PAGE 2 PAGE 3 PAGE 5 PERSONAL FINANCE// NEWS// SA INVESTING// PERSONAL FINANCE// FREE LUNCH OF THE UPLIFTING STORY OF EXPLOSIVE GROWTH SATRIX ON ABSA INVESTING WORLD ACTIVE CITIZENRY FOR CAPITEC MONEY MARKET FUND

BizTHE RATIONAL PERSPECTIVENewsDigest WWW.BIZNEWS.COM SATURDAY 17 APRIL 2021 BIZNEWSCOM Minister illegally spied on Zuma critics BRIEFS The mechanisms of corruption are still strong in the ranks of ’s leadership. Anyone who dares to be outspoken about the illegal activity can expect to be monitored. Amongst the loudest voices against corruption and looting of the state is former MTN values Sygnia CEO Magda Wierzycka. Wierzycka was instrumental in exposing the Gupta Leaks in 2017 and exposed auditing firm mobile-money KPMG as a facilitator of state capture within government entities. Having been a target for criminals for quite some time, arm at about Wierzycka is well aware that she has been the subject of surveillance. A state security operative has confirmed that Magda Wierzycka is amongst a group of ‘strategic individuals’ whom he monitored through phone tapping and cellphone triangulation. R75bn This article was originally published by MyBroadband. – Melani Nathan

By MyBroadband surveillance. Those were quite stressful times because I had to get bodyguards for myself. Everywhere Mining output sees ormer intelligence minister I went, I went with bodyguards. first annual gain in David Mahlobo is facing a My children – until they went to police investigation over study in the US – had bodyguards 12 Fillegal spying activities on critics at all times. I was followed and on of former president . many occasions you could see them months The City Press reported that the following us.” Hawks are closing in on Mahlobo and have already interviewed key On why all of this happened witnesses in the matter. “I was involved in the Gupta Leaks A state security operative said release, so I probably was not the Capitec is adding people targeted in the spying most popular person as far as the File Photo: Former state security minister David Mahlobo is seen in activities included former old regime was concerned. I was 200,000 conversation with former president Jacob Zuma. (Photo: GCIS) Sygnia CEO Magda Wierzycka, involved with whistleblowers and journalism professor Anton on the recordings and alert people helping whistleblowers. I became customers Read the full article here Harber, and finance minister Tito about impending meetings based on a very vocal critic and again, that a month Mboweni. cellphone triangulation. was part of a strategy to protect my The information would be given to Magda Wierzycka on being a victim safety and to become much more Police close in on a runner who would take it to the of state spying high profile. I became a critic of the Annual retail sales minister for spying on minister. “When I became a very active regime and the corruption. What SA captains of industry. Commenting on the unauthorised critic of what was happening – not I expected was that maybe other increased by Watch full video on spying, Wierzycka said she was only of Jacob Zuma but also of the people would speak out, not activists BizNews TV aware she was followed as they were corruption that was happening in – because activists were speaking 2.3% “so obvious”. South Africa – I always said the out – but other business leaders. According to the operative, he She added that her phone was corruption in South Africa was Unfortunately, that didn’t happen. year-on-year was part of a team manning a tapped, which was evident from her actually driven by global giant I became the lone voice of business, small communications centre line always crackling, and she was multinational companies, like speaking out against corruption, but in February monitoring strategic individuals. harassed at airports by State Security McKinsey which paid bribes. Much the origins of it was self-protection.” The City Press said his tasks ladies who “did not even pretend to of my knowledge came from Gupta included listening to conversations, b e c u s t o m s”. Leaks and my awareness of Gupta Listen to the full interview summarising transcripts, and Wierzycka said she is happy to Leaks. I became a target – and I Elon Musk's reporting real-time locations of testify about the issue. “Let’s see wasn’t alone. Angry SAs speak out over Starlink will people under surveillance. where this goes, but it could get Let me just be clear. I wasn’t alone illegal Zuma spying saga – He also had to write reports based interesting,” she said. in this. I became a target for state ‘scary stuff’ be in SA in 2022 Subscribe here for your weekly BizNewsDigest Subscribe now 2 | SATURDAY 17 APRIL 2021 WWW.BIZNEWS.COM NEWS Taking a stand against citizen abuse

