This fund manager never invested in Steinhoff, here’s why they won’t touch it
Is the grass finally greener for Steinhoff investors? Joining CNBC Africa for more is Zwelakhe Mnguni, Chief Investment Officer, Benguela Global Fund Managers.
Tue, 13 Aug 2019 15:44:22 GMT
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AI Generated Summary
- Zwelakhe Mnguni, Chief Investment Officer at Benguela Global Fund Managers, maintains the firm's stance of avoiding investments in Steinhoff due to concerns over the company's negative asset value.
- Mnguni highlights the importance of assessing the quality of a business and the attractiveness of its assets before considering it as an investment opportunity, citing Steinhoff's current challenges.
- Governance issues at Steinhoff, including the lack of transparency regarding the PWC report, raise doubts about the company's commitment to good corporate governance and investor confidence, according to Mnguni.
Benguela Global Fund Manager, renowned for his aversion to investing in Steinhoff, remains steadfast in his decision amid recent speculations about the future of the embattled company. In a recent interview with CNBC Africa, Zwelakhe Mnguni, Chief Investment Officer at Benguela Global Fund Managers, reiterated his firm stance against considering Steinhoff as an investment opportunity. Despite recent statements from Steinhoff's CEO hinting at a potential recovery path and a potential rights issue to raise capital, Mnguni remains unmoved in his assessment of the company's prospects. Mnguni's refusal to invest in Steinhoff stems from his assessment of the company's underlying fundamentals, particularly its negative asset value and governance issues. Mnguni emphasized the importance of assessing the quality of a business and the attractiveness of its assets before making investment decisions. With Steinhoff currently facing challenges related to its asset value and governance, Mnguni remains skeptical of the company's ability to deliver returns to investors.
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