PAGE 2 PAGE 3 PAGE 7 PERSONAL FINANCE// NEWS// INTERVIEWS// PERSONAL FINANCE// FREE LUNCH OF THE ADVISORS VILIFIED TIM NOAKES ON LCHF BEING SMART INVESTING WORLD IN SA - HEYSTEK DIET, COVID-19 WITH TAX

BizTHE RATIONAL PERSPECTIVENewsDigest WWW.BIZNEWS.COM SATURDAY 01 MAY 2021 BIZNEWSCOM Michael Lomas corruption scandal BRIEFS Amazon sales no surprise, says Paul O’Sullivan surge 44% in ichael Lomas, a former “What [he] should actually be doing, is tendering his co-operation and voluntarily the quarter to Eskom contractor, was returning to to get evidence. If you volunteer to come back and you arrested in connection end March Mwith a R745m fraud relating come of your own steam, you’re not going to sit in prison while you’re waiting for to the Eskom Kusile power the trial.” plant. Corruption buster Paul Tongaat share example. He used the proceeds of O’Sullivan joined the BizNews price dropped Power Hour to share his thoughts crime to hire lawyers that were, on the arrest. Currently, South shall we say, flexible enough to African prosecutors are seeking come and attack me. Six weeks 24% Lomas’ extradition. A UK court later, [he] was arrested and charged will soon decide whether Lomas with the corruption which we had after SENS report has a case to answer in SA, reports investigated.” on debt covenants Bloomberg. According to O’Sullivan, Trindade started a company – now known By Jarryd Neves as the Tubular Group. In 2008, he made contact with Michael Lomas, More than offering him the opportunity to 1 billion UK-based businessman Michael come on board as a consultant. Lomas was arrested last week in Lomas acted as a consultant for Covid-19 vaccines connection with a R745m fraud, a number of years. “During that relating to Eskom and the Kusile period, I suppose, there were issues have been given at Kusile – which were a mixture of Power Plant. Lomas appeared in a Private forensic investigator Paul O'Sullivan around the world Westminster court where he was engineering and contractual issues.” granted bail at £100,000, according crusader from Forensics for Justice. 1998, Michael Lomas was the CEO O’Sullivan told Alec Hogg that to Bloomberg. O’Sullivan remarked that Lomas’ at that time. Lomas ‘sorted out’ a number Ex-Eskom His arrest and consequent involvement in this corruption case of issues, including putting the court appearance is in relation was of no surprise to him, citing the Read also: company’s BEE in place which, contractor notes O’Sullivan, they did not have. to a corruption case involving a fact that the pair had spoken less than ‘If I were in Jooste’s shoes, I’d arrested in payment of R745m to a company two years ago. fly to Germany’ – life in their “[Lomas] described Trindade as a called Tubular Construction “I flew to London and met with him prisons would be far easier micro-manager. He reached a point Projects. The National Prosecuting in November 2019. He unpacked than in SA, says O’Sullivan where the people at Eskom needed R745m Authority (NPA) has requested everything for us. I don’t want to say ‘financial assistance’. Lomas got fraud case that Lomas be extradited to South anything that’s going to prejudice his The corruption fighter has had drawn into that and I think that’s Africa. However, laws dictate trial, but clearly he had a lot to say dealings with Trindade before, where he crossed the line.” that a UK court needs to decide regarding [Antonio] Trindade and remarking “it’s become the modus whether the businessman should the other people – including Abram operandi of a lot of people involved Listen to the full interview SA's powership be extradited or not. Masango.” in corruption. When they come deal to cost Joining the BizNews Power Hour O’Sullivan explains that Trindade onto my radar screen, they try to get Paul O’Sullivan: ‘I will to weigh in on the matter was Paul used to work for a company called me off their radar screen – normally NEVER rest until they R218bn O’Sullivan, the corruption busting Group Five. When he resigned in with applications for interdicts, for have seen justice’ over 20 years Subscribe here for your weekly BizNewsDigest Subscribe now - CSIR 2 | SATURDAY 01 MAY 2021 WWW.BIZNEWS.COM NEWS Advisors are vilified in SA – Magnus Heystek

