Fund sees future in Land Bank

27 September 2016 - 08:46 By Reuters

South African fixed-income asset manager Futuregrowth has lifted a suspension on buying the bonds of state-run Land Bank subject to amendments, it said yesterday. Futuregrowth, which manages client assets of about R170-billion, halted buying the debt of six state-owned firms - including power utility Eskom and logistics firm Transnet - last month, citing political uncertainty following investigations into Finance Minister Pravin Gordhan.But its ban on buying the other five firms' debt remained in place though it was in talks with the companies about the issue, it said yesterdayIts decision to lift its ban on buying the debt of Land Bank, a major lender to farmers, follows an "extensive review of the governance and investor protection mechanisms", Futuregrowth said."Land Bank agreed to improve transparency and public disclosure of its governance structures."Another South African fund manager, Abax Investments, said this month it had reduced purchasing bonds of state-owned firms. ..

There’s never been a more important time to support independent media.

From World War 1 to present-day cosmopolitan South Africa and beyond, the Sunday Times has been a pillar in covering the stories that matter to you.

For just R80 you can become a premium member (digital access) and support a publication that has played an important political and social role in South Africa for over a century of Sundays. You can cancel anytime.

Already subscribed? Sign in below.

Questions or problems? Email or call 0860 52 52 00.