oor service delivery from government is something that every South DOWNLOAD THE FREE African has battled with. Millions BIZNEWS.COM APP Pof impoverished citizens sit without water, electricity, proper schooling and housing while corrupt officials loot and plunder. Other problems, like crumbling road networks, don’t only damage vehicles, but endanger lives too. After waiting for BN local government to do something about the potholes in Roodepoort, the local community has decided to take action themselves – fixing potholes and doling out upgrades. Community member Dave Click on the links below to Baxter and Amy-Claire Morton of the IRR download your own free joined the BizNews Power Hour to discuss BizNews.com App this uplifting story of active citizenry. – Jarryd Neves the subcontractors do. It’s a matter of 'okay, and the crime that was taking place from this the hole is filled. Tough luck. It’s no use filling park into adjacent households. We devised a Dave Baxter on the Panorama Residents a pothole if it’s not filled properly.” locking mechanism onto the gates to the park, Association’s involvement in fixing potholes and we now lock them at 18:00 in the evening “We report them to the council and nothing Baxter on the decision to repair potholes in and unlock them at 6:00 in the morning.” gets done. We get it escalated and it gets lost the area in the system. We just took it upon ourselves “It’s not all we do. We are starting to clear the Amy-Claire Morton on #StopCitizenAbuse – one of our local security companies assisted drains – the curbs of the road – because they “We’re running a campaign called us – and we bought close to a ton of tar. We sometimes cut the grass on the pavement, #StopCitizenAbuse and we focus on all because that’s really the point for us – to started filling potholes and we didn’t even do but they do not clear the flow to the drainage instances of citizen abuse – which we term motivate people to rise above citizen abuse a tenth of the neighbourhood that needed points. That is our next project – to start as being stealing from taxpayers, wasting and not just endure it. doing.” clearing that up – because we have trees money and resources intended for upliftment We were looking for a positive story and growing between the curb and the tar on of community, physical abuse of citizens – just we found this article about Dave and the Baxter on the council’s reaction to residents busy arterials.” any abuse, even crippling taxation. Panorama Residents Association. It’s really taking things into their own hands We do a lot of reporting on the issues in the incredible what they’ve done; potholes are “They arrived the next day and continued. Baxter on why the Residents Association has country. We actually wrote a memorandum, really just the tip of the iceberg. They’ve really The strange thing is that the potholes the decided to do this which we presented to the presidency – and transformed their community.” council fixed have already opened up again, “[Because the council] is not doing it. We we’re still waiting for a response. We were whereas the ones we fixed are still closed. I got permission from city parks to lock the looking for a more positive story about how don’t think there’s any supervision over what parks up because of the excessive use of drugs people can stand up against citizen abuse, Listen to the full interview The real purpose of land EWC – Anthea Jeffery

Instead, South Africans will be turned into tenants of the state: Said Mr Shivambu: “Land could be repossessed he thought of land expropriation obliged to pay rent for what (in many cases) they used to own – and by the state in the same manner as mineral and without compensation is keeping vulnerable to summary eviction at bureaucratic whim to make water had been under the MPRDA and the many South Africans awake at night. [National] Water Act of 1998. If the approach TMyriad experts have warned against the way for ANC luminaries and other favoured cadres. was to expropriate small parcels of land, piece dangers of land expropriation, with the by piece, every expropriation attempt would fear of international disinvestment being be met with litigation. The courts would be a possibility. Not only will it discourage By Dr Anthea Jeffery ‘swamped’.” much-needed investment into South Africa Last week, the Ad Hoc Committee responsible By contrast, “state custodianship would involve and stall the economy, but it has many South for drafting an expropriation-without- a more ‘dependable’ process” and provide “a Africans worried about what will happen to compensation constitutional amendment more sustainable approach to securing land their homes and other assets. In an earlier bill (the EWC Bill) invited three ministers, redistribution”. He asked Mr Mantashe, with interview with BizNews, financial expert including Minister of Mineral Resources and his experience of custodianship under the Dawn Ridler explained why going forward Energy , to put forward their MPRDA, for his perspective. with this will severely affect the economy. comments on its draft to date. To which Mr Mantashe answered that “Land or property ownership – or the rights the MPRDA was an important example of attached to property ownership – is very Custodianship without compensation “restorative legislation”. valued, in capitalist societies particularly. EFF deputy president used I just worry that we’re shooting ourselves the opportunity to urge once again that “the Read the full article here in the foot.” Anthea Jeffery outlines the real state be made custodian of all of South Africa’s Dr Anthea Jeffery is the Head of Policy purpose behind EWC and the Expropriation land’, so that the government could then Research at the IRR. Photo published Is land reform a priority for black Bill. – Jarryd Neves ‘redistribute it equitably”. courtesy of The Daily Friend South Africans? – Dr Anthea Jeffery 3 | SATURDAY 17 APRIL 2021 WWW.BIZNEWS.COM SA INVESTING Explosive growth for Capitec IN SHORT Zuma’s bid for state to pay his legal fees rejected After an early knock by Covid-19 containment measures, JSE-listed Capitec reported a dramatic SA’s second-highest court rejected an appeal by Jacob Zuma aimed at improvement in headline earnings to just under R4bn for the second six months to the end of getting the state to pay his costs in a graft case, the latest in a string of February. Its headline earnings fell for the year by 27% overall, but the bank has joined peers legal defeats for the former president. Zuma, who ruled the country FirstRand and Standard Bank in resuming dividend payments. Capitec is now South Africa’s for almost nine scandal-marred years, stands accused of taking bribes largest bank in terms of customer numbers. In this interview with Jackie Cameron of BizNews, from arms dealers in the 1990s and is due to go on trial on May 17. CEO Gerrie Fourie shares why the bank reached a tipping point towards exponential growth and what’s next for Capitec as it continues to develop a strategy to scale up. He shares insights on how his team worked on strategy during lockdown, and provides hints on how Capitec plans Mnangagwa to deal with financial sector ‘sharks’ to eat into the market share of other business banks, including dramatic changes to service and Zimbabwean President Emmerson Mnangagwa vowed to take unspecified action against companies in the financial services industry digital methods. – Jackie Cameron that he accused of profiteering. “There are sharks in the financial sector,” Mnangagwa was quoted as saying by government spokesman Nick Mangwana on Twitter. “We now know who they are. We are dealing with them.” Gerrie Fourie on the exponential growth of Capitec “I think a very important thing – and we actually discussed it at our South Africa halts rollout of J&J vaccine board meeting – is a big thing on South Africa has halted the rollout of Johnson & Johnson vaccines after focus, an ability to say no, because health agencies in the US recommended its suspension. Six women it’s quite easy to say yes to everything between the ages of 18 and 48 were found to have the blood clotting side – but what are the real client needs? effects, according to the US Centres for Disease Control and Prevention To really focus on two or three and Food and Drug Administration. things that make a difference. Then execution, because it’s easy to talk strategy, but it’s the execution part. established. When people stopped On the shift towards the higher end Shoprite plans to sell its Nigerian division How do you deliver and what is the saying, ‘Capitec who?’ We always of the market Shoprite plans to sell its Nigerian division to a local property group, client really experiencing? said it’s going to take 10 to 15 years “I think it’s a misconception in the according to a person familiar with the matter, as Africa’s largest I think what is very important is and I think it was probably about 12- market. It’s like when we started and food retailer pulls back from the continent’s most populous country. to measure. Everyone says service 13 years where it actually changed. we defined our business plan in the Regulatory approval for Persianas Group to buy the Shoprite unit is is important, but what is service? In People were accepting the brand as early 2000s, we said we want to bank expected by the end of April, said the person, asking not to be identified our case, we define it as side-by-side a fully fledged bank, not a micro 96-97% of all South Africans. It’s just because the information isn’t yet public. consulting. Our consultants and our lender anymore.” that top-end that really is looking for client looks at the same screen and very specialised services. We leave sees what has been entered. We’re On talk of Capitec moving into the that to your specialised banking measuring every single screen so we fintech space services. It was just a strategy. We Sasol, Toyota team up for green hydrogen project can understand when a consultant “We don’t see it as a fintech started off first in the rural areas and Along with partner Toyota Motor Corp., it intends to develop a pilot is standing still for a long period at company. We see it as a financial then went into the urban areas and project – using a key highway such as the N3 running between Durban a particular screen. It’s that detailed services company. You’ll see in we started at the lower income and and Johannesburg – for heavy-duty, long-haul vehicles powered by execution that we focus on.” our branding, we’ve actually taken moved up into the higher income. hydrogen, Sasol said in a statement. Toyota expects to introduce a ‘bank’ away. But it’s actually offering So from day one, the plan was to prototype truck, currently being developed in Japan, as soon as it’s On a tipping point where the ground the financial services to the client bank all South Africans.” available. shifted for Capitec as a business to understand their financial well- “Probably when the brand was being. That is the ‘why’ in our lives.” Listen to the full interview Visit BizNews.com for the latest business and finance news Kooyman on Absa money market fund closure

