After the Steinhoff Scandal surfaced, the firm has lost tens of millions in accounting irregularities were revealed at the start of December. In a case that could result in, a number of the organization’s executives to be imprisoned
News on the Steinhoff Scandal showed that this was most likely to impact both investors and pensioners the most, which includes individuals who are investors to the Government Employees’ Pension Fund. The GEPF owned roughly R28 billion in Steinhoff International invested through PiC.
Still, the GEPF released a statement on December 8th that it is capable of managing themselves after the Steinhoff collapse. As the GEPF confessed to investing the shares in the firm at approximately 10%, it mentioned that the shares hold up at 1% of the entire asset. GEPF also states that the investments made by pensioners, staff and investors are protected.
Investors formed within unit trusts can also be caught in an event where a fraction of their invested funds is exposed to Steinhoff. However, Allan Gray, a South African investor, and philanthropist stated that the investment exposure to the firm had been restrained. The funds had roughly 0.1% of publicity each for Steinhoff, which ultimately led to a loss ever since purchase began on the several Allan Gray Funds. If by chance you are invested in a competitive unit of trust, it is advised to look in to what the funds has been invested on.
CEO, Floris Slabbert, at Exponent Financial Services, gave the idea that the younger people has a higher possibility to gain exposure as Steinhoff as they would have bigger portions of the company’s assets that has been invested in equities. However, folks that are planning to retire soon might also have the possibility of receiving a lesser blow as the majority of managers would’ve taken off their investments to a safer asset class.