he stock market has the article on BD and in tweets in the day perked up this year, sparking a following to ensure that I was seen as the DOWNLOAD THE FREE fresh wave of attack on investment main driver of this “creaking wreck”, a poor Tadvisors who have recommended offshore analogy if ever there was one. BIZNEWS.COM APP diversification. The most high profile of I therefore feel compelled to put this whole these advisors is Magnus Heystek, who debate in context. I leave readers to decide has been a household name since the 1980s for themselves. when, as an award-winning finance editor, But forgive me, as Mark Twain once said, for he introduced and developed the concept writing such a long reply as I don’t have the of demystifying personal finance to SA. time to write a short one. BN His ‘Making Money Made Simple’ is on many bookshelves, as are his other books Straw man argument on investment topics. Heystek has built It is an astonishing article in many ways, least a hugely successful investment company of all the “straw man” argument deployed, for Click on the links below to in recent decades: Brenthurst Wealth reasons I cannot understand, to the extent download your own free Management manages about R14bn of assets implying that certain financial advisors went BizNews.com App on behalf of individuals. He continues to around the country urging investors to cash in share his knowledge and insights, based on all when the rand was R19,35 to the USD and deep research, freely through his columns to take it offshore, thereby missing the 80% and appearances on radio and television Magnus Heystek upswing that followed in the year thereafter. with a view to empowering individuals to Boo-hoo, you all have eggs on your faces and make the right choices with their money. offshore advisors with egg on their face”. should be ashamed of yourselves. In this article, Heystek lifts the lid on how Now I know that columnists do not write I am not aware of any financial advisor individuals in the mainstream media and headlines, but the body of the article made it who went around publicly making such their commercial partners – dependent on very clear that Theobald is not a fan of offshore recommendations; neither did I or anyone sponsorship and fees from companies with a investing, as can be seen from the following at my company. vested interest in keeping your funds in SA – sentence: “So next time the ‘anywhere but SA’ The article fails to mention the upswing in up to the eventual dot-com crash in 2001, censor the view that offshore diversification bandwagon comes charging past, see it for equity markets all over the world during the how a diversified global portfolio can protect is necessary and promote ‘local is lekker’. what it is: a creaking wreck filled with those same period, with some offshore sectors rising wealth and protect asset values during times – Jackie Cameron who make a living selling the negative story.” more than 100% in USD terms. of great uncertainty. BizNews was quick on the draw and arranged But first some history. By Magnus Heystek a personal finance webinar on Friday the 16th I have been advising and managing offshore Click here for the full article of April, to which Dr Theobald was invited, investments ever since I started my first Earlier this month, Business Day published an but he declined to participate. advisory business way back in 1994, even Read also: article by respected columnist Stuart Theobald Nowhere in the article was I mentioned by before it was legal for South Africans to have Heystek: Investing in ‘cheap’ JSE is still with the headline, “Rocketing JSE leaves name but there were enough comments below offshore investments. I also saw, in the run- a bad idea, no matter how you slice it New SA hero Judge is a keeper

