PENSION FUND ASSET MANAGEMENT


Pensions are a key aspect of any modern society. And investment returns are crucial for sustainable and effective pension schemes. Members and trustees need to take an active interest in their pension schemes and the returns that their investment managers generate

Our Role as Pension Fund Managers

Investment management is the professional management of various securities (shares, bonds and other securities) and assets (e.g., real estate), to meet specified investment goals for the benefit of investors. As Alliance Capital, we propose and implement, with the approval of the trustees, appropriate investment strategies based on your pension fund’s risk profile and investment goals.

  • Alliance Capital will undertake the following on your behalf:-

    Fund analysis

    Which involves conducting an assessment on your pension funds unique circumstance, requirements and risk profile. The fund analysis can be used by the trustees to generate an appropriate investment policy with determined asset allocations and exposures.

    Portfolio construction

    After analyzing the fund profile, we will recommend appropriate investments with a view of outperforming certain benchmarks including, but not limited to, inflation, the stock market index and average money market yield.

    Investment decision-making

    We execute and ensure that investments are placed according to an agreed investment policy.

    Performance monitoring

    This involves ensuring compliance with the agreed exposures to different asset classes, proposing amendments in light of changing market conditions and making portfolio adjustments accordingly.

    Reporting

    Detailed reporting and presentations to trustees is normally done on a quarterly basis, with monthly portfolio schedules and valuations containing the various assets of the fund. Fund performance is the acid test of fund management and trustees must ensure that the fund’s performance is measured appropriately against set benchmarks, inflation, indices and other funds.

PORTFOLIO INVESTMENT MANAGEMENT


  • This service is designed to help high networth individuals and institutional investors to manage their investment portfolios professionally with the aim of maximising returns in line with risk preferences and requirements in terms of income and/ or capital growth.

    As an investor with a sizeable portfolio of equities, fixed or call account deposits, treasury bills, real estate or bonds in any combination, you may not have the time or inclination to closely monitor and manage your portfolio effectively. We take this burden off you by ensuring that your portfolio is giving you optimal returns depending on your risk profile and appetite. With regular reports to you, discussions and updates on economic and investment matters, our professional management team will ensure that your interests are safeguarded at all times so that you can comfortably focus on other activities, safe in the knowledge that your investments are in the right hands.

  • SHARE INVESTMENT SERVICES

    Apart from pension fund asset management, portfolio management and corporate finance advisory services, Alliance Capital is also registered by the Malawi Stock Exchange as a Non-Member Institution (NMI). As an NMI, Alliance Capital is authorised to handle share transactions on behalf of clients under our Share Investment Services. This includes arranging safe custody, investment advice and execution of buy or sell orders. And the great thing is that this service costs you virtually nothing apart from the normal brokerage fee charged by stockbrokers.

    SHARE TRANSACTION COMMISSION CHARGES

    Stockbroker’s commissions are regulated by the Malawi Stock Exchange and are currently as follows for both purchase and/or sale of shares.

    • On the first MK50,000.00 a maximum of 2% applies
    • On the next MK50,000.00 a maximum of 1.5% applies
    • Over MK100,000.00 a maximum of 1% applies
    • Plus a basic charge of MK50.00

Alliance Capital simply shares in the stockbrokers commission and does not charge extra for handling your transaction. Meanwhile you enjoy professional, objective advice based on our knowledge and experience in the market.

MONEY MARKET BROKERAGE


Our money market broking service is an agency relationship where you, as principal, give us a mandate to invest funds on your behalf for a small fee. This service is designed to provide you with a better return by aggregating sums from a multitude of investors and pooling them to create the requisite critical mass that enables us to negotiate better rates on your behalf. There are obvious economies of scale that accrue to our investors and you also benefit from our knowledge of the market and professional management of your investment.

  • Whilst the sums are pooled for purposes of investment, we have a robust asset management system that maintains a record of your individual account. Placements are made only with bona fide registered financial institutions and we provide you with confirmations of any investments made on your behalf. Please note where counterparty limits are not in place, any placements are collateralized via scrip (mostly Treasury Bills) which we retain under dual custody. We also regularly update ourselves of the financial standing of our counterparties as part of our risk management procedures. Fees are negotiable depending on market conditions, amount and tenor.

    We manage money broking transactions as agents for our clients. By pooling funds we are able to negotiate wholesale rates with all major banks. This ensures a better rate on call and fixed term deposits. We also tender for Treasury bills and Bonds on behalf of our clients as well as to execute secondary trades.

  • CORPORATE FINANCE ADVISORY SERVICES

    At Alliance Capital, your transaction is important to us, regardless of size. Whether advising a private seller or managing a corporate divestiture, we provide responsive and insightful advisory services to companies in acquisition, divestiture and capital raising transactions. We and our network of partner-consultants, work closely with clients to assist them in identifying opportunities and risks. We pay attention to detail and ensure constant feedback and interaction with them throughout the process until the transaction if finalised. Our corporate finance advisory services include:

  • Sales and divestitures including due diligence and valuations
  • Acquisition joint venture and alliance
  • Capital restructuring
  • Debt and equity capital raising especially for large scale real estate/ property and infrastructural projects

Fees are negotiable and may be fixed, percentage-based or time-based. Call us on +265 1 830 704 or e-mail us on info@alliancecapitalmw.com for more information.

FEE STRUCTURE


Pension Fund Asset Management/ Portfolio Investment Management

Fee Structure for Pension Fund and Portfolio Management Fees are negotiable depending on the nature of the mandate and the size of the fund. There are basically two options available:-

Flat Fees

Percentage of fund per annum deducted monthly in arrears and Small percentage of turnover to administer, manage and market properties.

OR

  • Flat Fee plus Incentive/ Performance Fees

    Percentage of fund per annum basic( min payable monthly in arrears) , plus Agreed Percentage for performance above benchmark portfolio return.

    Share Investment Services

    No charge. As a registered Non-Member institution (NMI) of the Malawi Stock Exchange, Alliance Capital Limited enjoys a share of the normal stockbroking commission paid by investors to stockbrokers for any buy or sale orders. So our Share Investment Service is virtually free!

    Money Market Brokerage

    Fee/ commission negotiable depending on amounts and prevailing market interest rates

    Corporate Finance Advisory

    Fees are negotiable and may be fixed, percentage-based or time-based

FUNDS TRANSFERS/ BANK DETAILS


Malawi Kwacha accounts:

1. Standard bank of Malawi,
Account name:Alliance Capital Limited
Account No: 0140085814901,
Current Account: Blantyre branch

2. NBS Bank,
Account name:Alliance Capital Nominees
Account No: 0020367251019,
Current Account: Blantyre branch

FCDA Account:

1. First Merchant Bank Ltd, Blantyre Malawi
Swift Code:FMERMWMW
USD A/C No: 36154853
Beneficiary:Alliance Capital Ltd
Account No: 0730037101

PAY:- Citibank N.A., New York, 111 Wall Street, Swift Code: CITI US 33, ABA Routing Number: 021000089 .