+27 (0) 11 568 3490 admin@svcapital.co.za

Investments that make sense

FAQ’s

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What is a real rate of return?

A real rate of return is the annual percentage return earned on an investment, which is adjusted for changes in prices due to inflation or other external effects for example; if Bank A gives you a return of 7.23% in a savings account and inflation is currently at 6% it means that your real return is 7.23% – 6% = 1.23%.

How do I pay funds into my account?

Once you have registered as a client and your account has been activated, you can invest online by using:

  • Debit card
  • Eft
What happens to my contributions?
  • Once you have signed up and you have made the payment, your funds will be used to invest in the agreed upon investment.
  • Every time you contribute you will receive a receipt to the value of your investment.
When will I get my money back?
Our investments have different maturities/ payment profiles. The investment period/payment profile will be highlighted to you on each investment and the signing of the agreement will be an acceptance of the investment period/payment profiles. The funds will be locked-in for the set investment period and you will not have the option to withdraw early.
What fees will I pay?

A management fee, which fee will range between 1% and 4.5% of the Investment Amount and must be paid at the end of each quarter of the annual Investment Period. The management fee will be disclosed to the client in a quarterly report.  The amount of any quarterly management fee will be subject to the investment return generated during such quarter as follows:

  • 1%-4.5% will be charged once animals have been sold and proceeds have been received every quarter.
  • any interest earned on the Investment Amount while maintained in a SV Capital Account pursuant to providing the Mandated Services

At the end of the Investment Period, SV Capital will be entitled to retain 40% of the investment return in excess of the 20% performance fee. This fee will be split 20% towards the farmer and 20% to SV Capital. This means that at the end of the Investment Period, the client will only receive 60% of any return above 20%.

How will I know what is happening with my investment?

• SV Capital will provide the Client with a report immediately following the initial acquisition of Livestock indicating:
(1) the Livestock acquired;
(2) the Client Participation Ratio applicable to the Client in respect of such investment; and
(3) the actual cost of the Livestock acquired in respect of the Client Participation Ratio

• SV Capital will further provide the Client with quarterly reports during the Investment Period indicating:
(4) the investment performance during such quarter; and
(5) fees payable in respect of such quarter.

Is my investment guaranteed?
Your investment is not guaranteed; SV Capital has taken measures to insure the best possible outcome by conducting extensive due diligence on the partner companies that will be used but there is a level risk that you will be taking in this investment.
What is the expected return?

We cannot guarantee a rate of return, this depends on the industry and market performance which we cannot be controlled.

Who are the auditors?

The auditors are SnB Auditors (practice number: 966205) on the regulatory body of auditors

Are you regulated by the FSB or any other regulatory body?

We do not provide financial advice nor do we provide investment instruments. We provide a platform allowing investors access to assets that would not readily be available on the market. All investment decisions are at the sole discretion of the investor.

We are registered as a company which means we are governed by the Companies Act, Act no 71 of 2008 of South Africa. We have also appointed auditors and a board of independent directors in order to achieve the best corporate governance practices

Can I reinvest all or parts of my money once my investment has matured?

Yes, once the investment has reached the end of the investment period, you will be given three options on maturity:

  1. Reinvest your principal investment with the returns earned
  2. Reinvest your principal and extract returns
  3. Reinvest returns only and take out your principal. This can only be done if the returns amount meets the threshold of the minimum investment (i.e. R2,000)
Can my ownership be transferred or sold to someone else?

No, your investment held cannot be transferred nor sold to anyone without prior written consent from SV Capital

What is the Agrifund?

Agrifund is the description given by SV Capital for all agricultural assets invested in specifically livestock. Investors have the ability to acquire livestock, through the Agrifund investment platform, which is managed by the farmers on their behalf. The livestock will form part of the offtake agreements which are already in place thus ensuring that a buyer is secured when it is the livestock is ready to be sold.

How often do I get paid?

How often you get your money depends on the type of asset you purchased. With cattle and lamb you’ll receive a pay-out at the end of the investment period which is 12 months.

What will my returns be?

Because returns are dependent on prices upon sale, it will vary. Our projections take a host of variables into account to determine your expected internal rate of return:

Cattle: 13 to 15% per year.

Lamb: 14% – 18% per year.

How much does it cost to start investing?

You can start from as little as R500 depending on the product you buy. All fees related to maintaining the livestock are included in the principal amount. SV Capital will charge a fee every quarter which will be calculated on the total fund value.

How can I be sure that I get the best deal for my money?

SV Capital has done extensive research to ensure that investment products provide the best option for your money. In addition to carefully selecting and vetting each product, we have partnered with some of the best and most experienced players in the industry to ensure that your investment products are optimised to provide the best possible returns. We only partner with reliable suppliers.

What happens if my livestock dies?

By owning a fraction, it means that all loses of livestock are absorbed by the group. Insurance is included in the cost of investment, allowing us to replace them easily.

How liquid is my investment?

The investment is not liquid. Your funds will be locked in for 12 months.

What due diligence has SV Capital carried out to ensure my investment is safe?

Extensive due diligence is performed on every investment product to ensure investment are viable, the correct returns profile is attained and there are social economic befits associated with the investment before it is brought to market. The due diligence is not only carried out on the assets, but also on our service providers to ensure they can deliver on the task at hand (managing investment assets).

How do I become a farm partner?

Get in touch with us at admin@svcapital.co.za

What's in it for SV Capital?

