A 'solidarity' tax is under serious consideration by government. The brazen gall of this is staggering. The Covid Solidarity Fund was generously contributed to by all - and half was promptly stolen. And you want more?
It is reported by Bloomberg that a government policy document (sighted by BB) proposes a 3-year 'solidarity tax'. A further doc by Wits' Centre for Inequality Studies proposes that this tax start at 3% of assets exceeding R3.6m, rising in steps to 5% and 7%.
And lest we forget that Mabuza's answer, in parliament to the theft of Covid funds, was that government 'did not know' that the money would be stolen. This is the level of idiocy with which our taxes and donations are dealt with.

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More from @Richards_Karin

2 Sep
HMN Rights Issue: Below is a thread with a recap of some further info & thoughts. Most NB is that if you do not wish to take up your rights (the outlay is significant) then sell. And do not let your rights expire worthless.
HMN: Asset sales plus rights issue will raise £825m. Gearing will be reduced to 57% (well within covenants) and LTV to a reasonable 42%. There appears to be adequate headroom even if values decline by a futher 20% [in addition to -24% already taken at June].
HMN: There are no significant debt maturities in 2020 & 2021, allowing some breathing space. It is anticipated that there will be further material disposals to reduce debt further. Improved balance sheet strength should allow this to happen in a planned manner.
Read 10 tweets
26 Apr
Draft "lockdown" legislation: Some items of interest from the document published yesterday.
Full doc is here:
Draft legislation: Restaurants:
Level 5: Restaurant and take-away not permitted.
Level 4 & 3: Only food delivery (9am-8pm) and subject to curfew. No sit-down or pick-up allowed.
Level 2: Only take-away and delivery.
Level 1: Sit-down, take-away and delivery permitted
Draft legislation: Alcohol:
Level 5 & 4: No sale of liquor permitted.
Level 3: Off-premises consumption of alcohol subject to limited hours (Mon-Wed 8 -12pm).
Level 2: All retail permitted subject to directions.
Read 8 tweets
1 Sep 19
1/ I see dozens of tweets like this. People scared witless and 'divesting' out of SA no matter what the cost (often 36% tax on hard-earned pension savings) and without thinking it through. Sure have some offshore exposure, but unless you are emigrating in the near future...
2/...do not destroy your pension savings in a knee-jerk reaction to scare-mongering. At least wait a bit. The JSE still offers substantial off-shore earnings and SA Inc stocks are at attractive valuations. Interest is picking up & value is starting to crystallize.
3/ If you miss out on a few good JSE weeks such as last week, it will be near-impossible for you to make this up by buying overvalued foreign stocks with a weak Rand and after throwing away 36% in tax. Plus all the associated fees & costs.
Read 6 tweets
16 Jun 19
1/ NPN NewCo: Naspers is effectively lifting & shifting 25% of the market cap of NPN from the JSE to Euronext Amsterdam. NewCo is expected to be Europe's largest listed consumer internet group by asset value.
2/ NPN NewCo: Naspers expects the Newco listing to reduce the current discount, albeit over time. They calculate that every 5% reduction in the discount equates to $8.5bn of value for shareholders. They expect significant active & passive incremental capital flow into NewCo.
3/NPN NewCo: Shareholders will have 2 choices:

1⃣Receive 1 Naspers M share for each Naspers N share you currently hold. Each M share will be converted into a NewCo N share (default option).
-- OR --
2⃣Receive 0.36986 Naspers N shares for each Naspers N share you currently hold.
Read 10 tweets
16 May 19
1/ Investec: Most interesting part of the results is trying to glean some info on the Asset Management biz which will be spun out later this year. It looks good to me.
2/ Investec AM: AUM increased by 7.3% to £111.4bn with net inflows of £6.1bn. Inflows were well divided between SA and UK. This is good for the geographic spread. We've seen how Coro has struggled to grow its international biz, so it's not easy to establish.
3/ Investec AM: Operating Profit was up slightly (+0.7%), impacted by lower performance fees in SA, new London premises & regulatory costs. A credible result in what has been a difficult year for all asset managers.
Read 6 tweets
27 Mar 19
Kieran, you are not the only person troubled by this, so I will respond in detail below. Will keep it very simple and basic. May be too simplistic for your needs, but may be of help to others.
JSE listed ETFs tracking foreign indexes, such as STXNDQ and STX500 are definitely Rand hedges and excellent ones too. Basically, the underlying assets, which are denominated in US$ are converted at the ruling rand exchange rate to arrive at the currently traded Rand price.
So if the Rand weakens, the JSE price for the ETF will rise, even if the $ price of the underlying assets has not increased.
Read 11 tweets

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