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

PUBLISHED: Thu, 01 Sep 2016 16:57:21 GMT
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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

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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)