Old Mutual Distances Itself From Disinvestment Decision Taken By Futuregrowth
Old Mutual has distanced itself from the decision taken by Futuregrowth to disinvest from State Owned Companies. This comes after Futuregrowth pulled out from providing loans to Eskom and Transnet, but failed to provide reasons that make financial sense.
It is alleged that Futuregrowth’s move is linked to its unhappiness over Pravin Gordhan’s dispute with the Hawks.
In a statement Old Mutual distanced itself from the decision but indicated that it will be engaging Futuregrowth on issues relating to its move.
“Yesterday’s comments by Futuregrowth do not represent the broader views of Old Mutual. We respect the independence that fund managers need to deliver investment performance for clients, and believe that a more constructive model of engagement is needed and necessary to build and increase socio-economic development and drive financial inclusion in our country. We will engage the fund manager around these issues,” read Old Mutual statement.
Former Finance Minister Trevor Manuel who is Old Mutual’s chairman has not spoken on the matter in his personal capacity.
Public Enterprises Minister Lynne Brown warned Futuregrowth and said that it will face strong actions if it lobbies other investor to withdraw from SECs. Association for Savings and Investments South Africa (ASISA) also sent a strong message to Futuregrowth cautioning it from inviting other Fund Managers to support its decision.