The prices below are as at close of business
Schedule of fees, charges and maximum commissions
Please click here to view a detailed schedule of fees, charges and maximum commissions for the period ending 30 June 2015.
Equity funds provide exposure to specific sectors of the stock market such as resources, financials or industrials. They may also be managed according to specific themes. For example, value funds will have a bias towards stocks which trade on low P/E ratios and dividend yields. Greater focus will be placed on assessing normalised earnings prospects through the business cycle and quantifying them relative to current share prices. Growth funds may be more momentum-orientated favouring stocks in fast growing industries or regions. Specialist funds may be more risky than general equity funds which provide broad exposure to the market, especially if they are sector-specific.
Income funds provide exposure to either short-dated corporate paper or to longer-dated corporate and government debt, or a combination of the two. Fixed interest funds are generally seen as low risk investments and when compared to equity or property funds, this is usually true. However, the risk and return characteristics of fixed interest funds vary widely and should be understood prior to making an investment:
- Duration can introduce volatility if interest rates deviate substantially from expectations.
- Low volatility of past returns is not always a good risk indicator – this is because credit risk is only fully appreciated when corporate or governments default.
- Interest rates can also move unexpectedly and substantially in adverse market conditions which may not have been experienced recently.
- The quality of the corporate paper held, quantified by credit agencies, is an important indicator of potential defaults.
- Any potential returns in excess of cash come with risk.
These funds are South African-based but provide exposure to offshore assets. Consequently, fluctuations in the rand is a significant factor affecting returns. Another factor is the asset mix between offshore cash, bonds, property and equities. Cash and bond funds generally experience the least volatile hard currency returns, whilst those holding only offshore equity will show the greatest volatility in hard currency. International asset mix funds provide diversified exposure to offshore cash, bonds, equity and property with varying degrees of hard currency volatility.
Many investors choose to leave the decision of how much to allocate between cash, bonds, property and cash to professional investment firms.
Multi-Asset funds provide exposure to equity, property, bonds and cash, generally both locally and offshore. Investors are protected by diversification across asset classes and regions. If one asset class or region underperforms, another may outperform, thus underpinning total portfolio returns.
The volatility of asset mix funds depends on the combination of cash and bond holdings, relative to more risky holdings in equities and property. Fund mandates with high equity limits generally have higher volatility. Offshore exposure, even if only invested in cash, can introduce currency volatility as a consequence of currency fluctuations.
The Momentum Property Fund has roughly 75% of its exposure in large-cap, blue-chip property counters, but has also been selective in investing in new property listings which account for 15% of the fund. The offshore exposure is taken through Capital Shoppings in the UK and NEPI.
The research process and philosophy in property is concentrated on investing in those companies that are located in strong geographic nodes and have the potential to manage their vacancies and improve on rentals. The fund does not sacrifice yield at the expense of quality and ensures that the selected property shares are defensive through various property cycles.
Collective Investments disclosure
Collective investment schemes in securities are generally medium- to long-term investments. The value of participatory interests or the investment may go down as well as up. Past performance is not necessarily a guide to future performance. The manager does not provide any guarantee, either with respect to the capital or the return of a portfolio. For certain portfolios the manager has the right to close these portfolios to new investors to manage them more efficiently, in accordance with their mandates. Collective investment schemes are traded at ruling prices and can engage in borrowing and scrip lending. The collective investment scheme may borrow up to 10% of the market value of the portfolio to bridge insufficient liquidity. Different classes of participatory interests apply to these portfolios and are subject to different fees and charges. A schedule of fees, charges and maximum commissions is available on request from the manager, or is available on the website (www.momentum.co.za/assetmanagement). Forward pricing is used.
The portfolio valuation time is 08h00 for fund of funds, and 15h00 for all other portfolios. The transaction cut-off time for non-fund of funds is 14h00 on the pricing date, and for fund of funds it is 14h00 on the business day prior to the pricing date. MMI Holdings Limited is a full member of the Association for Savings and Investment South Africa. The complaints policy and procedure and the conflicts of interest management policy are available on Momentum Collective Investment's (RF) (Pty) Ltd website at (www.momentum.co.za/assetmanagement). Associates of the manager may be invested within certain portfolios and the details thereof are available from the manager. Foreign securities within portfolios may have additional material risks, depending on the specific risks affecting that country, such as: potential constraints on liquidity and the repatriation of funds; macroeconomic risks; political risks; foreign exchange risks; tax risks; settlement risks; and potential limitations on the availability of market information.
Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down.
Investors are reminded that an investment in a currency other than their own may expose them to a foreign exchange risk. A money market portfolio is not a bank deposit account. The price of a Momentum Money Market Fund participatory interest is targeted at a constant value. For money market portfolios the total return to the investor is made up of interest received and any gain or loss made on any particular instrument, and in most cases the return will merely have the effect of increasing or decreasing the daily yield, but in the case of abnormal losses, it can have the effect of reducing the capital value of the portfolio. For money market portfolios excessive withdrawals from the portfolio may place the portfolio under liquidity pressures, and in such circumstances a process of ring-fencing of withdrawal instructions and managed pay-outs over time may be followed. The Momentum Money Market
Fund yield illustrated in our minimum disclosure documents and quoted daily in the press is the 7-day rolling effective yield. Bond and income yields quoted in the press are historical yields based on distributions and income accruals calculated monthly while those quoted in the Weekly Income Fund Yield Summary are current running yields calculated weekly. A feeder fund is a portfolio that invests in a single portfolio of a collective investment scheme, which levies its own charges and which could result in a higher fee structure for the feeder fund. A fund of funds is a portfolio that invests in portfolios of collective investment schemes that levy their own charges, which could result in a higher fee structure for the fund of funds.
The investment manager of the portfolios pertaining to this application form is Momentum Asset Management (Pty) Ltd, registration number 1987/004655/07, and is an authorised financial services provider, FSP licence number 623.The above investment manager is an authorised financial services provider under the Financial Advisory and Intermediary Services Act (No. 37 of 2002), to act in the capacity as investment manager. The address is 13th Floor Tower 2 102 Rivonia Road Sandton 2196 . This information is not advice, as defined in the Financial Advisory and Intermediary Services Act (No. 37 of 2002). Please be advised that there may be representatives acting under supervision.
Momentum Asset Management (Pty) Ltd (registration number 1987/004655/07, VAT number 4200149096) (licence number 623) is an authorised financial services provider and an approved retirement fund administrator (registration number 24/34) and Momentum Collective Investments (RF) (Pty) Ltd (registration number 1987/004287/07, VAT number 4870151091).