for subscribers

Futuregrowth stands by loan freeze to SA state firms

Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!
Andrew Canter is the chief investment officer at Futuregrowth Asset Management. (Supplied)
Andrew Canter is the chief investment officer at Futuregrowth Asset Management. (Supplied)

Cape Town - Futuregrowth Asset Management, Africa’s biggest specialist fixed-income money manager, said while it stands by a  decision to stop lending money to six of South Africa’s largest state companies, it should have consulted with them before going public with it.

The rand dipped and yields on state power utility Eskom Holdings’ bonds climbed after the asset manager, which oversees about R170bn, announced the loan freeze on August 31, citing concerns about governance. The government and the ruling party criticised the decision.

Insurer Old Mutual, which owns Cape Town-based Futuregrowth, said it wasn’t notified beforehand and that the move didn’t represent the position of the rest of the company.

There’s more to this story
Subscribe to News24 and get access to our exclusive journalism and features today.
Subscribe
Already a subscriber? Sign in
ZAR/USD
17.09
(-1.19)
ZAR/GBP
21.76
(-0.79)
ZAR/EUR
19.89
(-0.74)
ZAR/AUD
12.01
(-0.68)
ZAR/JPY
0.16
(-0.97)
Gold
1865.96
(-0.04)
Silver
23.10
(-0.34)
Platinum
852.00
(+0.65)
Brent Crude
42.26
(+0.47)
Palladium
2204.64
(-0.02)
All Share
53587.11
(-1.22)
Top 40
49547.74
(-1.16)
Financial 15
9401.28
(-1.95)
Industrial 25
72949.70
(-1.72)
Resource 10
53453.42
(-0.10)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 1365 votes
It depends on how the funds are used.
73% - 8840 votes
No. We should have gotten the loan elsewhere.
16% - 1954 votes
Vote