Avior Capital Markets - Alexander Forbes Equity Holdings Proprietary (1965) Alexander Forbes | Dust has settled

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Avior Capital Markets

David Talpert ...

Warwick Bam

Alexander Forbes | Dust has settled

We rank Alexander Forbes' (AFH) corporate governance as â€œgoodâ€ with a score of 3.28 (FY'18: 2.9). CY '18 was disruptive for AFH. The board dismissed Andrew Darfoor on 25 Sep '18 prompting further resignations from the CFO, CRO, Investments CEO and Chief HR officer. The swift appointment of Dawie de Villiers restored balance to the executive team and focused the strategy. Our previous report expressed concern for a deterioration in corporate culture and insufficient change management during Darfoor's tenure. However, we were disappointed with how the board effected managerial changes and the impact it has had on the business. In our view, the R339m write-off of a failed IT project suggested poor governance and an incoherent strategy. Under the new strategic direction, we expect improved focus to support better governance and board oversight.

16/08/2019 13 EN

Underlying

Alexander Forbes Equity Holdings Proprietary

Alexander Forbes Group Holdings Limited is a financial services company. The Company is in the business of creating, growing and protecting clients' wealth and managing their financial risk, assisting its individual clients in securing their financial well-being. It offers integrated retirement, and investment solutions as well as wealth and asset management. Its services include Consulting and Actuarial Services, Retirement Fund Services, Healthcare Services, and Trust and Beneficiary Services. The Company provides valuations and varied employee-benefit consulting and actuarial services. It offers healthcare consulting, health management solutions and technical advisory services. The Company offers solutions for individuals, including money management, budgeting and savings.

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ZAE000191516 Johannesburg Stock Exchange South Africa

Provider

Avior Capital Markets

Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.

Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.

Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.

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Analysts

David Talpert

Warwick Bam

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Alexander Forbes | Dust has settled

Avior Financials | Alexander Forbes | Transaction Capital | JSE trading stats

Alexander Forbes | Stranded in a sea of costs

Tiger Brands | ESG | Pressed to execute

SA Investment Strategy | Review of January 2020 for SA investors: Coronavirus weighs on the ZAR

SA Banks | Low credit risk in commercial property | Time to buy SA banks

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