By Jarryd Neves While Absa declined to com- an Absa guarantee, going to ours clients won’t think they’re getting ment, banking analyst Kokkie and other banks via this money a bank guarantee.” Kooyman weighed in on the market fund. Rather have them ne of South Africa’s matter, saying the announcement put their deposits directly with Listen to the full interview largest commercial came as a surprise: us.’ So what Absa is doing is banks, Absa Group “It has been around and was closing the fund and giving them Read also: OLimited, announced yesterday initiated many years ago due the option to either be paid out, Global banking expert Kokkie that it will be closing its money to competitive pressures. But it or the money to be deposited into Kooyman expects sector to seems – if one reads what they’re an Absa account.” market fund. The fund – which bounce back in 2021 reportedly is worth around R80bn saying – that their concern is The executive director and port- – will be closed down, with Absa retail clients have started associ- folio manager of Denker Capital stating that most investors and ating the bank name with a guar- also mentioned that Absa faces a clients may have had the wrong antee. One must remember that a risk, with retail clients potentially idea about the workings of the money market fund in the bank’s taking their business to another money market fund. name means that your asset money market fund. “I used to be an executive at Absa Kokkie Kooyman is the executive management arm is gathering, “It’s going to be very interesting and I remember very clearly why director and portfolio manager at effectively, deposits which it then to see how other banks respond we did the money market fund Denker Capital. spreads amongst other banks – to this. Standard Bank, for – that was because our margins and you get a share of it. instance, renamed their mon- were getting hammered. As a cause margins are being ham- If you think about it that way, ey market from Standard Bank consequence, we had to do it. We mered – they are unwinding it it’s actually a clever way of Money Market to Stanlib Money were losing banking deposits to and saying they won’t have it any saying, ‘look we don’t want retail Market. They haven’t got that money market funds. Now – be- longer,” remarked Alec Hogg. deposits that think they’re getting direct bank name connection, so 4 | SATURDAY 17 APRIL 2021 WWW.BIZNEWS.COM BIZNEWS POWER HOUR Cartrack’s ‘complicated transition’ to Nasdaq

