Allan Gray, the country’s fourth-largest asset manager, has defended its decision to invest in Net1 UEPs, the controversial parent company of social grants distributor Cash Paymaster Services (CPS). Net1 UEPS was a "controversial stock" that prompted "vigorous debates" among Allan Gray’s investment team, said chief investment officer Andrew Lapping. Allan Gray, which had assets under management totalling R461.7bn at June 2016, holds a 15.6% stake in the company on behalf of investors. Net1 UEPS owns CPS, which distributes social grants on behalf of the South African Social Security Agency (Sassa). The firm is at the centre of a numerous legal challenges by the Black Sash and Corruption Watch, among others. At the heart of these are allegations that various Net1 UEPS subsidiaries have unduly benefited from the social grants contract administered by CPS by selling and marketing products such as microloans and insurance to Sassa cardholders. The group, which is dual-listed on the Nasda...
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