SV Capital understands the importance of the agriculture industry in South Africa and the contribution it makes to the economy and surrounding communities. In addition, SV Capital looks to focus on sectors that have a massive social-economic impact on the African Continent. SV Capital will earn a management fee charged every 3 months on the value of the investment. This fee is already included in our projections for the performance of your investment.

I am an institutional investor. Can I invest in the livestock?

Yes, definitely. Contact us at admin@svcapital.co.za

Are there tax benefits attached to investing in livestock?

In addition to the return generated by your livestock assets, you may also qualify for a tax benefit. As SV Capital does not dispense tax advice, please contact a tax practitioner for a clearer picture about the implications on your taxable income.

How often will we receive reports?

Reports will be sent every 3 months, these will highlight the performance of your investment.

How does investing in SV Capital differ from traditional investment vehicles?

By investing in SV Capital, you own the physical asset.

Cattle

What will my returns be?

Because your return is subject to market prices, it will vary. Our projections take a host of variables into account to determine your expected internal rate of return of 13% to 15% per year.

What are the risks and how are they mitigated?

Theft and/or death of the livestock:

  • The risk is mitigated through insurance.
  • Insurance is taken on all livestock to cover the theft of and/death of livestock due to forces beyond our control.

Loss of return and capital invested:

  • The risk is mitigated through off-take agreements farmers already have in place, thus ensuring a market is created

Execution risk:

  • SV Capital has a dedicated management team that takes a hands-on approach with the investment.
  • In addition, SV capital has partnered with farmers that have extensive knowledge and experience in the farming industry.

Liquidity risk:

  • Livestock investing remains a very liquid market with the demand for meat exceeding supply.

Under the offtake agreements the farmers have in place, this also secures a market for SV Capitals product thus mitigating liquidity risk.

Why would people buy into this product instead of simply purchasing their own cattle?

Through this product you leverage of the knowledge and skills of experienced farmers who have been in the industry for a while. You do not have to worry about the maintenance or finding a market for your cattle once it is ready. We are your one stop shop in providing you investment into cattle and earning a return without having to farm them yourself.

Who owns the cattle and what happens when they are sold?

You own the physical asset. At the end of each cycle which is approximately 3 months, we sell the cattle and buy more cattle for another cycle. This process is repeated 4 times.

Can I get physical cattle?

No, the cattle will be sold to abettors, we do not have an option to give you the physical cattle.

What returns can I expect from investing in cattle?

Our financial calculations indicate an expected return of 13% – 15% internal rate of return, after all costs and fees and before tax considerations. Note though that this is a mathematical calculation and while all care is taken to ensure that this is correct, the returns may be affected by market forces such as supply and demand of beef.

How do the farmers benefit?

The farmers utilise their farms to full capacity and also are able to include these cattle in their offtake agreements. Through delivering greater number of produce, this builds the farmers profile in the market and grow operations. Our partner farms will also receive a management fee for the day to day management of the cattle.

What are the additional costs of investing in cattle?

You do not have to pay any other fees besides the management fee which is taken of the returns made per cycle. The maintenance fee to cover the feed, vaccination etc is taken off the amount invested and projected returns have taken all these costs into account.

Lamb

What will my returns be?

Because your return is subject to market prices, it will vary. Our projections take a host of variables into account to determine your expected internal rate of return of 14% to 18% per year.

What are the risks and how are they mitigated?

Theft and/or death of the livestock:

  • The risk is mitigated through insurance.
  • Insurance is taken on all livestock to cover the theft of and/death of livestock due to forces beyond our control.

Loss of return and capital invested:

  • The risk is mitigated through off-take agreements farmers already have in place, thus ensuring a market is created

Execution risk:

  • SV Capital has a dedicated management team that takes a hands-on approach with the investment.
  • In addition, SV capital has partnered with farmers that have extensive knowledge and experience in the farming industry.

Liquidity risk:

  • Livestock investing remains a very liquid market with the demand for meat exceeding supply.

Under the offtake agreements the farmers have in place, this also secures a market for SV Capitals product thus mitigating liquidity risk.

Why would people buy into this product instead of simply purchasing their own Lamb?

Through this product you leverage of the knowledge and skills of experienced farmers who have been in the industry for a while. You do not have to worry about the maintenance or finding a market for your lamb once it is ready. We are your one stop shop in providing you investment into lamb and earning a return without having to farm them yourself.

Who owns the Lamb and what happens they are sold?

You own the physical asset. At the end of each cycle which is approximately 3 months, we sell the Lamb and buy more Lamb for another cycle. This process is repeated 4 times.

Can I get a physical Lamb?

No, the Lamb will be sold to abettors, we do not have an option to give you the physical Lamb.

What returns can I expect from investing in Lamb?

Our financial calculations indicate an expected return of 14% – 18% internal rate of return, after all costs and fees and before tax considerations. Note though that this is a mathematical calculation and while all care is taken to ensure that this is correct, the returns may be affected by market forces such as supply and demand of lamb.

How do the farmers benefit?

The farmers utilise their farms to full capacity and also are able to include these lamb in their offtake agreements. Through delivering greater number of produce, this builds the farmers profile in the market and grow operations. Our partner farms will also receive a management fee for the day to day management of the lamb.

What are the additional costs of investing in Lamb?

You do not have to pay any other fees besides the management fee which is taken of the returns made per cycle. The maintenance fee to cover the feed, vaccination etc is taken off the amount invested and projected returns have taken all these costs into account.