hris Logan joined the BizNews Power It brought in some new investors at US$28 Hour to unpack Cartrack’s listing on a share, which equates to R42 – the R42 is the Nasdaq. Logan has invested in quite important. Cthe company for quite a long time, making Currently, we sit with Karooooo – being him well-placed to explain the listing. The the holding company of Cartrack – listed company provides tracking devices for on Nasdaq, and Cartrack still listed on the vehicles for fleet tracking or recovering JSE. Now, the mechanism: it’s got a rein- stolen vehicles. “In many ways, it’s been a vestment option whereby Cartrack share- misunderstood share on the JSE. Ownership holders will be allowed to reinvest into Ka- by South Africans has declined consistently. rooooo, being the Nasdaq-listed company. Foreign investors who appreciated the That’s where the complication lies. It’s my growth potential have bought up most of understanding the Reserve Bank insisted the free float. It’s eventually culminated that there was a buyout of all the Cartrack in Cartrack moving its primary listing to shareholders by Karooooo at R42. Nasdaq.” Logan explains the complicated But then Karooooo has given those transition over to Nasdaq. – Jarryd Neves Cartrack shareholders the right to reinvest that R42 into Karooooo shares at $28 – the Chris Logan on Cartrack In many ways it’s been a misunderstood On the Cartrack Nasdaq listing same price that new investors came into “It’s a company I’ve been invested in for share on the JSE. Ownership by South “We have Cartrack and 68% of the com- Karooooo on Nasdaq. So it’s quite compli- a long time, so that’s the reason why I un- Africans has declined consistently. Foreign pany is owned by its founder, Zak Calisto. cated.” derstand the quite complicated factors that investors – who appreciated the growth He owns those shares through a company Listen to the full interview have occurred with the various listings. potential – have bought up most of the free called Karooooo Ltd. As this mechanism to [The company has] just quietly got on with float. It’s eventually culminated in Cartrack relocate to Nasdaq, Karooooo has now list- The JSE needs to innovate as delisting its business growing at a phenomenal rate. moving its primary listing to the Nasdaq.” ed on Nasdaq. It listed there on April 1st. flurry continues

Click here to catch the live stream of the BizNews BizNews Power Hour Power Hour, weekdays from 5:30 - 6:30pm.

BizNews Stefano Marani, the CEO of Renergen, joined the BizNews Power Hour with Alec Hogg Power to discuss, among other topics, his view on Total, the Renergen share Hour price value and a cautionary announcement. he BizNews Power Hour, hosted by Alec Hogg, airs weeknights at 5:30 – 6:30pm on Cape Town’s Fine Music Radio and is livestreamed worldwide. Here are some Tof this week’s top interviews for your listening pleasure. BizNews Satrix CEO Helena Conradie joined Alec Hogg on the BizNews Power Capitec is now South Africa’s largest bank in terms of customer numbers. Power Hour to share her views on cryptocurrency as an asset or currency. Her In this interview with Jackie Cameron of BizNews, CEO Gerrie Fourie BizNews Hour response to Absa closing its money market fund? Conradie said that shares why the bank reached a tipping point towards exponential Power Satrix will definitely not close their money market. Hour growth and what’s next for Capitec as it continues to develop a strategy to scale up. He shares insights on how his team worked on strategy during lockdown, and provides hints on how Capitec plans to eat into the market share of other business banks, including dramatic changes to service and digital methods. Kokkie Kooyman and Alec Hogg unpacked Absa's decision to close its BizNews money market fund. While Absa chose not to join the BizNews Power Power Hour, banking analyst Kooyman shares his thoughts on this move After waiting for local government to do something about the potholes BizNews Hour by Absa. On the upcoming Capitec results, Kooyman commented, in Roodepoort, the local community has decided to take action Power “I think the full-year results will be better than the half-year results, themselves - fixing potholes and doling out upgrades. Community Hour because the half-year had to make quite large provisions and the need member Dave Baxter and Amy-Claire Morton of the IRR joined the for that would have fallen away.” BizNews Power Hour to discuss this uplifting story of active citizenry. 5 | SATURDAY 17 APRIL 2021 WWW.BIZNEWS.COM PERSONAL FINANCE Satrix CEO on Absa money market fund

atrix CEO Helena Conradie joined a year old as a business. We started talking On the Satrix Money Market fund Alec Hogg on the BizNews Power Hour to them in June and we liked what we saw. “[We will] definitely not [close our fund to share her views on cryptocurrency It’s a shared ethos of the common values of down]. This caught us by surprise as well Sas an asset or currency. Her response to Absa access – democratising investment [and] (news of Absa closing their Money Market closing its money market fund? Conradie financial inclusion. fund) but our Money Market fund is actu- said that Satrix will definitely not close their We saw that immediately in this business ally part of what we call the Access Range. money market fund. as well. It was a leap of faith, but three So, the Access Range is four different – months later, we launched SatrixNOW, almost like a starter pack – where you have Helena Conradie on the possibility of a which is a partnership between EasyEqui- a money market fund, a local component cryptocurrency ETF ties and us. After that, we never looked (the Satrix 40), an international component “You never know – I’ll leave it there. It’s a back. Sanlam then went to acquire a 30% (Global MSCI World) and then a balanced very interesting topic, whether you call it stake in EasyEquities in 2017. So, very fund. a currency or asset. I’m sure all of us have much a strategic commitment – not only a We see it as crucial. It’s almost a parking read as much as we can about it. So let’s partnership. space as well. If you think that you want leave it as open as that.” Remember, we launched our Satrix In- to move your money out of MSCI and you vestment Plan in 2006 but at the beginning want to investigate other options, this is the On the partnership with EasyEquities of 2020, in March – the weekend before way to go. So we will definitely not close it “First of all, I want to congratulate Charles lockdown – we moved all our clients from down. I think it’s a very important part of and the team [at EasyEquities]. I think the Investment Plan (about 50,000 clients) your total portfolio.” they’ve achieved excellent results and Satrix CEO Helena Conradie. to EasyEquities. Now, we have only one it’s well deserved. I think it’s an exciting online investment platform and that is Sa- example of when there’s a shared vision, short time. We saw them present at the trixNOW. We’re very proud of our partner- Listen to full interview on Spotify how magic can really happen within a very conference in June 2015. They weren’t even ship with EasyEquities.”

