MyMoney Online

ANC to investigate using your pension fund to save Eskom, protect its monopoly

The problem with socialism is that you eventually run out of other people's money.

Bruce Whitfield quotes Margaret Thatcher

The ANC election manifesto makes it clear that the party will look into forcing pension funds to invest in state-owned companies.

The rand fell by 1% upon analysis of the manifesto by international banks.

The existential threat to the economy that Eskom poses is forcing a debate around the need to compel asset managers and banks to lend to the failing power producer.

The manifesto implies that the ANC continues to back Eskom as a monopoly.

The Money Show’s Bruce Whitfield interviewed Albert Botha, Head of Fixed Income Portfolio Management at Ashburton Investments.

Listen to the interview in the audio below (and scroll down for quotes from it).

Historically it was used by the National Party to force pension funds to invest in government-owned entities…

Albert Botha, Ashburton Investments

It [prescribed assets] allocates capital inefficiently… There are more effective ways that other governments use…

Albert Botha, Ashburton Investments

If you give mispriced funding to struggling SOEs… You might just delay the inevitable rather than solving the initial problem…

Albert Botha, Ashburton Investments

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