Section 12J: Jaltech’s Infinity Anchor Fund continues to outperform its competitors


Section 12J: Jaltech’s Infinity Anchor Fund continues to outperform its competitors


Published Date: 2021-11-23 | Source: INCE|Community | Author: Jaltech

Section 12J: Jaltech’s Infinity Anchor Fund continues to outperform its competitors

Alternative investment specialist, Jaltech, released the results from its flagship Section 12J investment this month, Infinity Anchor Fund Ltd. Infinity Anchor Fund focuses on investing in businesses which earn income from the rental of movable assets or through long term contracts such as solar and fibre infrastructure (amongst others).

The recent results announcement has demonstrated Infinity Anchor Fund's consistent performance, from inception, yielding an annual dividend of 5+% (ignoring the tax benefit) and an expected annual IRR of 15.6% (including the tax benefit at a 45% marginal tax rate).

Patrick Nesbitt, a senior fund manager at Infinity Anchor Fund, says that "the Fund has continued to generate returns even when one ignores the associated Section 12J tax benefit and the Fund's dividend distribution this month ensured that it has continued to meet its 6-monthly dividend target from inception.

One of the key reasons for Infinity Anchor Fund's performance is its ability to deploy capital despite the difficult market conditions associated with COVID. Infinity Anchor Fund is on track to deploy R100 million by the end of this quarter.

Patrick further states that "although deployment is an important focus, the investment market has required more caution from fund managers given the negative market conditions associated with COVID. The Fund's approach has largely been to increase its risk mitigation measures so to ensure capital preservation given the uncertain economic environment.

A second key driver for Infinity Anchor Fund's continued performance is risk mitigation. The associated strategies employed by Infinity Anchor Fund, such as underlying guarantees and first losses, have enabled performance while preserving capital and navigating uncertain market conditions.

Although COVID has resulted in Infinity Anchor Fund taking a more cautious approach, Patrick is confident that Infinity Anchor Fund will deploy all cash under management within the next 12 to 18 months, particularly given that banks have pulled back on funding.

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