The magic of compound interest explained

Budding stock market investor and BizNews journalist Jarryd Neves sends out would be worth R8,053 under the com- a lower deduction will reflect on your pays- an invitation to anyone who wants to ask questions about share investing – but pound interest scenario. By contrast, under lip, along with a higher amount of income is too embarrassed to ask. Write to [email protected] and tune in for his the simple interest scenario, your investment tax. SARS allows you to claim back any regular Monday column: On the Money. would be worth only R7,500. Likewise, after RA contribution you made with after-tax 40 years, your investment would be worth income, however this only happens at the R226,296 under the compound interest sce- end of the tax year when you complete ON THE MONEY nario as opposed to only R25,000 under the your tax return. So you lose the time value simple interest scenario. Obviously, had you of those rands that are stuck with SARS By Jarryd Neves decided to put your money under the mat- until they pay you the refund. All the best. tress, it would have remained at R5,000.” **Johan Steyn, CFA is a lecturer in In- Last week, I asked you to send me your vestment Management from the Depart- f, like me, you’re a beginner investor, finance and investment queries. Here, ment of Business Management at Stel- you’ve undoubtedly heard the term Johan Steyn shares his expert advice by lenbosch University. He holds a Masters ‘compound interest’ being hurled about. providing answers to your questions. in Investment Management and has a IWe all know what interest is, right? Nikesh asked, background in Fund Management. Interest – as we learnt in EMS lessons and Is it better to go with an RA offered by economics classes – is the amount of mon- your employee or is it wiser to take that ey that a lender (such as a bank) receives money and long-term invest yourself? for lending out money. Essentially, interest Johan answers, can be seen as the price you pay for the This is a question that many employees privilege of being able to borrow. the rate at which you earn interest.” ask themselves. The answer, unsurpris- Similarly, you can also gain interest by in- Okay, so it allows me to grow my money. But ingly, is that it depends. It depends on the vesting your money in shares or simply by how? type of pension fund your employer offers. leaving it in the bank. In the same way that This is where it gets interesting. If you Typically, employees can choose different you pay interest to lend money, the bank – invest R10,000 (at 5% compound interest underlying funds or options aligned with or a borrower – pays you interest in return. pa) you will have earned R500 in interest their risk tolerance. For example, you have This is because banks use your money to after 12 months. This will bring your total to choose between a conservative, moder- offer loans and lend people money to buy amount up to R10,500. As the second ate, or aggressive portfolio. The underlying things like homes and cars. year passes, your investment increases to asset allocation between these options So what is compound interest, then? R11,025. This demonstrates the power of would differ. There are, however, some While regular interest is worked out using compound interest in a simple way. employers who do not provide alternatives the original amount, compound interest The benefits are clear to see. How do I make and only have one fund that they contrib- takes both the initial amount and the accu- this work for my future? ute to on behalf of employees. In this case mulated interest. This is described by most Future is the key word. The fruits of it would be a idea to diversify your financial experts as ‘interest on interest’. compound interest are sweetest over long retirement savings across a number of And why is this important, you ask? periods of time. Former head of public managers. Quite simply, compound interest allows sector and corporate consulting at Liberty History has shown us that no investment you to grow your money much faster be- Corporate, Mathias Sithole, told BizNews manager or investment style outperforms cause the interest is calculated on both the how it works over prolonged periods of consistently, therefore a diversified ap- amassed interest and initial outlay. time: proach tends to produce the best outcome In an article published on BizNews, Afri- “For example, assuming you can earn in- over the long term. Keep in mind that if can Bank described it as a ‘snowball effect’. terest of 10% per annum on an investment you do choose to make a lower contribu- “As the interest paid out grows, so too does of R5,000, after five years, your investment tion to your employer-linked pension, then 6 | SATURDAY 17 APRIL 2021 WWW.BIZNEWS.COM GOOD HOPE 80-year-old surgeon breaks another record