By Chuck Stephens* Capture. As history evolves into myth over they are big spenders, so Finance Minister cost budget too. But budgeting time seems long periods of time, South African folklore Tito Mboweni has closed the door to any to be unknown to the judges. The UK has Jack the Giant-Killer. Scandinavia will be filled with Tales of Zondo. He has additional funding. A vote of thanks to Deputy Chief Justice has Beowulf. Israel has King David who slew done us proud. Worse yet, our Judiciary knows nothing about Raymond Zondo. Hamba kahle, babe dragon- his tens of thousands – including Goliath. A few words come to mind as we think back Timing. They don’t realize yet that “justice slayer! The USA has Johnny Appleseed. Canada over his handling of the Zondo Commission… delayed is justice denied”. Cases keep going *Chuck Stephens is Executive Director of the has Big Joe Mufferaw. Iraq has Daniel who unrelenting… dignified… polite… tireless… on and on and on ad nauseum. Even Zondo Desmond Tutu Centre for Leadership and spent a night in the lion’s den, and Iran and courageous… soft-spoken… hard-hitting. is on his second extension – and way over writes in his own capacity Esther who saved her Jewish people from His days in the spotlight are ending soon. The destruction. Australia has Crocodile Dundee three-month extension that he was granted is and China has Jackie Chan. I think you get waning fast. Soon he will have to move from the drift? the microphone to the keyboard. His final report is due on June 30th 2021. The last big inquest report we remember was from the Seriti Commission. It lacked BizNews 360 Potgooi credibility. Everyone knew that it was cooking the books, so to speak. It has now been discredited – even set aside. Willie Seriti (met Charl Botha) was apparently for sale. His findings were eventually set aside in 2019 – it was a smoke screen to protect a shady ex-president. The Schüssler plaas die Suid-Afrikaanse Arms Deal Saga is only coming to trial this year at long last. ekonomie in perspektief But the Zondo Commission has been clean. Those same gaslighters who tainted the Seriti In ons eerste potgooi gesels ons met bekende ekonoom Mike Schüssler oor Commission now want to tarnish Zondo’s die Suid-Afrikaanse ekonomie. Ons gesprek raak aan verskeie onderwerpe. name, but no one is buying that revisionism. Onder andere skets Mike vir ons waar Suid-Afrika in die globale ekonomiese Zondo is a keeper. He is 100 percent credible. bestel inpas. Hy deel ook sy raad hoe ons as a land ons ekonomiese prestasie Deputy Chief Justice Raymond Zondo Those who question his integrity are only kan verbeter. doing so out of self-preservation. Judge Raymond Zondo is our champion. Let As usual – our Judiciary and Ombuds service there be no mistake – he will go down in are putting Quality first. That makes Justice Besoek BizNewsRadio.com om history as the commissioner who slayed State Minister Ronald Lamola happy. However, nog potgooie te luister 3 | SATURDAY 01 MAY 2021 WWW.BIZNEWS.COM INTERVIEWS Noakes on modifications IN SHORT UK impose sanctions against Gupta brothers Ajay, Atul, and Rajesh “Tony” Gupta are among 22 people from six countries who face restrictions ranging from visa bans to asset freezes to the LCHF diet after the UK expanded its sanctions regime to include corruption for the first time. The Guptas, who no longer live in South Africa, have Tim Noakes is South Africa’s best-known sports scientist. He survived a gruelling legal battle denied wrongdoing. over four years to defend his belief that a low carbohydrate, high fat diet is better for your health than a high carbohydrate, low fat diet. Noakes told BizNews about his new book, The Eat Right Revolution: Your Guide to Living a Longer, Healthier Life (co-authored with journalist Marika SA to add Sputnik, Sinopharm shots to array Sboros) and sets out some modifications to his LCHF theory – with particular insights on how SA plans to buy Russia’s Sputnik V vaccines and shots developed by women can lose weight. Insulin resistance is a key focus in this interview, too, with a large number China’s Sinopharm Group Co. Ltd as it steps up efforts to tackle the of diabetics among those who have died of Covid-19. – Jackie Cameron coronavirus. The government will order 10 million doses of each shot, says Health Minister Zweli Mkhize. “We are doing this now because we do expect the South African Health Products Regulatory Authority Tim Noakes on Covid-19, diabetes no clue about that. Where Covid to approve those vaccines.” and diet comes in, is it specifically attacks “The biggest predictor for risk of those visceral fat cells and releases Covid is what no one’s told. You’re a so-called cytokine storm from told to do X, Y and Z, but you’re those fat cells. They start to release SAA cuts jobs in plane maintenance division never told that if you got visceral fat all these inflammatory chemicals, The restructuring is unavoidable in light of reduced demand from – which is fat stored inside the gut – which then cause the fatal storm of its airline customers, SAA Technical said in a statement. While the around the intestine, but particularly inflammation that kills people in state-owned company didn’t specify how many employees would be in the liver, the pancreas, skeletal Covid-19.” affected, Derek Mans, a representative of the Solidarity union, said muscle and the adipose tissue in about 60% of a total workforce of just over 2,000 could be eliminated. the gut. People have this protruding On veganism abdomen and I think, well, that’s “So veganism – and Marika typical. Everyone over 30 has a describes that beautifully – about how the Seventh Day Adventists South Africa continues use of J&J vaccine protruding abdomen. That indicates South Africa inoculated 292,623 health workers with the single-dose Professor Tim Noakes came along in the 1930s and said that you’ve got a visceral fat. One of J&J shots under a drug trial before pausing the programme amid that meat would cause cancer the interesting points is that we’re that subcutaneous fat. It looks like concern over a link to blood clots. The programme has sufficient doses and make us sexual predators. In not told this. that subcutaneous fat is perfectly to complete vaccinating 500,000 health care workers, Minister Zweli order to get rid of those bad events, We’re only told that vaccines can safe and can be relatively healthy. Mkhize said. Vaccination sites will be increased to 95 centres across humans had to stop eating meat. help us. We’re not told that we can But it’s when you store fat in the the country. do a lot more by changing our diet. viscera – that’s in the liver, the It was a religious statement. It had It turns out that the greatest risk pancreas, skeletal muscle and also nothing to do with science. There factor for a fatal outcome, besides in the fat cells inside the abdomen never has been any science stating age, is type two diabetes. But more – that fat is totally different. What that plant-based foods are healthier Mango resumes flight as ACSA feud ends investigation shows it is actually not happens is, as that fat becomes for us than meat. That’s simply not Mango Airlines, the low cost arm of state-owned South African Airways, Type 2 diabetes. It’s a special feature more, the cells become bigger. They t r u e .” was cleared to resume flying after resolving a dispute with the country’s of Type 2 diabetes that causes fatal start to attract inflammatory cells airports operator over non-payment of fees. The carrier agreed with outcomes in Covid infections. That and those inflammatory cells are Airports Company South Africa to make a part-payment on what it specific change in the body is an active. If you have a large amount Listen to the full interview owes and commit to ways to settle the remaining debt. increase in our visceral fat content. of fat, you are in a chronically Humans store fat in two sites – inflamed state – and that’s what Guide to Tim Noakes diet – either below the skin, and we call doctors don’t understand. They have banting made simple Visit BizNews.com for the latest business and finance news

aul O’Sullivan was a speaker at the inaugural BizNews Investment Conference ormer Sygnia CEO Magda Wierzycka is in the media spotlight again, this time in March. After his presentation, the ace forensic investigator sat down with as a victim of state spying activities. In her interview with BizNews founder Alec Alec Hogg and shared his personal experiences with the icons of corruption Hogg, Wierzycka said that the harassment included her phone being tapped Pin South Africa. This conversation is a must see. Fand people following her, with the Sygnia founder eventually hiring bodyguards.

