Allan Gray cuts ties with Global & Local

By Chris Steyn, via BizNews

Africa’s largest privately owned investment management company, Allan Gray, has cut ties with Global & Local.

That has been confirmed to BizNews in an email stating: “Considering the ongoing uncertainty around the investigation into BHI Trust, we took the decision to terminate our contract with Global & Local, with a notice period.”

Global & Local has been under fire ever since it emerged that its founder Michael Haldane had punted the BHI Trust that has lost at least 220 investors close to R2-billion.

‘We can confirm that we sent a communication to Global & Local’s advised clients, who have investments administered by the Allan Gray platform,” reads the email to BizNews.

BizNews sought confirmation from Allan Gray after receiving a communication to a client that read:

“Global & Local has confirmed that it had clients invested in or with BHI Trust, an unregulated investment, which has been provisionally sequestrated following fraud being uncovered.

“The regulatory authorities are investigating BHI Trust, as well as regulated entities that may have promoted the products of BHI Trust, and the scope and timelines to resolve this investigation are not yet known.

“Considering this ongoing uncertainty, we took the decision to terminate our contract with Global & Local.”

Under the heading: What does this mean for you?, the letter continues:

“Global & Local is the appointed advisor on your unit trust investments, which are administered and held via the Allan Gray investment platform.

“Global & Local communicated today that they have concluded a sale agreement with GCI Wealth, effective 1 December 2023.

“GCI Wealth has a financial services provider contract with the Allan Gray investment platform, so you will have the option of appointing GCI Wealth as your new financial adviser. You can also appoint a different financial adviser.  To change your financial adviser, we will require appropriate authorisation of that appointment.

“In the interim and until 29 February 2024, while Global & Local remains your financial adviser on record, we will only act on instructions that you authorise…”

* Banking giant Investec cut its ties with Global & Local last month already. Their move was blasted as “wholly unfair” by Global & Local.