Asset management companies which form part of Zimbabwe’s integrated financial services sector are regulated by the Reserve Bank under the country’s laws.
Impeccable sources this week told businessdigest that Makumbe, through Exodus and Company, intends to take over the asset management company after a management-driven disposal of the asset management firm.
Following a rights issue that raised US$500 000 minimum statutory capital requirements for MBCA Capital, the group announced that it would “reposition” and dispose the investment firm. This decision, according to sources, was an initiative backed by the group’s majority shareholders.
“This deal is a culmination of talks that took place between March and April. Shareholders in the banking group felt that the prevailing market conditions were not ideal for the group to have an investment bank. So this resulted in a management-driven disposal of MBCA Capital Management,” the source said.
The source said no “major” board changes should be expected after the conclusion of the deal, adding that the current MBCA Capital CEO Simba Chopera would remain in charge of the company after the new investors gave him a thumps-up on the basis of last year’s performance of the firm.
Chopera could not be reached for comment after he was reported to be engaged in a series of meetings.
“The challenge is now on Simba (Chopera) and his team to maintain the momentum in a market led by the “big four” which control over 90% of the market, the source said.
The company was ranked the best asset management company in the AON Zimbabwe performance survey that judged the performance of eight investment firms. Zimbabwe has 17 asset management companies traditionally led by Old Mutual Asset Management (OMAM), Imara Capital, Datvest and ABC, which enjoy a lion’s share of the market.
MBCA, according, to the survey, recorded a 150, 3% return on discretionary portfolios ahead of heavy weight OMAM.
A discretionary portfolio is an investment account arrangement in which an investment manager makes the buy-sell decisions without referring to the account owner (client) for every transaction. The manager, however, must operate within the agreed upon limits to achieve the client’s stated investment objectives.
The acquisition of MBCA comes on the back of sweeping reforms affecting the financial services sector that has seen Makumbe slowly building a financial services empire when other organisations are struggling to recapitalise. Early this year Makumbe, through the same consortium, snapped up control of NDH equities.
When reached for comment on Tuesday morning, Makumbe said businessdigest should call him after working hours. Efforts to contact him thereafter were in vain as his phone went unanswered.
Makumbe resigned from Premier Finance Group three years ago where he was the CEO.
Another asset management company, Alpha Asset Management, last month disposed at least 70% of its stake to a consortium led by former Aicco Africa Limited boss Happymore Mapara.