View the full video here View the full video here

South Africa’s second-highest court has This video on the lockdown captures A re introduction to 12J - an investment rejected Jacob Zuma’s appeal to get the the hardship, economic crisis, and the scheme which will be no more after June state to pay his legal costs resilience of the human spirit. 30, 2021. 4 | SATURDAY 01 MAY 2021 WWW.BIZNEWS.COM BIZNEWS POWER HOUR SAA/Mango legacy needs to be cleared out AA’s low-cost alternative, Mango cycle – whether it’s the September the 11th not only in this country, but around the Airlines, has been making headlines or the 2008 financial crisis – has resulted in world. National airlines, particularly in this week as a payment dispute between a huge drop in aircraft values. What we’re Africa, have struggled. Many have gone out Sit and ACSA saw the airline grounded. seeing now has never happened before. of business. It’s time for a rethink of what is Mango had reportedly missed payments to We’re looking at about a two thirds drop the model that works. Countries do like to the country’s airport regulator. This resulted in the cost of aircraft. That’s quite dramat- have representation in the airline industry in ACSA barring the airline from taking off ic, as [aircraft are] obviously the single for various reasons – but the model has got or landing at any of the airports it operated. biggest fixed asset in the business. What to change. I think this is the start of that Shortly afterwards, the ban was lifted, with that really means is that you don’t have to model changing.” the two parties agreeing to payment terms. take on massive debt in the industry. In Joining the BizNews Power Hour to discuss fact, we took on none at all. That drives On what he would do if in charge of SAA/ Mango’s fall from grace is Gidon Novick, down fixed costs dramatically. It just results Mango the CEO of Lift. – Jarryd Neves in flexibility, which means that we can fly “It’s difficult. So much of the legacy has when there’s demand and we don’t have to got to be cleared out. I think that’s the Lift CEO Gidon Novick on Mango fly when we think we have to fly because starting point. You’ve literally got to start “It’s an industry in massive change. The our planes are sitting on the ground. That’s from scratch as much as you can. There’s so pandemic accelerated a lot of the dynam- been quite a step change, particularly much that’s changed. There’s so much leg- ics that were happening pre-Covid – it’s On why Mango is struggling to survive in an environment where demand is so acy that gets built up over the years. There all happening very fast. With regards to “There are a few things going on. The one uncertain – and you have these waves of reaches a point in, I guess, many business Mango, at Lift we’re doing what we can to is that there’s a massive step change in the Covid-19, as well as uncertainty around the cycles where you’ve actually just got to start accommodate their passengers and just efficiency opportunity, within the airline future of business travel and tourism.” again. That becomes the best option in help out. It’s been a crazy, crazy time. The industry. Those efficiencies are driven by a terms of success.” other industry is set for a rebirth. There’s dramatic drop in the cost of aircraft, driven On SAA not being able to weather the just been so much dramatic change going by Covid. What’s happened in the past Covid-19 storm on.” three or four decades is that every major “That model has become unsustainable, Listen to the full interview

Click here to catch the live stream of the BizNews BizNews Power Hour Power Hour, weekdays from 5:30 - 6:30pm. Eddie Cross - founder of MDC - on Johann Kriegler on why Judge with Alec Hogg Zimbabwe's economy Hlophe is not untouchable The BizNews Power Hour, hosted by Alec Hogg, airs weeknights at 5:30 – 6:30pm on BizNews Last week was certainly a wild one for cryptocurrencies, with Bitcoin Cape Town’s Fine Music Radio and is livestreamed worldwide. Here are some of this Power plummeting around 20%. Marius Reitz of Luno Africa joined the Hour week’s top interviews for your listening pleasure. BizNews Power Hour to discuss the decline in Bitcoin's price. “Even after such a drop, it's hard to believe that it's still up 72% year to date.”

BizNews Marketing Manager Clive Eksteen, famously known for his BizNews time as a cricketer for the Proteas, unpacked the hubbub surrounding Power the cricket team. Minister of Sport Nathi Mthethwa informed Cricket BizNews Michael Lomas, a former Eskom contractor, was arrested in connection Hour SA of his intention to invoke Section 13 of the Sports Act. “This basically Power with a R745m fraud relating to the Eskom Kusile power plant. Paul means he's going to withdraw funding - which is not the end of the Hour O’Sullivan joined the BizNews Power Hour to share his thoughts on world for cricket - but the bigger problem is withdrawing recognition, the arrest. Currently, SA prosecutors are seeking Lomas’ extradition. meaning you cannot play as a national team.”

