Terms for Momentum Collective Investments

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A. Our agreement

  1. Momentum Collective Investments (RF) (Pty) Ltd is an authorised manager of a collective investments scheme registered in terms of the Collective Investments Schemes Controls Act, 45 of 2002 (Cisca).
  2. Standard Bank of South Africa Limited acts as the trustee of the Momentum Collective Investments (RF) (Pty) Ltd scheme.
  3. You are a holder of participatory interests (units) in collective investment schemes in securities that Momentum Collective Investments (RF) (Pty) Ltd administers and manages.
  4. This agreement is subject to the provisions in Cisca, the deed and applicable supplemental deeds and minimum disclosure documents (MDDs).
  5. This agreement is subject to the laws of the Republic of South Africa and is subject to the Income Tax Act, 58 of 1962. We will deduct tax where applicable.
  6. We are committed to comply with anti-money laundering, anti- bribery and anti-corruption legislation. This means we can ask you for additional information when needed.
  7. We will review your application when we receive it with all the supporting documents. We will debit the investment amount from your bank account or ask you to transfer the investment amount to us in accordance with your instruction. When we have confirmed that we have received the investment amount, your application will be accepted.
  8. We can decide not to accept your application.
  9. We have an obligation to ensure that we comply with the provisions of Cisca and the deed of the scheme. In order to ensure that we act in the best interests of all our investors, we may from time to time and in our sole discretion take the necessary action as required in order to fulfil our regulatory obligations.
  10. We will recover any amount of money paid to you, which you are not entitled to for whatsoever reason, including interest on the amount where applicable.
  11. We can change the terms of this agreement, but we will give you reasonable notice before we do this.

B. Your investment

  1. You are applying to invest in the portfolio(s) that we administer and manage.
  2. The price of a unit in the collective investment scheme portfolio is calculated daily, as stated below. This price applies to instructions accepted on the same business day.
  3. We calculate the net asset value (NAV) based on the total value of all assets in the portfolio. This would include any income accruals, less any acceptable deductions from the portfolio, divided by the number of units in issue. Examples of acceptable deductions are, including but not limited to, brokerage fees, securities fees, transfer fees, tax, auditor’s fees, bank charges, trustee or custodian fees and service charges.
  4. Our NAV calculation is based on the forward pricing principle. This means we do not determine the price of a portfolio during the trading day but at the fixed times listed below:
    • 4.1 For fund of funds and feeder fund portfolios the daily valuation time is 24:00.
    • 4.2 For Momentum MoM-branded portfolios the daily valuation time is 17:00.
    • 4.3 For money market portfolios and all other portfolios the daily valuation is 15:00.
    On the last business day of every month we value fund of funds and feeder funds at 24:00 and all other portfolios at 17:00.
  5. Effective annual cost (EAC) is a measure that the Association for Savings and Investments South Africa (Asisa) introduced to enable you and your financial adviser to compare charges and their effect on your investment returns in a meaningful way. It highlights the different role players involved in your investment and the effect of each role player’s fees over the investment term. Visit momentuminv.co.za to review the EAC on the portfolio(s) that you want to invest in.
  6. The value of unit prices may go down as well as up. Past performance is not necessarily a guide to future performance.
  7. Foreign securities in portfolios may pose additional material risks, depending on the specific risks affecting that country. These include but not limited to 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 and foreign currency exposure exposes you to foreign exchange risk.
  8. Income distributions are made at regular intervals for all portfolios. We declare these distributions as the deed and applicable supplemental deeds specify. Refer to the latest MDDs available at momentuminv.co.za for more details. We will reinvest distributions below R250 into the portfolio.
  9. If you do not choose a pay-out option for your distribution on your application form, we will reinvest it in your relevant portfolio(s).
  10. Any capital gain realised on the disposal of a participatory interest in a collective investment scheme is subject to capital gains tax (CGT). We report using the weighted average cost method for CGT purposes.
  11. Momentum Collective Investments (RF) (Pty) Ltd holds professional indemnity and fidelity insurance cover as required by law.
  12. Cool-off rights are not applicable to investments in collective investment scheme portfolios.
  13. You cannot change the ownership of this investment agreement. You can transfer units from this investment to another investment by completing a transfer of units form.
  14. You cannot appoint a beneficiary. The proceeds of this investment will form part of your estate upon your death.
  15. You can cede this investment to a registered financial services provider as security.

