Collective Investments terms and conditions

Investors must read the applicable terms and conditions outlined below as well as the necessary FICA and new business requirements before making a new investment.

  1. For the purposes of this application form, an Investor means the holder of a participatory interest/s in a collective investment scheme in securities administered and managed by Momentum Collective Investments (RF) (Pty) Ltd (“the Manager”), which is registered with the Registrar of Collective Investment Schemes.
  2. Net asset value (NAV): Prices are calculated on a NAV basis, which is dependent on the total value of all assets in the Fund including any income accruals and less any permissible deductions from the Fund divided by the number of participatory interest/s in issue. Permissible deductions include brokerage, securities transfer tax, auditor’s fees, bank charges, trustee/custodian fees and the service charge levied by the Manager.
    Service charge: The service charge for each Fund is accrued daily and levied monthly on the market value of the Fund. Funds may have a performance-based annual fee, which shall be a variable amount that may either increase or decrease, depending on whether the Manager has added or detracted value for the Fund relative to the Fund’s benchmark. Refer to the latest minimum disclosure documents (MDDs) for more details. The service charge is usually deducted from the income received by the Fund/s.
  3. Performance fees: Certain Funds have performance fees which are detailed in the Manager’s Fund Summary Sheet, available on www.momentum.co.za/assetmanagement and on the latest MDD. Investors may carry a lower proportion of the performance fee relative to performance enjoyed, while other Investors may carry a higher proportion of the performance fee relative to performance enjoyed. Where underlying Fund/s charge implicit performance fees (i.e. implicit in their unit prices), Investors may carry these performance fees regardless of whether the top-tier fund or mandate has outperformed its own benchmark.
  4. Total expense ratio (TER): The TER of a fund is a measure of the fund’s assets that were relinquished as operating costs expressed as a percentage of the daily average value of the fund calculated over a period of usually a financial year. Typical expenses which are deducted from a fund include annual service charges, performance fees, taxes, trustee fees and audit fees. The latest TERs are displayed on the MDDs.
  5. Switch: A switch involves selling participatory interests in one fund and investing the proceeds in another fund. Refer to the Manager’s Switch Form for further details as well as applicable fees.
  6. Income distributions are made at regular intervals for all Fund/s. Fund/s declare distributions as specified in the Deed and applicable supplementary deed/s. Refer to the latest MDDs for more details. Distribution payments will only be made if the value of the payment is above R20.
  7. The Investor applies to invest in the Fund/s administered and managed by the Manager in accordance with the provisions of the Deed and any supplemental deed/s executed thereafter at the NAV price as at close of business on the date of receipt of the money by the Manager from the Investor.
    7.1 In the case of an initial investment, no investment application shall be considered or processed unless the Manager is in receipt of the following:
    • 7.1.1 A fully completed application form
    • 7.1.2 Proof of receipt of money eg: deposit slip or proof of electronic transfer
    • 7.1.3 Investment instructions
    7.2 The requirements as stipulated in clause 7.1 above must be in possession of the Manager before the daily cut-off time of 14h00. If the requirements are only satisfied after 14h00, the following working day’s NAV price shall be used to calculate the purchase value of the investment and the investment will be processed on such following working day. In instances where the Investor is applying for subsequent investment/s, the Investor must forward proof of deposit or bank confirmation slip to the Manager as well as investment instruction completed on the relevant form by facsimile or email to the Manager before the cut-off time of 14h00. Provided the Investor has forwarded proof of deposit or bank confirmation slip and instructions, the application will be processed on the next working day.
  8. Foreign investors use the same bank account details noted on the application forms and are issued with a swift code by the bank. Deposits and payments will only be received in South African rands.
  9. The Investor authorises the Manager to act upon investment instructions completed on the relevant form received by facsimile, email, internet site or any other electronic medium with regard to any investment in Fund/s administered and managed by the Manager. The Investor confirms that any electronic record of investment instructions and applications received and processed by the Manager as aforesaid will constitute prima facie proof of the contents of such instructions and applications and the Investor indemnifies the Manager against any losses, claims or damages arising from acting on such instructions and/or applications and confirms that the Manager shall not incur any liability of whatsoever nature in respect of any transfer, payment or other act done in accordance with such instructions and/or applications notwithstanding that it shall be shown that same was not signed, sent or emanated by the Investor. It is also agreed that this authorisation shall remain in force until notice in writing of its termination is received by the Manager and any such notice shall be without prejudice to the completion of transactions already initiated pursuant to this authorisation.
  10. All documentation and/or communication received by any form of electronic medium by the Manager from the Investor, including but not limited to, application forms, specific documents required or requested by the Manager, investment instructions completed on the relevant form, proof of deposit or bank confirmation slip and so forth, must not be assumed to be in the possession of the Manager. The Investor must after forwarding an instruction to the Manager’s Client Service Centre number as stipulated in the application form confirm that the Manager is in receipt of such instruction. The Manager shall not be held liable for any and all claims, losses and or damages whether indirect, special or consequential and or any expense of any nature whatsoever which the Investor may incur or suffer as a result of the Investor not adhering to the aforesaid.