Joining the BizNews Power Hour was Reyburn Hendricks, the CEO of BizNews Revego Africa Energy Limited. Hendricks describes the company as Irnest Kaplan shared his insights on the recent Microsoft and Alphabet Power BizNews an investment vehicle that is a limited partner in a fund. It invests in, Power results. Host Alec Hogg also asked Kaplan whether we should be paying Hour predominantly, equity stakes in operational renewable energy projects Hour any attention to Biden's Antitrust potential enforcement against Big Tech. “I just get the sense that the US, at this point, I don't think they in Sub-Saharan Africa. He told the BizNews team how the company would cripple their top companies.” plans to fund growth. 5 | SATURDAY 01 MAY 2021 WWW.BIZNEWS.COM GOOD HOPE My Octopus Teacher brings Oscar home

ways this really is a tiny personal story that By Jarryd Neves played out in a sea forest at the very tip of Africa, but on a more universal level I hope that it provided a glimpse of a different hen filmmaker Craig Foster type of relationship between human beings decided to take a break from a and the natural world.” busy schedule, he turned to his Fair share of awards Wpassion – diving. Exploring the kelp forests The documentary, which enjoyed im- in the waters of Camps Bay, Foster soon mense success on Netflix, has won its fair found an unlikely friend lurking in the share of awards. Aside from the iconic depths of the gorgeous Cape Town coast. Oscar, My Octopus Teacher has scooped The elusive octopus intrigued the film- up over 20 awards, including a BAFTA. maker, who decided to document his In a letter to the production team, Pres- ever-growing relationship with the spe- ident Cyril Ramaphosa congratulated cial creature. In an earlier interview with those involved, writing that the film was BizNews, Foster described the film as a “life “documentary storytelling at its best, with journey”, saying that he never expected to a deeply resonant conservation message.” form such a strong bond with an animal. President Ramaphosa wasn’t the only one “The octopus is the most intelligent inver- © Image courtesy of Ross Frylinck to congratulate the team, however. Social tebrate on the planet.” media was abuzz, with congratulatory mes- A highlight of the documentary – which eral viewing public, ‘My Octopus Teacher’ While the film primarily focusses on his sages coming from all corners of the world. touched many hearts – is when the octopus has claimed a monumental win, grabbing special relationship with the octopus, “Parts of this story are universal to almost extends a tentacle toward Foster. “She can an Oscar for Best Documentary. Last year, it also showcases the sheer beauty and every person on Earth-love and friendship, also taste with her suckers, so it’s a very in response to the film’s success, he said magnificence of the kelp forest and the connection and hope,” said Ehrlich. intimate touch when an octopus touches “We had a dream of trying to get [the film] creatures that inhabit it. Co-director Pippa one,” remarked the filmmaker. out there, but this has been overwhelming. Ehrlich, who accepted the award in Los Click here to listen to an earlier Film’s success I’ve done a lot of film over the years and Angeles, said that she was “utterly over- BizNews interview with film- Now, after receiving praise from the gen- some never see the light of day.” whelmed” and remarked that “in many maker Craig Foster Taking on the struggle to save Liliesleaf

ocated in Rivonia, Liliesleaf farm in particular, the apartheid era, which was headquarters of the ANC and the Congress was bought as a safe house for anti- very defining. Living under apartheid was a alike. apartheid activists in the 1960s. It very defining period in our historical evolu- It became the nerve centre of our libera- Lserved as the secret headquarters of not tion. It framed a lot about who we are today, tion struggle. It became the heartbeat of only the ANC, but the SACP and Umkhonto good and bad, preferably bad from the point our struggle. It was from there that the of view of the subjugation of the majority of we Sizwe too. , posing as a plans to overthrow the apartheid state our population, purely because of the colour domestic worker, used it as a hideout. Now operation was discussed. It became the of their skin. almost 60 years later, despite efforts to secure place where they engaged about how to But the good part was our struggle, the funding, the site that has been turned into overthrow this insidious political system. uniqueness of our struggle and those unique a museum is in danger. CEO of Liliesleaf, And Nelson [Mandela] – who had his last individuals that drove our struggle. In its Nic Wolpe – whose father was involved in visit to Liliesleaf in 2005 – actually said totality or universalism, history is funda- the original sale of the site – is taking on the what made Liliesleaf unique was that it was mental. It’s important that we preserve his- struggle of saving this heritage site with a a place of intellectual, ideological, strategic tory, because we then will have much more military discourse and engagement. funding campaign. This comes amid reports of an appreciation of why it’s important to that several other sites linked to the anti- The raid on Liliesleaf on the 11th of July, preserve historical sites – particularly a site 1963 – which led to the Rivonia trial – apartheid movement – including some of like Liliesleaf – which played such a crucial the homes Nelson Mandela occupied – are pushed the struggle down a new trajectory. Nic Wolpe is Founder & CEO of the Liliesleaf role in our struggle for freedom, democracy falling into disrepair. Wolpe told BizNews In fact, the existence of Liliesleaf redefined Trust and equality.” about his campaign to raise R10 million and repositioned the struggle. The raid and the subsequent Rivonia trial put us on the to save Liliesleaf in the short term. – Linda mately, is the collective knowledge of our On the role of Liliesleaf in apartheid trajectory to our first democratic elections van Tilburg experiences. With particular reference to “1960 was a defining moment in our in 1994. Despite the hammer blow setback South Africa, we have a rich history that struggle. It redefined our struggle. It pushed that was suffered by the liberation move- Nic Wolpe on preserving Liliesleaf as a goes back to the Khoisan people. But in the liberation movement away from passive ment internally following the raid on Lil- heritage site many respects, the most important aspect resistance to armed struggle. In that transi- “I think within the broader context, it is of our existence has been, firstly, the three tion, Liliesleaf was purchased in 1961 as a iesleaf, its ultimate consequence, in effect, important that wherever we come from, hundred years of colonial rule. meeting place for the Communist Party. But was to push us on the road to democracy.” whichever country we are living in, we It has left its imprint on our society – most it evolved into not only the high command must preserve our history. History, ulti- of which, unfortunately, is negative – and of the newly formed military wing, but the Listen to the full interview 6 | SATURDAY 01 MAY 2021 WWW.BIZNEWS.COM SPONSORED Pearl Valley Hotel - 12J Investment Fund Choose from a range of innovative funding Content by Pearl Valley Hotel by Mantis options and Futureneers Capital From a 12J perspective the most notable differentiator of this fund is undoubtedly the selection of innovative funding mechanisms Investment overview offered by Futureneers Capital – the Section 12J VCC and fund managers. The Pearl Valley Hotel by Mantis is situated on the Jack Nicklaus Signature Pearl Valley Golf The lifestyle benefits for investors Course at the international award-winning Val Investors receive a variety of lifestyle benefits de Vie Estate just outside of Paarl in the Cape including: Winelands. 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Targeted returns - key value drivers Futureneers Capital – The Section 12J VCC & Targeted Internal Rate of Return ranges from * Modelled on a Cash Investment – IRR’s significant higher with geared funding options fund managers 20% to 35% p.a. depending on the funding (refer below). Futureneers Capital has a successful mechanism chosen by the investor. partnership history with The Pearl Valley Below a breakdown of the Key Value Drivers Hotel by Mantis, this being the 3rd tax season of a cash investment in this fund as an example. For more information on the Pearl Valley Hotel by Mantis opportunity click here. and capital raise round. 7 | SATURDAY 01 MAY 2021 WWW.BIZNEWS.COM PERSONAL FINANCE Be smart with tax: Rules changed regularly

