Steinhoff share price massacre and SA Unit Trusts

None of my RAs portfolios nor my Provident Fund or unit trusts had anything above 2% in them.

My one RAs portfolio which has about 25% Coro Indi fund in it, and thus had about 1.85%.

My other RAs portfolio had 0%.

10X Provident Fund had under 2% as well.

Satrix EW Top 40 is 50% of my discretionary unit trusts portfolio, and thus is also under 2%.

Yay for diversification!
 
Last edited:
Coro Top 20 as of 31 October had 6.2% in Steinhoff :sick:
 
RandomGeek said:
Coro Top 20 as of 31 October had 6.2% in Steinhoff :sick:
Click to expand...

so if that 6.2% loses two thirds, that's a rough 4% drop overall for the Coro Top 20... will look at the unit prices as they are updated for exact prices
 
The company that I work for was owned by Steinhoff Int, for a while - while we were, there were selected staff members that qualified for some profit sharing share gifting program. The program matured and paid us out last week - seemingly just before the pawpaw hit the fan.
 
Ghoster79 said:
The company that I work for was owned by Steinhoff Int, for a while - while we were, there were selected staff members that qualified for some profit sharing share gifting program. The program matured and paid us out last week - seemingly just before the pawpaw hit the fan.
Click to expand...

Very fortunate!
 
Tell me about it - going to withdraw all the money and stick it under the mattress:whistle: tell anyone who comes looking for it that I blew it at the casino:D
 
sand_man said:
Yeah, just seen R100k wiped off my share portfolio...

View attachment 483762
Click to expand...

That's devastating, my sympathies... Who could've known weeks/months and years ago.

I own NewFunds GIVI Industrial ETF which has about 12% Steinhoff wighting. I guess the S&P "Global Intrinsic Value Index" missed the overstated "Intrinsic Value" of Steinhoff:whistle: These Beta ETFs are risky. Though, Market Cap - based ETFs like Starix 40 with high weighting of Naspers is also risky in light of the Steinhoff revelations. S'pose one's entire ETF portfolio should limit any individual company to 5% or so,,
 
mogiletsiZA said:
That's devastating, my sympathies... Who could've known weeks/months and years ago.

I own NewFunds GIVI Industrial ETF which has about 12% Steinhoff wighting. I guess the S&P "Global Intrinsic Value Index" missed the overstated "Intrinsic Value" of Steinhoff:whistle: These Beta ETFs are risky. Though, Market Cap - based ETFs like Starix 40 with high weighting of Naspers is also risky in light of the Steinhoff revelations. S'pose one's entire ETF portfolio should limit any individual company to 5% or so,,
Click to expand...

Steinhoff is less than 2% of my porfolio. If Naspers were to take a hit though.... :sick:

Capture.jpg
 
mogiletsiZA said:
That's devastating, my sympathies... Who could've known weeks/months and years ago.

I own NewFunds GIVI Industrial ETF which has about 12% Steinhoff wighting. I guess the S&P "Global Intrinsic Value Index" missed the overstated "Intrinsic Value" of Steinhoff:whistle: These Beta ETFs are risky. Though, Market Cap - based ETFs like Starix 40 with high weighting of Naspers is also risky in light of the Steinhoff revelations. S'pose one's entire ETF portfolio should limit any individual company to 5% or so,,
Click to expand...

That's why my one discretionary unit trust is the Satrix Equally Weighed Top 40 and the other one the Satrix MCSI World index, even mighty Apple isn't over 2% in that.

world index.JPG
 
supersunbird said:
That's why my one discretionary unit trust is the Satrix Equally Weighed Top 40 and the other one the Satrix MCSI World index, even mighty Apple isn't over 2% in that.

View attachment 483824
Click to expand...

MSCI World ETF with Satrix (or Sygnia) is for sure the most diversified equity ETF available in SA. With around 55% US weighting, it offers exposure to the S&P 500 which negates any reason to own the S&P 500 ETF. The Satrix Emerging Market ETF is another very well diversified ETF that gives exposure to great companies in China, Brazil and ZA to name a few. Naspers (and Tencent) exposure is only like 5% overall.
 
Commentary on the radio ....Christo Wiese: “This has been worse than a divorce. I have lost half my wealth. And I still have a wife.”
 
Quite an outspoken article about asset managers by Magda Wierzycka: https://www.fin24.com/Opinion/magda...s-about-steinhoff-and-asset-managers-20171207

The serious question to ask is how so many active asset managers in South Africa missed this. Priding themselves on meticulous research, scrutiny of balance sheets and income statements, backed by interviews with management, they should have seen what was obvious from the beginning: that this was as close to a corporate-structured Ponzi scheme as one can get.

When I looked at the financials of Steinhoff (not my day job, by the way), I had another Net1 moment – it took me exactly half an hour to figure out that the structure was obfuscated, that financial items made no sense, that the acquisition spree was not underpinned by any logic and too frenzied to be well thought out, and that debt levels were out of control.
Click to expand...
 
Last edited:
Steinhoff owes more than 115 billion rands over the next 5 years.

As equity investors pummel Steinhoff International Holdings NV’s shares, bondholders and banks are assessing the retailer’s ability to repay debt. The company -- which has had about 140 billion rand ($10.3 billion) wiped off its market value in the two days since its chief executive officer quit over accounting irregularities -- needs to pay 620 million rand in principal and interest on Dec. 12. Steinhoff is selling non-core assets and refinancing debt owed to it by a subsidiary to boost liquidity, fund its operations and reduce liabilities as it faces 31.8 billion rand of repayments next year.
Click to expand...


https://www.bloomberg.com/news/arti...ing-may-persist-as-debt-repayments-loom-chart
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X