THE BOTTOM LINE
Shareholders can no longer exist in accountability Gray area
Fund managers need to take responsibility for behaviour of companies in which they invest
Allan Gray, one of the most powerful and successful fund managers in the country, is to be commended for the speed with which it reversed its position on Net1. From the perspective of those, like the Raith Foundation, who see a critical role for shareholder activism, the decision by Allan Gray to engage with Net1 on issues that have dominated the media for the past few weeks is encouraging. Even more encouraging would be some sign of the other 84% shareholders (the list includes the International Finance Corporation) raising their hands. Not only did Allan Gray urge Net1, in which it has a 16% stake, to make every effort to find an interim solution to ensure grants are paid on April 1, it offered what die-hard capitalists might deem the ultimate sacrifice: "As shareholders, we would be happy if this meant Net1 foregoing all profits on the extension to ensure it happens." Twenty or so years ago, this idea of "offering up" profit might have been deemed heresy. Last week, the common re...
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