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[September 01, 2014]
Britam asset management CEO resigns after 3 years [Business Daily (Kenya)]
(Business Daily (Kenya) Via Acquire Media NewsEdge) The CEO of Britam's asset management unit Edwin Dande has resigned after about three years in charge of the group's portfolio that currently stands at Sh36.3 billion. He has been replaced in an acting capacity by Jude Anyiko, a portfolio manager at the company.
Mr Dande was appointed CEO of British-American Asset Managers (BAAM) in 2011 and was in charge of the unit which Britam is relying on to grow returns for itself and its cash-rich clients who pay advisory and administration fees.
"Mr Dande is leaving to pursue personal interests," Britam said in a statement yesterday.
The unit posted a pre-tax profit of Sh244 million last year compared to Sh115.9 million in 2012, representing a 110 per cent growth rate. This saw it contribute 7.6 per cent to Britam's total pre-tax profit of Sh3.1 billion last year. BAAM's profit growth was driven by a 62 per cent increase in assets under management to Sh36.3 billion.
Britam has identified the asset management unit as a critical part of its growth strategy, using it to deploy cash raised from clients and the insurance operations. BAAM, for instance, is slated to run Britam's proposed Sh10 billion property fund that will invest in the booming regional real estate sector.
The property fund will reward investors with earnings derived from a mix of rental income and capital gains realised from disposal of investments. It is expected to generate more earnings for Britam's portion of Sh1 billion equity portfolio besides boosting the investment firm's fees for its role as the asset manager.
The asset management unit is increasingly investing in property to diversify away from quoted equities and fixed income investments. It raised hundreds of millions of shillings from investors early last year and used the proceeds to buy Langata House –a commercial building located at Wilson Airport.
Britam said investors in the property will earn a rental yield of eight per cent in dollar terms, on an annual basis besides capital gains.
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