Brought to you by Brenthurst Wealth with certain providers, have been paying Investors who may have already used or more in fees and have had enough of the maximised the above-mentioned tax-effi- words ‘’long term view’’ as over 7 years cient vehicles or who are looking to gain outh Africa has been faced with many some investor returns have been less than more offshore exposure within a tax-effi- economic and political headwinds, the tax-free benefit these structures have cient vehicle with a longer-term view and especially in the past year in the provided them when being compared to an objective of capital growth, should cer- Swake of the impact of the global Covid-19 the returns of investments that allow for tainly consider investing in an endowment. pandemic. Higher and more taxes have higher offshore allocations. Investors in With the added estate planning benefits been introduced in recent years as the these products over the age of 55 that want this adds extra tax savings. An endowment government desperately tries to balance true offshore diversification can retire from is useful for those whose marginal tax rates the books. This has led to South Africa’s them and invest the capital in a living an- are in excess of 30%, as income and capital ranking as one of the most heavily taxed nuity (LA) providing up to 100% offshore gains are taxed at 30% and 12% effective, countries in the world. global market exposure. RAs and LAs are respectively. Whilst they do form part of Discussions of a potential wealth tax in also not subject to estate duty or executors an individual’s estate at death, executors’ future is on the table and has attracted a lot fees on death provided beneficiaries are fees are not payable. However, liquidity is of media attention. The current debt bur- nominated. restricted to five years. den as a percentage of GDP which Moody’s A tax-free savings account (TFSA) is fan- The endowment can also be invested up to has warned could cause further downgrade tastic in the sense that the investor is not 100% offshore, either indirectly or directly as well as a low economic growth rate. This limited in terms of the amount of offshore via two ways: leaves taxpayers with not many options to exposure as well as allocation to equities, 1. Investing in locally domiciled offshore legally avoid or minimise taxes. however, the only limitation is the amount funds (example unit trusts or ETFs) As the yearly budget speech has come and Arin Ruttenberg is an advisor at Brenthurst that can be invested per annum which cur- that are known as asset swaps or feeder gone, here is a brief reminder of all the Wealth Sandton rently stands at R36, 000. It is recommend- funds. tax-efficient vehicles currently available to ed that these be maximised every year for 2. The direct method, which may be the South African investors, together with a Current legislation allows for a maximum the entire household, and importantly, that better option as it allows for direct few of its advantages and limitations: retirement fund deduction of 27.5% of the investment products, not bank accounts, foreign currency, converting rand 1. Retirement annuity greater of remuneration or taxable income be selected. These are particularly impor- into foreign currency using the single 2. Tax-free Savings account to the maximum of R350, 000. tant for younger investors with a long-term discretionary or foreign investment 3. Endowment (Local and Directly Off- The RA however is still limited to the time horizon. The only tax, however, that allowance and investing the capital di- shore) shackles of Regulation 28 as there is a is payable is on death in the form of estate rectly offshore out of South Africa, not 4. Section 12J Investments limit to the allocation of offshore and duty and executors’ fees. needing to bring the money back into A retirement annuity (RA) is tax free equity exposure one can take, currently The Endowment: rand as with the asset swop version. within the structure, which means any 30% and 75% respectively, thus limits This one is particularly important for the growth that is achieved through dividends, true diversification which should be wealthier individuals and a favourite of interest and capital is not taxed. worldwide. Investors in these products, financial advisors, as it is often overlooked. Read the full article here