  11. As stipulated in clause 7.1 above, this application form will not be processed before the Manager receiving all of the relevant documentation required, as set out in the Financial Intelligence Centre Act, 38 of 2001 (FICA) and new business requirements document. The Manager reserves the right to request further documentation not referred to in this document, as and when applicable and further reserves the right not to process any Investment instruction/s should any documentation which the Manager requests and or requires; not be provided by the Investor to the Manager. The Manager shall not be held liable for any and all claims, losses and/or damages whether indirect, special or consequential and/or any expense of any nature whatsoever which the Investor may incur or suffer as a result of the instruction not being process timeously by the Manager due to the aforesaid.
  12. The Investor undertakes to send the original documents as set out in the FICA and new business requirements document to inform the Manager when any contact details and or other pertinent information has changed and to forward such information and necessary documents to the Manager within 14 (fourteen) days of such change occurring. In instances where the Investor has failed to timeously provide the aforesaid details and documents to the Manager and should the Manager need to trace the Investor, any and all costs associated with tracing the Investor shall be for the account of the Investor.
  13.  In the event that the Investor provides instruction for the repurchase of participatory interest/s in a particular Fund, payment will only be made into the Investor’s bank account. Payment will be effected within 14 (fourteen) days of the required documentation reaching the Manager. Where the participatory interests tendered for repurchase have been ceded, the written consent of the cessionary, or alternatively, proof that the cession has been cancelled must be provided before the repurchase can be processed. The Manager will under no circumstances make third-party payments. Furthermore, in the event of the Manager receiving conflicting repurchase instructions, the Manager reserves the right not to act on such instructions received and the Manager shall not be held liable for any and all claims, losses and/or damages whether indirect, special or consequential and/or any expense of any nature whatsoever which the Investor may incur or suffer as a result of the instruction not being process timeously by the Manager due to the aforesaid.
  14. Without prejudice to any other rights, which the Manager may have in terms hereof or at law, the Investor agrees that the Manager shall be entitled to recover from the Investor any amount of money paid to the Investor, which the Investor is not entitled to for whatsoever reason, including interest thereon.
  15. The Investor’s domicilium citandi ex executandi for all notices and processes to be given in terms hereof, is the physical address detailed on this application form or as notified in writing to the Manager.
  16. Repurchase and income distribution payments are not transferable (will only be paid to the bank account in the name of the Investor) and can only be made electronically.
  17. Any capital gain realised on the disposal of a participatory interest in a collective investment scheme is subject to capital gains tax (CGT). The Manager is obliged to report on the weighted average cost method for CGT purposes.
  18. Notwithstanding anything to the contrary contained in the application form, the Manager reserves the right to amend any provision of the terms and conditions contained herein and/or amend any other provision as contained within the application form upon reasonable written notice to the Investor of such amendment and/or cancellation.
  19. Notwithstanding anything to the contrary contained in the application form, where an Investor has made an investment via lump sum investment and elects to repurchase participatory interest/s in the Fund resulting in the Investor’s value in such Fund after the repurchase to fall below
    R2 000.00, any repurchase instruction will result in the total balance being redeemed alternatively, the Investor may make an additional investment into the Fund by purchasing additional participatory interest/s to ensure that the minimum balance in the Fund exceeds R2 000.00.
  20. All direct deposits and EFTs must clearly reference the RU contract number to ensure that the deposit is matched to the correct contract. Where the Manager has been instructed to collect money from the bank account, bank accounts will be debited within 2 (two) working days. The Manager is limited to a maximum amount of R1 000 000.00 per collection. Money will only be invested once the Manager’s requirements have been satisfied. Participatory interests bought with a direct debit can only be disinvested or switched after 7 (seven) days. Electronic/internet transfers can take up to 2 (two) working days to appear in the Manager’s account.
  21. The Investor confirms that neither the Manager nor any of its employees have provided any advice on the suitability of this investment to the Investor’s objectives and financial needs.
  22. Cooling off rights are not applicable to investments in collective investment schemes.
  23. Client statements are issued bi-annually when distributions are paid. Client statements are also available upon request from the Manager.
  24. Tax certificates (IT3B and IT3C) are sent to clients annually after the tax year.
  25. Complaints may be addressed to the Manager at the address provided on the application form. The Manager’s Complaints Policy is available on the website at: www.momentum.co.za/assetmanagement
  26. The Standard Bank of South Africa Limited is the Trustee of the Momentum Collective Investments Scheme, 20th Floor Main Tower, Standard Bank Centre, Adderley Street, Cape Town, 8001.

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