High Income Fund 2
100% Tax Deduction in Year 1, immediately reducing your capital at risk by as much as 45%. The Fund, with High Income return characteristics, looks to achieve a steady and stable 8% dividend yield per annum paid out every 6 months throughout the 5 year investment term.
THE METTA CAPITAL HIGH INCOME FUND 2
Invest within assets that are influenced by micro-economic factors as opposed to macro-economic factors. Ability to invest directly into high growth sectors such as renewable energy and provide mezzanine finance to stable and predictable projects.
- Access to multiple Section 12J funds in SA’s key growth sectors.
- An anticipated Internal Rate of Return – 18,8% (Net of Fees & Taxes)
- Diversified exposure to professionally selected investments.
- A Reduced minimum invest size of R350 000.
- Zero additional fees payable to Metta Capital.
- A comprehensive product that is supported by SA’s largest wealth managers.
DIVERSIFIED PORTFOLIO OF MARKET LEADING 12J INVESTMENTS
ANTICIPATED RETURN PROFILE FOR INDIVIDUAL INVESTORS
1. Assuming a natural person paying tax at the maximum marginal rate of 45% and subject to dividend withholdings tax of 20% where applicable.
2. Returns are forecast by applying the market returns of each VCC to their weightings within the Metta Capital High Income Fund portfolio.
3. All returns shown are ner of all fees charged by the investment managers, including their specific performance fees.
The cash flow profile and cash return chart demonstration may not necessarily reflect the actual returns that will be earned by Metta Capital High Income Fund.
The Metta Capital Investor Experience
Retirement Annuity vs Section 12J Investments
Retirement Annuity | Section 12J Investment | |
|---|---|---|
Investment cap | R350 000 per annum | R2.5 million per annum R5 million per company |
Deductible portion of taxable income | 27.5% | 100% |
Annual costs | 3 – 6% | 2 – 3 % |
Tax on returns | Income Tax – up to 45% | Dividends Tax – 20% |
Tax on withdrawal | Income Tax – up to 45% | Capital Gains Tax – 18% |
Exit | 55 years of age | 5 years from date of investment |
Regulations | FSCA | FSCA |
Investment status | Members of an RA | Shareholding within Public Unlisted Companies |
Building the High Income Fund
Stage 1 – 184 VCCs
Obtains the SARS approved Section 12J supplier list and embark on the desktop level screening process in evaluating each VCC’s ability to meet the portfolio’s investment mandate.
Stage 2 – 42 VCCs
Through the completion of initial screening process and consultation to prior investment process results, a shortlist of VCC’s are invited to participate within the formal investment process.
Stage 3 – 12 VCCs
Through requests of additional information Metta Capital then apply their strict investment mandate criteria to the second layer of screening to obtain a shortlist of VCC’s to be invited to present to the Investment Committee.
Stage 4 – 5 VCCs
Metta Capital’s Investment Committee evaluates the due diligence and investment packs generated for each shortlisted VCC and, following the completion of all VCC interviews, compile and weight the strongest possible investment portfolio based on the portfolio’s specific investment mandate criteria.
HIGH INCOME FUND 2 INVESTMENT PAck
Download our investor pack to review why Metta Capital’s High Income Fund 2 is the most comprehensive Section 12J investment product in the market.