Creating a strict budget – and sticking to it

Budding stock market investor and BizNews journalist Jarryd Neves sends out car insurance provider to see if they will an invitation to anyone who wants to ask questions about share investing – but offer you a discount for driving less (if they is too embarrassed to ask. Write to [email protected] and tune in for his haven’t done so already). Also, as personal regular Monday column: On the Money. finance author Sam Beckbessinger writes, shop around for insurance. Compare your four can be faced with costs of R15,000 suddenly have it lapping a racetrack a lot quotes with other companies to see if they p/m. When the average salary in SA is just faster – and with far more efficiency, too. can reduce your premiums. You may find over R23,000 (according to Business Insid- Think of your monthly budget as the yourself saving hundreds of rands each er), you can see why many take on debt just Porsche. It’s time to strip every non-essen- month. to stay afloat. tial and squeeze every last cent out of that Transport That’s before you factor in medical aid, budget. While public transport is the best way to insurance, school fees and luxuries like No spend-days reduce your costs, South Africa’s network holidays and school outings. With all these One way to do this is by implementing no- isn’t known for reliability or efficiency. expenses, how are you to save for retire- spend days. I personally do this and look at If you own a car, consider trading down. ment, a home and a rainy day? it as a challenge. Dedicate one day a week Now that we’re less reliant on our cars, it’s Many people – especially in these dark (or a month) and challenge yourself to not rather pointless having a larger-engined ON THE MONEY financial times – have taken to trimming spending any money. Over time, those SUV sitting outside, when a more econom- their budgets with surgical precision. You small savings begin to add up. You also ical hatchback could do the same job for By Jarryd Neves may think your budget is as frugal as it can begin to realise that you really don’t need less. If you do find yourself commuting be, but there’s always room for improve- to spend your money. to and from an office, consider a lift club. ment. Evaluate your expenses With Covid, people may be reluctant to do et’s face it, times are tough. Creating a To use a motoring analogy, take the Gym memberships are costly. Be honest so. But by following the hygiene protocol, strict budget (and sticking to it) does Porsche 911. It’s a prime example of pre- with yourself: When is the last time you you could save yourself a few bucks. help order your personal finances, but cision and perfection. German engineers went? If the answer is “I can’t remember”, Be mindful of everyday expenses Lthe cost of living in South Africa makes it toiled and fussed over every centimetre of you’re basically giving R500 away each Not many people are looking over the difficult for many to live a modest lifestyle, the sports car to ensure that it is the best month. Look at your entertainment bud- electricity and water bills with an eagle eye. save money for retirement and remain debt- it can be. It goes around a racetrack like a get, too. Do you really need Netflix, DSTV, But it can save you some money in the long free. lightning bolt. It cannot be faster. The end. Amazon and Showmax? Pick the one you run. I’m not suggesting for one moment Life is expensive, and my word, do the ex- Or is it? Converting it into a race car takes use the most and stick with it. that you become a penny-pincher, analys- penses not stop coming. If you’re covering time and plenty. Stripping everything that Insurance ing every cent. the basics – groceries, healthcare, hygiene, isn’t essential – the leather seats, noise Chances are, you’re still working from transport and rent – an average family of insulation and all the heavy luxuries – will home. If that’s the case, check with your Click here to read the full article 8 | SATURDAY 01 MAY 2021 WWW.BIZNEWS.COM MOTORING 2021 World Car of The Year awards winners

