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Futuregrowth stands by loan freeze to SA state firms

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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.

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