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Launched in 2017, Metta Capital has acted as a respected, independent aggregator in the Section 12J asset class. Picture: SUPPLIED/METTA CAPITAL
Launched in 2017, Metta Capital has acted as a respected, independent aggregator in the Section 12J asset class. Picture: SUPPLIED/METTA CAPITAL

Section 12J’s sunset clause becomes official at the end of June 2021, marking the end of this successful tax incentive in SA. 

Since 2008, Section 12J has been part of SA’s Income Tax Act and provided investors with an immediate tax deduction equal to 100% of the amount they have invested. In turn, about R10.34bn has found its way via the Section 12J initiative into smaller businesses, creating between 9,000 and 10,500 jobs.

The end may be near for 12J, but there is still one last chance for investors to get involved, and there’s no better way to do this than via SA’s first and only Section 12J portfolio of funds provider.

Launched in 2017, Metta Capital has acted as a respected, independent aggregator in the Section 12J asset class, bringing to market four Section 12J portfolios to date.

Click here to view its performance >>> 

Metta Capital’s investment committee, chaired by Dr Adrian Saville, compiles and weights diversified portfolios of Section 12J Funds. This offering has allowed investors single-entry point access into a portfolio of market-leading Section 12J investment strategies while charging no additional fees to the investor for the use of its platform.


Earlier this year, Metta Capital launched its first High Income Fund, an offering that reduces the minimum investment requirement to R350,000. The round of investments for Metta Capital High Income Fund I came to a close on February 25 2021 but the Metta Capital High Income Fund II is open to new investments until June 29 2021. The portfolio has been designed to include investment strategies that yield stable and predictable income returns, earned off the back of strong asset underpins. 

In the current low-interest-rate environment and with a shortage of strong yields being achieved in traditional asset classes (such as listed equities and property), the High Income Fund II aims to provide investors with:

  • Access to multiple Section 12J funds in key growth sectors (renewable energy, agricultural and infrastructure). 
  • An expected internal rate of return of 18.8% (net of fees and all tax considerations).
  • An average annualised 8.3% dividend yield paid biannually.
  • Personalised quarterly investment statements and newsletters through its reporting and distribution partner Prescient Fund Services.

Section 12J is also one of the only mechanisms to access direct renewable energy investments, and its High Income II fund allocates 47% of the portfolio to this sector to give investors access to the enormous growth in this market segment.


Partnership with Standard Bank Wealth & Investments

During its existence, Section 12J investing has become an important asset class to consider when building a client’s portfolio.

Its significant tax and uncorrelation benefits is driving wealth managers to ensure their clients have at least a portion of their assets allocated to this asset class.

Standard Bank Wealth & Investments has been ahead of the curve by recommending Section 12J investing, and the important alternative asset to have within its client’s portfolio mix. Metta Capital has been a partner for three years and looks forward to presenting its comprehensive Section 12J investment solution to its clients.

Section 12J vs retirement annuities

Metta Capitals’ High Income II fund provides investors with a similar level of diversification South Africans have become accustomed to with many RA funds and other investments, but in faster-growing parts of the SA economy and with key differences.


Through all the years of this successful initiative, Section 12J investing has been made accessible through Metta Capital’s diversified access into the market’s leading investment strategies. If you’re going to take up the final opportunity to invest in this space, Metta Capital is ready to help you every step of the way.

This article was paid for by Metta Capital.


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