Andrew Canter and Futuregrowth Asset Management

Futuregrowth Asset Management: Funds may use one days worth of accrued interest to offset losses, the Financial Services Board said in a circular to money managers yesterday. That may not be enough to cover losses for some funds, according to Andrew Canter, chief investment officer at Futuregrowth Asset Management. The funds could also cancel units rather than impair their value, the FSB said, according to Business Week. African Bank, known as Abil, got emergency support from the Reserve Bank after the Johannesburg-based provider of unsecured loans lost most of its market value over three days last week. The lender will be split to create a bad bank with soured loans, while senior and wholesale debt instruments will be transferred to the another bank at 90 percent of face value, the central bank said on Aug. 10 and Investors in South African money-market funds holding African Bank Investments Ltd. ABL securities are facing capital losses even as money managers slash interest payments to offset writedowns of the debt. The fact is that some customers are going to wake up with less money than they had the day before, Canter said by phone from Cape Town yesterday. Its likely to be an industry-wide phenomenon, and some funds will be more affected than others. (news.financializer.com). As reported in the news.