in the UK and, through affiliates, in four other countries.

In line with the Group’s Statement of Strategic Intent 2016 – 2020, it has, effective 1 April 2015, created a new reporting structure to reflect a more explicit institutional and individual client focus as well as supporting it to delivery its key strategic themes. These structures include:

  • A core, Institutional cluster (primarily the corporate businesses within AFFS and Investment Solutions)
  • A Retail cluster (AFI and the retail businesses of AFFS and Investment Solutions)
  • An Operations, Systems and Technology cluster that establishes a single point, group-wide accountability for operational excellence, technology enablement and efficiency
  • A Shared Services cluster to improve the efficacy of group services
  • The AfriNet and International businesses continue unchanged both in structure and strategy.

Alexander Forbes’ key strengths

  • Market leader in institutional employee benefits and multi-manager investments in South Africa and other sub-Saharan African countries
  • Institutional integrity with a high-performance culture
  • Well positioned to respond to changing industry and regulatory dynamics
  • Successful track record of organically developing new businesses and creating shareholder value
  • Holistic offering across the value chain
  • Deep understanding of the retail (individual) member base
  • Leading (and scalable) multi-management platform
  • Long-standing institutional client relationships with high market shares
  • Predictable revenue base and cash-generative model
  • Capital-efficient business model
  • Continuous investment into systems and core infrastructure
  • Stable and experienced management team.