JOHANNESBURG, FEBRUARY 7, 2020 -— MeTTa Capital is proud to announce that its February 2020 portfolio of Section 12J offer, is now accessible to Standard Bank’s Wealth and Investment clients.
As part of the agreement, Standard Bank’s wealth managers can now on-sell MeTTa Capital’s Moderate Risk III portfolio to their clients. This development comes after Standard Bank’s investment teams and committees rigorously vetted MeTTa Capital.
MeTTa Capital launched the first-ever portfolio of funds offering for the Section 12J space back in 2017. Headed up by a highly experienced board, MeTTa Capital has focused on selecting market-leading Section 12J funds and creating a single entry point for investors to access a diversified basket of tax-deductible, high-yielding investment opportunities.
MeTTa Capital has conducted two capital raises and made investments into ten different Sars-approved Venture Capital Companies (VCCs) – all while delivering strong returns for its investors. The VCCs operate in key sectors ranging from hospitality, student accommodation, infrastructure, agriculture and the fast-growing renewable energy space.
Darryn Faulds, Fund Manager for MeTTa Capital, says: “Through this deal, we believe we will bring more investors into the Section 12J space. MeTTa Capital was a pioneer in 2017 when we launched the market’s first-ever portfolio of Section 12J funds. Our goal has always been to make it easier for investors to enter this space and this latest agreement will provide a further boost to these efforts.”
Making Section 12J count
Section 12J is government’s way of incentivising the private sector to be part of South Africa’s growth story. The asset class has experienced strong growth recently, with the market expected to surpass R10bn under management by the end of February 2020.
A key challenge to boosting investment in this space exists with removing barriers and providing clarity and transparency across the 160 Section 12J investment opportunities available in SA.
The abundance of choice in the market, coupled with high investment minimums (traditionally between R100 000 to R1 million), previously presented deterrents for wealth professionals and institutions who were seeking Section 12J investments for their clients. In a bid to solve this problem, a team consisting of some of SA’s most prominent and reputable businesspeople went on to launch MeTTa Capital in 2017 and create the first-ever aggregated product vehicle for Section 12J.
This innovation has allowed investors the opportunity to invest in a portfolio of market-leading 12J investment strategies, which are hand-selected by MeTTa Capital’s investment committee for a minimum of R500 000. MeTTa Capital investors can now own shares within multiple Section 12J VCCs at no additional fees. Investors who invest with MeTTa Capital also benefit from a transparent and market-leading post-investment reporting service.
By lowering the barriers to entry and widening its reach, the 12J market has the opportunity to grow even faster and help create better prospects for the South African economy.