Old Mutual distances itself from Futuregrowth’s call on state-owned enterprises
OLD Mutual says it will "engage" subsidiary Futuregrowth Asset Management on the decision to suspend loans to six state-owned enterprises. Futuregrowth said its decision, announced on Wednesday, was due to concern about how they are managed, along with government infighting and threats to the independence of the Treasury. Futuregrowth Asset Management is one of a number of asset management boutiques owned by Old Mutual, and has a mandate to make independent investment calls on behalf of its clients. ALSO READ: Key asset manager drops state firms It is also Africa’s biggest specialist fixed-income money manager. The six state-owned enterprises affected by Futuregrowth’s decision are: Eskom, Transnet, the South African National Roads Agency (Sanral), the Land Bank, the Industrial Development Corporation (IDC) and the Development Bank of Southern Africa (DBSA). Futuregrowth chief investment officer Andrew Canter has said the decision to suspend additional loans will stand until the ass...
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