Shareholders must be wondering what ails Alexander Forbes, whose return to the local bourse two years ago has been less than stellar.Since its return in July 2014, the financial services company's share performance has been lacklustre, down 4%, compared to a market that has gained more than 3%. Larger rival Discovery has seen its stock rise more than 30% in that time.Alexander Forbes was bought by a private equity consortium in 2007 and delisted. In the years since its return to the market, it has seen its share of management drama, culminating in the surprise resignation of CEO Edward Kieswetter in February this year.In the wake of that resignation, the company has outperformed its peers, gaining 24%. Regardless of the re-rating, the question remains whether the company will be able to provide steady growth as it puts more work into its retail offering.Amid South Africa's economic climate and struggling employment numbers, the company's institutional cluster, which is its cre business, took a knock in the previous financial year, with operating profits in South Africa down 9%.In moving into retail, the company will be competing in the space of the Adrian Gore-led Discovery, and MMI Holdings, which owns Momentum and Metropolitan.Alexander Forbes has much to do to catch up with its peers, but analysts welcome the focus.Playing in the retail space could be a big opportunity for it, said Adrian Cloete, a PSG Wealth portfolio manager."They've got a small market share ... so there's room for them to improve and grow."If it wasn't for that, their results wouldn't have been up because their big institutional business didn't do that well due to market circumstances."In the company's annual results, released this month, its retail cluster showed a 12% rise in operating profit.Alexander Forbes chief operating officer and interim CEO Deon Viljoen hopes that leveraging the company's institutional reach and getting clients to focus on product offerings through consumer education will help grow the retail cluster.Viljoen said the company also wanted to accommodate lower-income investors by introducing cheaper investment products.Competing with Discovery, which dominates in the retail space, might be tough, but with the core business under pressure, the company is hard-pressed to diversify its offering.Another chosen avenue for growth is expansion into the continent. Afrinet, the company's African business cluster, operates in Namibia, Botswana and some parts of East and West Africa."Geographically, our focus is the African continent in the medium term," said Viljoen. But, he added, the company would notplant its flag in every country.It is betting on retirement reforms across the continent."Our core strength is employee benefits, particularly in countries where there's been some sort of social or retirement reform that compels people to save for retirement."Those are the kinds of countries that we keep an eye out for and we want to make sure that we have a strong brand presence when those things develop," said Viljoen.Sanlam has had much growth from expanding into Africa, which is where Alexander Forbes plans to focus over the next few years.As the company pushes forward with expanding its retail business in South Africa and growing its core expertise on the rest of the continent, the markets aren't too concerned that after more than four months no permanent CEO has been found."You can appoint someone very quickly, but you could make a mistake and end up with an unsuitable CEO for five years," said Cloete."The time pressure is off them and they can do a decent job of finding a suitable CEO."The board has given no indication when a new CEO will be hired.tsamelad@sundaytimes.co.za..