Multi-billion dollar fund manager Allan Gray adds voice to state-owned enterprise funding halt

by Reuters 18 views0

Rand on track to end 2015 more than 35% weaker against the dollar

CAPE TOWN (Reuters) – South Africa’s privately-owned Allan Gray investment managers said on Thursday that ongoing uncertainty at state-owned firms could impact investment decisions.

“We hope that the current uncertainties and governance concerns will soon be resolved and this will likely impact our views on the attractiveness of SOE (State Owned Enterprises) debt as an investment for our clients,” Andrew Lapping, chief investment officer of the firm with about 500 billion rand ($34 billion) assets under management, told Reuters.

READ: Land Bank, Transnet, Eskom respond to S.A’s largest debt manager loan suspension 

READ: Why Futuregrowth is suspending loans to S.A’s state-owned enterprises

Futuregrowth, which manages client assets of around $12 billion, said on Wednesday it would no longer lend to six state-owned firms, citing political turmoil in the face of the investigation on Finance Minister Pravin Gordhan.

($1 = 14.7211 rand)

(Reporting by Wendell Roelf; Editing by James Macharia)