GLENRAND M I B LIMITED - GLENRAND MIB BENEFIT SERVICES ON THE EXPANSION PATH
Glenrand M I B Limited
(Incorporated in the Republic of South Africa)
(Registration number 1997/008001/06)
Share Code: GMB ISIN : ZAE000018529
GLENRAND MIB BENEFIT SERVICES ON THE EXPANSION PATH
Glenrand MIB Benefit Services has acquired 100% of the business of Cape Town
based specialist pension fund administrators, Ten-50-Six, from African Merchant
Bank (AMB) and minority shareholders.
The acquisition, which has been approved by the Financial Services Board (FSB),
is part of the on-going strategic drive to build Glenrand MIB into a formidable
market player in the classic Benefit Services areas of retirement fund
consulting, financial planning, investment consulting, healthcare consulting and
administration.
The acquisition recognises the trend towards members` investment choice and away
from the `one-size-fits-all` fund administration philosophies of the past points
out Glenrand MIB Benefit Services CEO, Andrew Crawford.
Coupled with the groundswell in favour of defined contribution funds, portable
benefits and the role played by benefit packages in the recruitment and
retention of key personnel, the acquisition took on its full perspective and was
an ideal fit which brought together complementary skills sets he said.
Ten-50-Six had for some time been the pre-eminent real-time member level
administrators in the South African market.
They had come out of the Linked Investment Service Provider (LISP) environment
and had the right mindset and approach for defined contribution administration.
Client continuity was assured by the appointment of Richard Smith, previously
MD of Ten-50-Six, as head of administration at Glenrand MIB. Richard and his
team would now be able to leverage off the Glenrand MIB brand name, the only
retirement fund administrator with ISO 9001 accreditation.
Their focus was complementary to that of Glenrand MIB which had extensive
experience in the arena of defined benefit administration and operates a very
robust defined benefit system.
Ten-50-Six brought with them a member base of some 23 000, constituted in a
variety of mainly white collar orientated funds, which, in keeping with market
trends, were also moving towards individual member choice.
The move was seen to be extremely positive for clients in that Ten-50-Six now
had critical mass that would translate into client benefits by overcoming lack
of scale and providing certainty regarding the future of the business.
Importantly Ten-50-Six also brought with them, a `linked only` (ie non risk
business) life licence which facilitated risk-free unitisation of investments.
They are now able to plan for future growth and broaden their market appeal to
all sizes of funds and for that matter, high-net-worth individuals, within a
consulting framework served by strong infrastructure.
However there was no intention to establish a multi-manager environment. `We are
about consulting,` Crawford emphasised.
Ends
Date: 15/10/2004 12:31:40 PM
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