Report
David Talpert ...
  • Harry Botha
  • Warwick Bam

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

Alexander Forbes announced a shareholder restructure as Mercer will sell its 34.4% shareholding in AFH. AFH will buyback a 200m shares from Mercer at 515cps for R1bn.

We attended a Transaction Capital site visit to see SA Taxi's operations. Management are confident in SA Taxi's ability to grow attributable earnings by c.20% y/y.

We highlight the returns from several large SA equity funds. Sanlam followed by Coronation performed the best with one-year returns of 17.7% and 15.5% respectively. PSG has unperformed over the past year.

The JSE Ltd's trading statistics (to 17 Jan ‘20) highlight a slow start to 2020. YTD, cash equity value traded has declined by 2.8% relative to the YTD performance in H1 '19.
Underlyings
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.

Transaction Capital

Transaction Capital Limited is a South Africa-based investment holding company. The Company operates as a non-deposit taking financial services company. The Company's segments include SA Taxi, Transaction Capital Risk Services, and Group executive office. The Company operates in two principal areas: SA Taxi and Transaction Capital Risk Services. SA Taxi is a vertically integrated taxi platform utilizing specialist capabilities and data to deploy developmental credit and allied business services to manage small-and medium-sized enterprises (SMEs).It has designed its own insurance products that it sells through its own insurance cell captive entity. Transaction Capital risk services division is a provider of customer management and capital solutions through a platform, enabling its clients to mitigate risk through their customer engagement lifecycle. It provides a range of services to SMEs, which include property and trade financing, as well as invoice discounting.

Provider
Avior Capital Markets
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.

Analysts
David Talpert

Harry Botha

Warwick Bam

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