C. Investment amounts

  1. We only accept investments in South African rand (ZAR).
  2. The minimum investment amounts per portfolio are:
    • 2.1 Initial lump sum of R2 000
    • 2.2 Additional lump sum of R1 000
    • 2.3 Regular investment of R250 per month, payable by debit order only.
  3. Where you have invested a lump sum amount and then choose to sell or switch units from the portfolio(s), and the investment value falls to below R2 000, without any active regular investment, we may end your investment and pay you the balance. Or you can buy additional units so that the minimum balance in the portfolio is more than R2 000
  4. You are required to use your RU investment number as reference for all direct deposits and electronic funds transfers (EFTs) so that we can match your deposit to the correct investment.
  5. If you instruct us to collect money from your bank account, your bank account will be debited within 2 business days after acceptance of your instruction. We are limited to a maximum amount of R1 000 000 per collection.
  6. Electronic fund/internet transfers (EFTs) paid to our bank account can take up to 3 business days to reflect in our bank account.
  7. We place a waiting period on the units that we buy with the money we receive from you. You cannot withdraw money nor do a unit transfer during this waiting period. The waiting period will vary depending on the payment method you use.
    • 7.1 If you buy units with a direct debit, regular debit order or direct deposit, you can only sell or transfer the units after 40 days.
    • 7.2 If you buy units with an electronic/internet transfers (EFT), you can only sell or transfer the units after 7 days.
  8. If your bank rejects your investment payment, you will carry any risks regarding market movements and will be liable for any costs incurred.

D. Processing your instructions

  1. All documentation and communication that you send us must be clear and legible. A confirmation or delivery receipt is not proof that it is clear and legible. You must contact us after sending an instruction to confirm that we have received your instruction.
  2. You instruct us to act on your investment instructions completed on the relevant form that we receive by fax, email, website or any other electronic medium with regard to your investment in portfolio(s) administered and managed by us. You agree that any electronic record of investment instructions and applications that we have received and processed will be valid proof of the contents of such instructions and applications.
  3. We will not incur any liability of any nature in respect of any transfer, payment or other act done in accordance with such instruction(s) and/or application(s) notwithstanding that it shall be shown that same was not signed, sent or emanated by you. It is also agreed that this authorisation shall remain in force until notice in writing of its termination is received by us and any such notice shall be without prejudice to the completion of transactions already initiated pursuant to this authorisation.
  4. The following cut-off times apply to investment instructions:
    • 4.1 For money market portfolios the daily cut-off time is 10:00.
    • 4.2 For all other portfolios the daily cut-off time is 14:00.
  5. If we cannot do the transaction on the same day, it will take place on the next business day or at the earliest possible opportunity according to legislation, our administration processes and any other collective investment scheme limitations. We will determine the portfolio’s price at the confirmed day’s NAV unit price.
  6. We will only make payments into your own bank account. No third- party payments are allowed. We will pay you within 14 days of receiving the required documentation.
  7. Where the units you want to sell have been ceded, you must give us written consent of the cessionary, or proof that the cession has been cancelled, before we can process the instruction.
  8. If we receive conflicting instructions, we reserve the right not to act on such instructions.
  9. We will not be held liable for any claims, losses and/or damages whether indirect, special or consequential and/or any expense of any nature that you may incur or suffer as a result of you not adhering to any of the above.

