Issued: 7 April 2016
Listed financial services company, Ecsponent Limited, today announced that its Botswana subsidiary, Ecsponent Asset Management (Pty) Ltd was awarded a licence to operate as an Investment Company with Variable Capital (ICVC) in Botswana. Ecsponent has a 70% stake in the Botswana operation.
Ecsponent CEO, Eune Engelbrecht, says that the licence will provide the group with a larger and more diversified investor base in both the retail and institutional sectors. “This licence opens avenues for Ecsponent to serve a larger section of these markets and positions us well to expand our institutional and retail investment offerings.”
This announcement comes off the back of Ecsponent’s recent annual results announcement for the 2015 financial year, with the group’s profits after tax increasing by 281%.
The group’s financial services operations, which includes capital raising through the preference share programme and SME funding, continued its exponential growth during the period, with total assets increasing by over 420% to R443 million and a net asset value of R93 million.
Commenting on the results, Engelbrecht said that during the period under review, the group’s strategic focus remained on investment in companies, specifically in the financial services sector, that have clear African and global market applications.
With growing results in financial services, the group has established a solid base for expansion in this area. The licence awarded in Botswana also aligns with the group’s recent acquisition in South Africa of a majority stake in Clade Investment Management (Clade) to enhance Ecsponent’s asset management capabilities locally. The six South African retail funds under Clade’s management have all been top performers in their categories since inception, and the asset manager also received the Bond Exchange of South Africa’s Spire Award for Most Innovative Product.
Combined, these developments leave Ecsponent well positioned to expand its institutional and retail investment offerings. “The group’s vision to develop a robust and complementary financial services group of companies is taking shape and showing returns,” Engelbrecht concludes.