Old Mutual statement on Futuregrowth

Ralph Mupita, Chief Executive Officer of Old Mutual Emerging Markets

Commentary by Ralph Mupita, Chief Executive Officer of Old Mutual Emerging Markets

Yesterday Futuregrowth, Old Mutual’s Fixed Income asset management boutique, announced a decision to suspend additional loans to certain State-Owned Enterprises (SOEs) until they obtain further clarity and comfort around the governance and oversight of these SOEs. 

Futuregrowth is one of a number of asset management boutiques owned by Old Mutual, and has a mandate to make independent investment calls on behalf of its clients. 

Old Mutual values the broad and deep relationships it has developed with SOEs over many years. These relationships have been key in building and increasing socio-economic development and driving financial inclusion in South Africa. 

Old Mutual believes that public-private partnerships are critical for much-needed and shared growth in South Africa and we will continue to play our part in enabling that. 

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. 

Old Mutual remains committed to our existing commercial relationships and public-private partnerships with SOEs and will continue playing a constructive and value-adding role in capital markets, in both listed and unlisted investments.