[is] the prevailing wind in summer in Cape “I believe my record still stands [as the oldest r Otto Thaning, a heart surgeon Town is the South Easter. It tends to blow person to swim across the English Channel]. who trained under Chris Barnard, the warm water out of Table Bay and it gets I must say, I’m also one of these people that is used to swimming long distances replaced by cold, deeper water. The exact doesn’t swim in order to do a record. It’s nice Din icy waters. It is not only the waters around opposite happens on the other side of the to be told afterwards that I was the oldest man Cape Town that he tackles; Dr Thaning still peninsula where in summer, the temperatures to have succeeded – but it’s not the motivating holds a record he set in 2014 as the oldest are slightly reversed. There’s usually a four factor. human to have swum across the English degree difference between Table Bay – where I had swum the English Channel about 20 channel. Now, he has set another record Robben Island is – and the False Bay, which years previous to that, in 1994. I was 53 at by becoming the oldest person to swim is on the other side.” the time and I had a very good swim. They from Robben Island to Bloubergstrand. then told me that was one of the fastest swims Paced by Martin Goodman and supported On turning 80 of a person over 50 – which stayed for quite by members of the Cape Long Distance “I don’t count the numbers and I don’t count a while. Again, it wasn’t the intention. The Swimming Association (including veteran the years. I try and keep my physical status as intention was to swim when the conditions long-distance swimmer Lewis Pugh), Dr good as possible. I do a lot of physical training were good, the people and support were even Thaning crossed the 7.9km from Robben Dr Otto Thaning is the oldest person to – mainly swimming – and I’m very active in better, and I wasn’t in a bad state. I’ve been Island, across Table Bay, in two hours and successfully swim across the English Channel. everything that I do. very privileged in that regard.” 52 minutes. Dr Thaning toldBizNews about I think I have been genetically lucky. I’m a his latest record and shared some of his and facilities. non-smoker, I’m not overweight, I don’t drink On the challenges facing swimmers crossing secrets to a long, healthy life and career. – The straight line distance for that swim is alcohol because I get sick from it. I believe the English Channel Linda van Tilburg 7.4km. If you do the other swim – which is in exercise and because of my profession, I “It’s the busiest channel in the world. As a from there to Cape Town itself, it’s longer – also look at, very carefully, the things that are result of that, there are very strict rules as to Dr Otto Thaning on the Robben Island swim it’s about 11.25km. The last one that you can relevant to cardiac health. where you can go. It’s very much like drifting “The initial part of that swim is difficult do is to swim a complete circumference of If you do all those things in moderation – not across a very busy airport in a small airplane. because you have to swim through a fairly that island. That makes it probably nearer to in excess – I think you’re basically sharpening It’s very regulated. You can only do that with dense kelp forest of about 100 metres, maybe 14km. I’ve done all three of them.” the pencil. But ultimately, your actual life span the care that they give you, to the pilot of the 200, and then you get out to open water. There is determined by things that are greater than boat that’s helping you, from the Calais control you are swimming in a northerly direction On what the conditions were like us. But you can certainly change it if you and from the Dover control. The swimmer towards Blouberg – which is on the opposite “It’s always cold because it’s the Atlantic. It abuse yourself, add too much weight, don’t basically doesn’t have to bother about that.” side of Table Bay. It’s a suburb of Cape Town does change with the winds of the season. eat properly, and don’t exercise.” and there’s quite a lot of development. They It doesn’t get much warmer in summer. In Listen to the full interview have a very nice safety system with lifesavers fact, it gets a bit colder. The reason for that On swimming across the English Channel Robots aren’t coming for your job just yet outh Africa is the most industrialised certainly shared his view. It reminded me economy on the continent. of a popular movie that came out in the Manufacturing is the country’s fourth- 1960s, in the midst of the Cold War, with Slargest industry, contributing 14% to the the title “The Russians are Coming the country’s GDP. It’s easy to see why some Russians are Coming”. There was a sense South Africans believe that automation of irrational panic, as the consensus in my and robots will cause job losses. With audience seemed to be that “The Robots unemployment at a record high of 32.5% are Coming the Robots are coming”. My at the end of last year, South Africans were talk became a lively debate on the theme of more concerned about losing their jobs, robots and jobs. than Covid-19. Barry Dwolatzky discusses An ‘Industrial Revolution’ implies a why he believes most people will remain disruption in the way things are done. In employed during the Fourth Industrial the 18th Century, steam power replaced Revolution, even as disruption changes the animal and human power. Handloom face of industry. This article first appeared operators were replaced by machines. on FirstRand Perspectives. – Melani Nathan In the early 1900s, electricity and mass production led to craft workers becoming By Barry Dwolatzky since I’m certainly not responsible for the to an audience. When the man in the front all but redundant. Digital computers in When the short stocky man in the front Fourth Industrial Revolution – although row raised his hand, I paused and smiled, the late 20th Century automated repetitive row started to shout at me, I was horrified. I might have made some minor contribu- giving him space to interject, which he and tedious office tasks, leading to a loss He waved his hands as he growled in a tions here and there. Nor do I own a single did, loudly and clearly! of jobs. Each of these previous Industrial deep voice. He blamed me for “this Fourth robot! From then on, my presentation moved Revolutions resulted, however, in a net Industrial Revolution”. He glared angrily My talk was on “The Fourth Industrial off in an unplanned direction. Several gain of jobs, rather than a loss. and said, “you and your robots are stealing Revolution”, or 4IR, and I’m the kind of other people spoke. While they were less Read the full article here my job!” I thought this was all a bit unfair person who loves interaction when I talk confrontational and far more polite, they 7 | SATURDAY 17 APRIL 2021 WWW.BIZNEWS.COM WEALTH ADVISORS Gain managed offshore exposure with ETFs

