Momentum Investment Consulting

An overview of Momentum Investment Consulting

Momentum Investment Consulting (MIC) is an independent, retail investor focused, investment management and consulting business within Momentum. It specialises in providing retail multi-manager and investment consulting services focused on creating solutions for the retail investment market.

  • MIC was established in 2007 and currently manages and consults on assets of R10 billion.
  • As a registered discretionary investment manager MIC is primarily focused on packaging asset allocation, portfolio construction and manager selection services into bespoke products for IFA clients.
  • The MIC team manages fund of funds and implemented model portfolios and the business counts amongst its clients some of the largest IFAs supporting Momentum Collective Investments and Momentum Wealth.
  • MIC offers a specialised and focused senior investment team of five investment professionals, representing actuarial and chartered financial analyst skills, that collectively has in excess of 25 years of multimanager investment and consulting experience.
  • MIC collaborates closely with the other investment focused businesses across the MMI group including Momentum Wealth, Momentum Manager of Managers and Momentum Global Investment Management (MGIM).

Key services provided by MIC include the following:

Review of existing portfolios

  1. Analysis of the portfolio design, asset allocation and risk/return characteristics of the current fund mix 
  2. Are there any particular qualitative or quantitative concerns with the funds used?
  3. Could the portfolios’ risk/return profile be enhanced by making any changes?

Provision of independent Investment Consulting services to a Financial Advisor’s Investment Committee

  1. Provision of detailed quantitative and qualitative research of asset classes, styles, managers and funds, both domestically and internationally.
  2. Due diligence on recommended managers and their funds.
  3. Determiniation of the optimal combinations of approved managers and funds to achieve outperformance of portfolio benchmarks and the long term objectives of the portfolio.
  4. Access to proprietary investment research done by MIC.

Discretionary Management of a bespoke, tailored portfolio

  1. Formation of a joint investment committee with the financial adviser and the implementation of a structured and robust governance and risk management framework for the management of the financial adviser’s investment portfolios.
  2. Provision of a bespoke, differentiated approach to strategic asset allocation and manager selection which provides solutions that increase the predictability of returns and reduce volatility.
  3. Formal quarterly investment committee meetings and quarterly investment reports.
  4. Tailored fact sheets and clients newsletters.
  5. Client seminars if required.  

Model Portfolios

Fund name Risk Term Quarterly Commentary Fund Fact Sheet
Momentum Growth Model Portfolio High > 5 years  
Momentum Balanced Model Portfolio Moderate - High 3 - 5 years  
Momentum Cautious Model Portfolio Low - Moderate 1 - 3 years  

CIS disclosure

Collective Investment Schemes (CIS) in securities are generally medium to long term investments. The value of participatory interests may go down as well as up and past performance is not necessarily a guide to the future. CIS are traded at ruling prices and can engage in borrowing and scrip lending. Momentum Collective Investments (RF) (Pty) Ltd (the manager) may borrow up to 10% of the market value of a portfolio to bridge insufficient liquidity. Unit trust prices are calculated on a net asset value basis, which is the total value of all assets in the portfolio including any income accruals and less any permissible deductions (brokerage, UST, VAT, auditor’s fees, bank charges, trustee and custodian fees and the annual management fee) from the portfolio, divided by the number of units in issue. A schedule of fees and charges and maximum commissions is available on request from the Manager). Commission and incentives may be paid and if so, would be included in the overall costs. Forward pricing is used. Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down.

Different classes of participatory interests apply to certain Portfolios, which are subject to different fees and charges. The Performance Fee Frequently Asked Questions document is available on the website (www.momentum.co.za/assetmanagement). 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 Standard Bank of South Africa Limited (PO Box 54, Cape Town, 8000) is the Trustee of Momentum Collective Investments Scheme. Momentum Collective Investments (RF) (Pty) Ltd (Reg No.1987/004287/07) (PO Box 7400  Centurion  0046).

The terms and conditions as well as the minimum disclosure document (MDD) for each portfolio are available on the website (www.momentum.co.za/assetmanagement). Associates of the manager may be invested within certain portfolios and the details thereof are available from the manager.

A money market portfolio is not a bank deposit account. The price of a participatory interest is a marked-to-market value. 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. 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 investment manager of this portfolio is Momentum Outcome-based Solutions (Pty) Ltd, registration number 2004/023064/07 and is an authorised financial services provider, FSP licence number 19840, under the Financial Advisory and Intermediary Services Act (No. 37 of 2002), to act in the capacity as investment manager. 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.


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                 Momentum Collective Investments (RF) (Pty) Ltd (registration number 1987/004287/07, VAT number 4870151091).
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