By Jarryd Neves countries. In the UK, the electric SUV retails – but also terrifyingly twitchy handling at the wonderful materials and a massive emphasis from just over £40,000. Together with the limit. The recipe has been enhanced over the on quality. compact ID.3, Volkswagen intends on using years, with each generation inching closer ince 2004, motoring journalists from the ID.4 to spearhead the shift towards electric to perfection. The current model, the 992, across the globe have come together cars in Europe. is capable of being a perfectly comfortable to assess the merits of the latest and commuter or grand tourer. However, it’s also Sgreatest cars to shoot out of factories and World Luxury Car of the Year: Mercedes-Benz able to breach the 100km/h barrier in just 2.8 design studios. S-Class seconds and reach a top speed of 330km/h. Known as the World Car of the Year awards, The dual personality of the Turbo – and the the programme comprises 94 journos who sheer usability of the halo 911 is why it enjoys are tasked with recognising excellence in great popularity with keen (and monied) the automotive industry. The awards have drivers. developed, now including more categories, In the UK, the little Honda retails from just including World Luxury Car, World over £26,000. Performance Car and World Urban Car awards. World Car Design of the Year: Land Rover The panel has recently revealed the winners Defender for 2021. Let’s take a look at the esteemed winners. Often referred to as the crystal ball of the motoring world, the bahnstormer from World Car of the Year: Volkswagen ID.4 Stuttgart clinched the luxury car honours, reminding everyone that the folks at Mercedes- Benz know a thing or two about building a Both the coupé and roadster are available in large luxury car. The latest W223 has been South Africa, priced at R3 903 000 and R4 criticised by some who reckon it lacks the 102 000, respectively. gravitas or glamour of previous models, but the tech on offer is sure to make up for that. World Urban Car of the Year: Honda e Want to experience the sumptuousness of an Another vehicle that isn’t available locally is S? Locally, prices start from R2 413 360 for Honda’s inspired e. The styling is wonderfully Land Rover had to tread carefully when the S400d up to R2 428 840 for the S500. retro, harking back to the city cars of old – replacing the original Defender. After all, but with a modern, minimalist twist. The e it was an icon of off-roading and British Claiming Volkswagen’s fifth WCOTY award World Performance Car of the Year: Porsche is an electric vehicle and relies on a 35,5kWh ruggedness. Many people swore they’d never is the brand’s newly launched ID.4 electric 911 Turbo battery for power. This gives it a decidedly buy a modern take on the cherished classic, crossover. While not available in SA, the rules The 911 Turbo has a fearsome reputation impressive range of 220km – ample range but Land Rover got it just right. of the competition state the vehicle needs to among Porsche aficionados. The original for a city car. The interior of the three-door Read the full article here be for sale on at least two continents and five 930 was known for its immense capabilities hatchback is just as stylish as the exterior, with

Ford EcoSport: Perennial favourite showing its age?

By Jarryd Neves Another divisive styling element is the ment in the EcoSport is commendable. At There is, however, an appeal in the tur- tailgate-mounted spare wheel. This may lower revs it’s barely audible, only making bodiesel Ambiente. For just R11,000 more, free up space in the boot, but it looks itself known as you push the car. you get an incredibly frugal engine that is ord's EcoSport has been around strange and means the boot has to open On the motorway and in town, it performs capable of averaging under 4.0 litres/100 for quite some time, before any outwards and to the left. This can become a admirably. It does tend to struggle when km with care. mainstream manufacturer decided to hindrance when parked in a smaller garage climbing steep inclines, however. Thank- Fenter the compact SUV/crossover segment or in a packed parking lot. fully, this can be mitigated by stirring the that now enjoys such great popularity. Now, The boot itself is impressively spacious. five-speed manual gearbox. Speaking of the nearly every non-premium brand offers The square shape means packing things in transmission, it is nicely slick and a joy to an entrant in the R250K-R400k crossover is effortless, with some added space to be use. Unless you really need the automatic, market. Toyota and Suzuki have their Urban found under the boot floor itself. It mea- I’d recommend saving the money and stick Cruiser/Vitara Brezza twins, VW its classy sures 333 litres, enlarged to 705 litres with to swopping cogs yourself. T-Cross and Hyundai its stylish Venue. the rear seats folded down. Through the corners, the high-riding Eco- There are many more, but in all this time, Sport obviously cannot hold a candle to its the EcoSport has remained relative and Fiesta and Figo siblings, but for a crossover, What’s the interior like? popular. A refresher in a base-model Am- it feels dynamic. The steering is crisp and Inside the EcoSport Ambiente, you’ll find biente reminded me of just how accom- direct, something missing in many small a number of standard features, despite this plished Ford's offering is. crossovers and SUVs. The ride is comfort- being the range-starter. The cloth-trimmed Styling able most of the time, but does become un- seats are well-bolstered and very comfort- As always, styling is subjective. Personally, settled by consecutive road irregularities. able, with the driver’s seat boasting height I’ve never got along with the EcoSport’s adjustment. Hard-touch plastics are the styling, but then again, I could be wrong. order of the day, and while not sumptuous, After all, the EcoSport has continued to does at least feel well-screwed together. enjoy great success with consumers, who Behind the wheel This isn’t exclusive to the EcoSport. Rivals continue to buy them at a fair lick. Like other small Ford products (Figo, Fi- from Renault, VW and Hyundai all lack The Ambiente model is devoid of the esta) the EcoSport is a very engaging drive. this nice-to-have interior feature. trim and details found on posher models. The base model Ambiente is fitted with a The Ambiente trim-level boasts man- Instead of alloy wheels, you’ll find 16-inch 1.5-litre, three-cylinder petrol engine that ual air-conditioning, all-round electric steel wheels fitted with hubcaps. They’re also does duty in the Figo line-up. 91kW windows, a trip computer and rear parking attractive enough, but I think a set of alloy and 150Nm of torque push the EcoSport Personally, I wouldn’t stretch to the sensors. wheels is more suited to a car costing over along decently. Three-cylinder engines are 1.0-litre turbopetrol - although the appeal R300 000. inherently vibration prone, but the refine- of more toys may be too strong for some. Read the full article here