Taking a 10-year view to June 2020, the fund doesn’t always make sense. Outper- Content by Overberg Asset Management report indicates an active manager success formance occurs when a skilled manager rate of 25% in almost two-thirds of the can move between asset classes, countries, categories surveyed. The report further and currencies. A flexible mandate over- hotly contested debate amongst breaks down the active manager success comes the limitation that a fixed mandate investment professionals and retail rates into regions. For emerging market imposes. Overberg predominantly con- investors is whether one should and European (ex-UK) active managers, structs its clients’ global portfolios around Amake use of an active portfolio manager less than a third survived and outper- Investment Companies (IC) that are listed to manage your investment portfolio or formed the average passive fund in the on the London Stock Exchange. However, rather go it alone by investing in passively same category over 10 years. UK active in certain instances, ETFs can play a help- managed Exchange Traded Funds (ETFs). managers performed slightly better with ful part in achieving outperformance. Active portfolio managers argue that a 35% success rate. Success rates amongst The growing number of ETFs on offer in by investing via an ETF, one can never large-cap US, Japanese, French, German, South Africa, thanks to innovative compa- outperform the market index and that their and Swiss managers ranged between 5.6% nies such as Sygnia, Ashburton, and Satrix, skills and research will provide consistent and 28.3%. have made it possible for South African market outperformance. Proponents of All of Overberg Asset Management’s rand-based investors to get the best from ETFs, on the other hand, argue that on Kirk Swart is Regional Wealth Manager and actively managed global portfolios out- both passive and active management – the average, active portfolio managers do not Director of Overberg Asset Management. performed their respective global bench- best of both worlds indeed. It has become outperform the market index, and paying marks over one-, three-, five- and 10-year increasingly possible to design an active- the manager for the underperformance on European fixed income fund managers periods. This remarkable and consistent ly managed investment portfolio based top of it is not worth it. beat their passive peers in the first half outperformance can be attributed to the on ETFs that has exposure to offshore According to the latest Morningstar of 2020. Actively managed equity funds fact that asset allocation is the single big- equities, bonds, commodities, preference European Active/Passive Barometer, the typically hold more cash than their passive gest contributor to outperformance. ETFs shares, property, and many more asset early 2020 volatility that was caused by the peers, which helped to soften the dou- are single asset class investments in nature, classes. These asset classes can be obtained Coronavirus pandemic was the perfect ble-digit drawdowns that were seen in the and most mutual funds have fixed, rather across various countries such as, but not opportunity for active fund managers to first quarter of 2020. This partially explains than flexible mandates. To a certain extent, limited to, Japan, Europe, China, the deliver alpha, turning around the last 10 why active equity fund managers outper- the argument between active and passive United States, Emerging Markets, and the years of underperforming their passive formed active fixed income managers. management is a moot point. Comparing United Kingdom. peers. Data from the report indicates that Fixed income managers were also hurt by an active equity fund with a passive equity about half of all active European equity taking on more credit than their equity index, or similarly, an active fixed-in- Read the full article here fund managers and one-third of active counterparts. come fund with a passive fixed-income

FOMO could lead to bad investment decisions

Brought to you by Brenthurst Wealth looked at the performance of Health Care in technology, as these have delivered superior 2014 and 2015, you would’ve felt some FOMO returns compared to multi-asset funds and if you missed out, but switching your portfolio value-style stocks. I caution against making to this sector would have had disastrous this comparison as these all serve as important FOMO has always been there consequences as Health Care was the only components of a long-term portfolio, rather sector to record a negative return in 2016. than stand-alone investments. nvestors like to compare their portfolios Investors must remember that bonds, with others and not just those of friends Diversification reduces risk of picking the property, and cash all serve a purpose when and family. No, investors like to compare worst-performing sector included alongside equity in a portfolio. In Itheir portfolio performance to those who my experience, these asset classes hold up Picking the top-performing sector each year achieved the best possible returns. It is is a super power yet to be discovered in any better than equity during times of economic only natural and if you start looking at investor, no matter how good or legendary. crises, which happens to be the most likely what you ‘could’ve made’ (even if it is that Diversifying portfolios by allocating across time investors need to dip into their funds. one in a 1,000 chance), the fear of missing sectors is the best strategy. The difference Being forced to sell when the market is at a out (FOMO) is a sly devil that could lead between the best and worst-performing sector low must be avoided. Including value-style to bad investment decisions. It’s not a new in the market is usually around 30% and could stocks within the equity portion of a portfolio phenomenon, even if the term ‘FOMO’ only even be as big as 83%, like we saw in 2020. adds another layer of protection in the event recently got popularised. of a downturn and it is one factor that has Let’s take smartphones as an example. When Large returns concentrated in certain sectors started to play out in 2021. Apple released its first iPhone in June 2007, fuel FOMO A value revival the company’s share price gained 37.20% Investors who were not invested in global Value stocks are recovering following years of in the following year. Investors knew that equities over the past few years and in Brian Butchart, CFP®, is the Managing particular, Mega Cap Technology and underperformance that was magnified during smartphones were the next big thing, but Apple Director of Brenthurst Wealth and is based the Covid-19 crash. This comes off the back of wasn’t the company everyone was chasing. Biotechnology sectors, lost out on stellar in Cape Town. growth and one of the fastest and strongest extremely high valuations in growth sectors, No, that mantel belonged to Blackberry, which recoveries in market history, post the Covid-19 in part due to record low interest rates that returned 75.36% over the same period, more previous year, may not provide the same volatility of March last year. Technology, investors no longer find palatable. The top than double Apple’s performance. Blackberry fortune the next year. The same thing can Communication Services, and Health Care three best performing sectors in 2020 all find made great smartphones and was dominating be said about sectors, asset classes, and funds. led the recovery as lockdowns, unprecedented themselves in the bottom half in the first the market at one point, but there is a reason stimulus, dovish monetary policy, and quarter of 2021. Active fund managers with why investments carry a disclaimer of ‘past Sectors rank differently in performance each historical low interest rates pushed valuations a value bias benefitted from this. performance is not necessarily an indicator year in these sectors to highs never experienced The sector rotation from growth into value of future performance’. From July 2008 to On closer inspection, you will often find a before. The staggering difference in returns is has happened spectacularly fast. By March where we are now in 2021, Apple’s share price top-performing sector in one year fall down even more apparent when compared to other 2021, value regained the ground it lost during gained an astonishing 2,383%. In comparison, the rankings the very next year. To illustrate asset classes like bonds and property. the pandemic. Blackberry’s share price is down 92%. Chasing this, we followed Health Care’s performance Investors often ask their wealth advisors Read the full article here something that delivered a good return the each year. If you stood at the start of 2016 and about switching into growth-style sectors, like 8 | SATURDAY 17 APRIL 2021 WWW.BIZNEWS.COM MOTORING Merc’s swoopy CLS receives styling refresh

