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Taxpayers who are interested in adding Section 12J investments to their portfolio before the end of June, are advised to consider how these investments have performed historically. A proper due diligence may reveal that the majority of Section 12J investments do not publicly report their returns and, when requested to, rely mostly on the returns generated from the tax refund as opposed to the underlying investment returns.
The Infinity Anchor Fund is one of the first Section 12J investments, to differentiate itself from its competitors through its consistent annual performance, outperforming the majority of the Section 12J market. The fund manager discloses both actual and expected returns and has maintained consistent semi-annual dividend payments over the past few years. Gaurav Nair, CEO of the Infinity Anchor Fund says, “We encourage taxpayers to assess the merits of investments in this niche investment segment based on actual historic returns, after taking all fees and all taxes into account. Once this is done, investors will realise how exceptionally strong Infinity Anchor Fund‘s year-on-year performance has been”.
One of the standout investment considerations for Infinity Anchor Fund, is that it offers investors the comfort of income by way of semi-annual dividends, and the expectation of moderate capital gains at the end of the investment term. “We invest in asset rental businesses by injecting the equity capital needed to continue growing these businesses; we anticipate moderate returns given the low risk profile of this investment” says Gaurav. The investment’s target market includes businesses that have a great track record in offering rental solutions to credit worthy clients, have low to zero bad debts and have a history of generating predictable returns to shareholders.
Gaurav and his team are continually engaging the market for positive yielding opportunities with the potential for long term growth. Recent investments include Secutech, which provides security-related technology to business sites and residential estates and Rise Telecoms, which provides cost-effective high speed internet access to residential buildings. “Our investment portfolio has surpassed our expectation during the pandemic, and we are pleased to report to our investors that the investment has had positive growth during all levels of lockdown,” says Gaurav.
Why consider investing in Infinity Anchor Fund 2021? “Motivations include market-leading returns; a competitive and transparent fee structure; a diversified investment strategy (avoiding any property exposure) efficient capital deployment; and an impressive investment pipeline” says Gaurav.
Investors who invested in Infinity Anchor Fund in 2019 are on track to achieving excellent returns even if one ignores the tax benefit, considering the performance of a few of the underlying investments, with Secutech and Rise Telecoms achieving respective IRRs of 9.73% and 9.45% to date. “These are good investments without the tax break; the tax break does provide a significant enhancement for investors” says Gaurav.
One of the reasons competitors struggle to outperform Infinity Anchor Fund, is simply because their performance fee structure is too high. Taxpayers must pay attention to how performance fees and returns are calculated. It is common practice for these investments to charge a performance fee on both the growth of the investment and on the tax benefit. This results in exorbitant fees to investors and as a consequence, much lower returns.
Infinity Anchor Fund has gained the support of a financial institution which would provide a low interest loan to taxpayers who are looking to invest in Infinity Anchor Fund 2021 before the end of June. Taxpayers can now apply for funding of up to 95% of the investment amount at an initial interest rate of 4%. “The funding line makes sense for two types of taxpayers, the first, is a taxpayer who has not yet built up the cash reserves to invest in June. The second is a taxpayer who would rather fund the investment at a low interest rate of 4%, because he/she can generate more than 4% on his/her capital elsewhere in the market” says Gaurav.
Given that the Section 12J incentive will not be extended beyond June this year, investors have a limited period in which to invest in Infinity Anchor Fund 2021.
For more information on the Infinity Anchor Fund, click here.
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