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The attraction of the upfront income tax relief, via Section 12J, is that it effectively reduces the cost of the investment, thereby boosting overall returns.

The venture capital incentive in terms of section 12J of the Income Tax Act, No. 58 of 1962 (the Act), is a mechanism attempting to accelerate the economy and enhance private investment and equity funding in small and medium-sized South African businesses.

Following the listing of Vukile Property Fund’s Spanish subsidiary Castellana Properties SOCIMI SA as a REIT on the Alternative Equity Market on the Spanish Stock Exchange, the board of the Spanish REIT has considered and approved the opportunity to acquire the company which holds a portfolio of four shopping centres in Spain, purchased from Unibail-Rodamco-Westfield.

In a market that perpetually favours the Top 40, reports showing that South African small-cap stocks are the cheapest in the world may prompt more interest in small and mid-cap counters.   

But cheap doesn’t necessarily mean good value – especially if the share stays cheap. Nor does it mean that cheap shares will necessarily move to fair or full value. 

Companies that fall outside of the JSE’s 40 biggest firms, referred to as small-and mid-cap stocks, are among the cheapest in the world, but investors are largely ignoring them despite prospects for juicy returns, says Keith McLachlan, a fund manager at AlphaWealth.
SA’s small-cap sector was trading at almost the same lows experienced during the global financial crisis, McLachlan, a small-cap specialist, told Business Day on Wednesday.

Value distortion is creating opportunities.

An investor looking at the JSE today is really looking at two distinct markets. There are the large-cap stocks, which are generally multinational companies that earn the majority of their revenues outside of the country, and the mid and small caps that are predominantly dependent on the South African economy.

By: Patrick Cairns   Source:  MoneyWeb Instant Magazine Value distortion is creating opportunities. An investor looking at the JSE today is really looking…

Research finds deeply discounted opportunities, which stand to benefit the Westbrooke Special Opportunities Fund

Westbrooke Alternative Asset Management has undertaken extensive research into the South African small and mid-cap sectors, finding significant deeply discounted opportunities, which they plan to act on to benefit the Westbrooke Special Opportunities SNN QI Hedge Fund.

The Island’s new Jersey Private Funds regime appears to be successfully striking the right balance between investor protection and freedom for experienced investors to invest where they want, according to law firm Walkers.

Investment group Stellar Capital Partners (SCP) has officially put security technology subsidiary Amalgamated Electronic Corporation (Amecor) up for sale, and is on the verge of securing an empowerment partner for subsidiary Prescient Investment Management.