By Jarryd Neves The front bumper has been redesigned, now brown walnut or high-gloss grey wood The 320kW CLS 53 AMG remains unchanged mimicking the larger S-Class. Two trim levels trims are available to add a further feeling performance-wise, with a few styling tweaks – entry-level Avantgarde and AMG Line – of sophistication to the interior. bringing it up to date. erc’s slinky four-door coupé has are available. Opting for the AMG package Mercedes-Benz South Africa is yet to reveal received a raft of styling updates, adds myriad styling add-ons, including a front any details about which engines are to be The 320kW super saloon has also benefitted bringing the stylish luxury car splitter finished in silver chrome, an AMG offered, although the pre-facelift CLS was from the nip and tuck, gaining a redesigned Min line with the Three-Pointed Star’s other lip spoiler, and sporty air intakes. available with just two powertrains locally; front end. The sporty AMG bumper freshens offerings. CLS 400d and CLS 53 AMG. up the look, while the AMG signature grille The CLS 400d is powered by a fabulous with the vertical bars ensures no one will turbodiesel, producing 243kW and 700Nm mistake the CLS 53 for a common or garden of torque. The straight-six, three-litre motor Mercedes. is still capable of achieving a claimed fuel The Mercedes-Benz CLS has always been consumption figure of just 6L/100km. The favoured by discerning buyers looking to CLS 53 is motivated by a sonorous three- stand out from the executive saloon crowd. litre, six-cylinder turbopetrol, capable of When launched in 2004, the Merc had the 0-100km/h in 4.5 seconds. marketplace all to itself. Now though, Audi’s massively capable A7, BMW’s polished 8 Series Gran Coupé and even Porsche’s Panamera all A new steering wheel design, revised trim vie for a slice of the increasingly shrinking It’s not just aesthetic revisions, though. options, and new leather choices are part pie. This facelift should give the talented CLS The interior has also been the beneficiary of the interior update. a chance in a class of overachievers. of some tweaks – a new steering wheel Read also: design, extended leather options, and new While the basic architecture of the sumptuous trim finishes provide customers more cabin remains, two new colour combinations Mercedes-Benz GLC300d and GLE450: A personalisation options. are now available for the leather trim. Neva bag of tricks The exterior changes are subtle but give the grey/magma grey and sienna brown/black Bavarian brawlers: BMW M3 and M4 CLS-Class a sportier and more dynamic edge. offer buyers more choice. Open-pore now available in SA

Luxury carmaker Maserati reveals latest supercar

was more suited to crossing continents stowed with evocative sounding names – on the conditions. By Jarryd Neves than carving corners on a racetrack. Quattroporte, Levante, Ghibli – the latest And there’s nothing wrong with that. model derives its name from an amal- Maserati’s history is littered with great gamation of ‘Maserati Corse’ and ‘2020’, talian luxury carmaker Maserati has GT cars, but the MC20 has gone back hence MC20. revealed their latest supercar, the and rummaged in the performance bit of The striking supercar is powered by a MC20. The mid-engined two-seater Maserati’s lineage. The company says the twin-turbo, 3.0-litre V6 which produces Itakes Maserati back to its roots, harking MC20 is a ‘natural evolution’ of the MC12, a ferocious 463kW and 730Nm of torque. back to the MC12 of the mid-2000s. a road-going racer that shared most of its This, says Maserati, will enable the MC20 underpinnings with the Ferrari Enzo. to blast to 100km/h in just 2.9 seconds and on to a top speed of 325km/h. The butterfly doors don’t only look good but The exterior styling is just as striking as improve access to the luxuriously appointed the performance, with dramatic butter- cabin. fly-style doors adding an element of the- atre to an already dramatic design. Inside, The local arm of Maserati is yet to an- the minimalist cabin is intended to create nounce pricing or a launch date for the an environment that is driver-oriented and Italian supercar. devoid of distractions. Situated on the centre console are two Read also: If you wanted a sporting, two-door Mase- The MC20 weighs less than 1,500kg, thanks 10.25-inch screens that control the MC20’s So you’ve won the lottery? These rati, the now discontinued GranTurismo to the extensive use of carbon fibre in its various functions, with the drive-mode dream cars should fit the bill was your only option. Despite a melliflu- construction. selector positioned just below. This allows ous V8 (available in various states of tune) the driver to choose between four settings Subtle nip and tuck for Ingolstadt’s under the long bonnet, the GranTurismo While the MC20’s siblings have been be- – Wet, GT, Sport and Corsa – depending BMW M3 rival