Investment Insight: Dividend pay-out for 12J investors
Anuva Investments, a registered Section 12J Venture Capital Company, has announced their interim results with a dividend payable to investors in their equity fund. Shareholders will receive 70 cents per share at a return of 4.1% as at 31 January 2021.
According to the company’s Chief Financial Officer, James Rothmann, the fund has performed extremely well, considering the current financial climate. “Anuva’s Class A equity investments have faced considerable challenges through the lockdown and Covid-19 crisis, yet we are pleased to report that these companies continue to ride out the storm and are trading upwards and in the right direction. We are deeply appreciative of the managers of these businesses and the guidance of the Investment Committee,” he said.
The VCC’s investment committee confirmed that although they continue to consider investment into promising and suitable SMMEs, their strategy of developing companies in which they are already invested with a focus on promoting profitability and positive cash flows, stands.
The company is expected to raise significant capital into various portfolios as new investors make the most of Sars Section 12J tax incentive before the February 28 tax deadline. The incentive is set to expire in June this year, so this marks the penultimate opportunity for investments to qualify for the tax rebate.
In order to widen the net and make the incentive available to more interested parties, the company has introduced a low-interest loan funding facility to shareholders. “Cash-strapped investors can take advantage of a loan to maximise their 12J allowances, or proceed via bridged funding until such time as SARS refunds the PAYE”, said Rothmann. “Anuva continues to trade positively and presents a viable and rewarding alternative to paying income tax,” he concluded.
Financial records indicate that the average annual dividend to Anuva’s Class A investors is 8.4%; a R1 million investment in Anuva Class A in 2015, has yielded dividends to date of R502 330.