Making an investment is a decision that requires a good deal of consideration. We’ve put together a set of FAQs to assist you in that decision, and to see how investing using your tax liabilities is nothing less than a win-win situation.

What does an investment in AEI give me?

Investing in AEI provides a maximised tax rebate for provisional, PAYE taxpayers as well as companies and trusts in the short term and boosted shareholding in young energy, telecoms and technology companies in the long term.

Who is this investment for?

Owing to our low minimum investment amount ,the AEI Section 12J tax investment caters to a broad investor base. Our clientele include high net worth individuals as well as lower income earners who are on the up.

Is any of my own capital at risk?

No personal capital, such as savings, income, or other investments are permitted to be invested. We accept only income tax liabilities, including company tax and personal tax, and structure investments to make more efficient use of your tax liabilities whilst reducing potential capital gains tax, dividend withholding tax and inheritance tax.

What is AEI’s investment philosophy?

AEI sees Section 12J as a means for ordinary South Africans to invest in society-transforming companies that create jobs and add to the country’s GDP. We embrace the opportunity for taxpayers to own a share in, and directly benefit from, the growth of the country’s energy and telecoms sectors.

How many companies am I investing in?

With your tax, you invest in the Alumni Energy Investments venture capital company or fund. This gives you exposure to all of the companies in the fund. There are currently eight companies in a diversified mix across energy, telecoms and aviation technology.

How long do I need to be invested for?

The minimum investment term for all Section 12J investments is five years. You may choose to liquidate your investment before the term ends, however, you will be liable to pay penalties and fees in respect of proportional tax recoupments on the tax you saved when investing.

What is the minimum investment amount?

The minimum investment amount is R30,000. This amount is significantly below the industry standard for Section 12J.

What are my exit strategy options?

After five years you will have the option to hold your shares and be eligible for dividends. AEI may also activate a share buy back scheme. You may also choose to sell your shares. Do bear in mind that companies in the AEI fund are predominantly long term in nature and therefore optimal exit considerations tend to be long term in nature.

How does AEI compare with other 12J?

Besides our core investment philosophy of offering access to a broad cross-section of South Africans and seeking to transform South Africa’s energy sector, we embrace the concept of healthy investor portfolio risk. With AEi you get market leading rebates and long term de-rsked upside potential.

What type of returns can I make?

We offer a few incentives, such as an early investment bonus, to improve your returns in the short term. We also offer 2,5 to 4 times your investment in shareholding. Should the hydrocarbon exploration companies in the fund find oil or natural gas the valuation of the fund could increase dramatically to R20 to R40 per share depending on the size of the find. Successful completion of the telecoms trial currently underway will lead to a significant increase in share price.