E. Switch and withdrawals

  1. A switch is the selling of units in one portfolio and investing the proceeds in another portfolio.
  2. A withdrawal is when you sell units in a portfolio(s) and we pay the rand value to you.
  3. The minimum withdrawal amount is R250.
  4. If your bank rejects your withdrawal or income amount for any reason, we will reinvest the money into the relevant portfolio(s). You will carry any risks regarding market movements and will be liable for any costs of the reinvestment.
  5. Portfolio(s) may have liquidity constraints due to market fluctuation and other market conditions which may result in delays or the inability to process your instruction.
  6. Collective investment schemes are generally medium- to long- term investments. We have a fiduciary duty to ensure that each collective investment scheme portfolio is administered honestly and fairly and in the interest of all investors. Excessive switching between portfolios impairs the ability of the investment manager to deliver the desired outcomes for a portfolio(s) and it is not in the best interest of all investors. As such, in the event that we are of the opinion that your switching activity may be prejudicial to other investors in the relevant portfolio(s), we may restrict this activity.
  7. We may take the relevant action as required, to make sure that we comply with the provisions of Cisca and the main deed of the scheme.

F. Ring-fence

  1. A large-scale selling of units above a certain threshold may cause ring-fencing in a portfolio.
  2. Ring-fencing are the separation of large-scale trades and the delayed sale of units in a collective investment scheme. This is to make sure that the sale of a large number of units will not force us to sell the underlying investments at a price that could have a negative impact on investors.
  3. We may delay the payment or reinvestment of the proceeds of the sale of units.
  4. We cannot be held liable for any market movements as the value used will be based on the date of completing the sell instruction.

G. Portfolio charges and total expense ratio

  1. A service charge for each portfolio is accrued daily and we charge it monthly based on the market value of the portfolio. We usually deduct the service charge from the income that the portfolio received.
  2. A portfolio may have a yearly performance-based fee that shall be a variable amount that may either increase or decrease. Refer to the latest MDD for details at momentuminv.co.za
  3. The total expense ratio (TER) of a portfolio is a measure of how much it costs to manage the portfolio, and how this cost reduces the value of the portfolio. It is expressed as a percentage of the daily average value of the portfolio(s) and calculated over a specific period for example a financial year. Typical expenses that are deducted from a portfolio include, but are not limited to, yearly service charges, performance fees, taxes, trustee fees and audit fees. We show the latest TERs on the MDDs.

H. Your financial advisor

  1. You could benefit from appointing a financial adviser who can give you ongoing investment advice for this investment.
  2. Your financial adviser must be registered in terms of the Financial Advisory and Intermediary Services (Fais) Act and must, in addition be registered with us.
  3. We verify each financial adviser’s license category and underlying financial product categories according to section 7(3) of the Fais Act.
  4. We use third parties to verify Fais licenses, but we cannot guarantee it and are not responsible if the information is wrong and causes a delay in carrying out an instruction.
  5. We are not responsible for any loss or damages caused by your financial adviser not being appropriately licensed for the advice and intermediary service provided.
  6. The license requirements apply to new investments and to any changes on your investment.
  7. If you have appointed a financial adviser, we can pay initial and ongoing adviser fees within limits, by selling units from your investment at the prevailing portfolio(s) unit price.
  8. You can request us to stop the payment of adviser fees if your financial adviser does not meet his or her obligations, or when your mandate ends.
  9. Only a mandated Category II financial services provider (FSP) can instruct us on your behalf. We require a copy of the mandate to verify the appointment of such an FSP.
  10. We will make statements, documents and information about your investment available to your financial adviser.
  11. Financial advisers can ask us for access to your investment information through a third-party information provider. We are not responsible for any loss or claim that may arise because we made your investment information available to your appointed financial adviser through such a provider.

I. Communication

  1. We will email your investment statement every 3 months.
  2. We will email your tax certificates IT3(b) and IT3(c) every year after the end of the tax year.
  3. You can also request statements or tax certificates from us or view it online on momentum.co.za.
  4. We must have up-to-date contact information for you and your appointed authorised signatory, if applicable.
  5. If you do not inform us of any personal detail change and we are unable to reach you on the contact details provided, your investment may become unclaimed and we will appoint a tracing agent to try and trace you. Any costs associated with tracing will be for your account and we may deduct it from the value of your investment.

J. Complaints

  1. You can contact our client contact centre and we will follow our complaints resolution process. A copy of our process is available on request. We show our contact details in section K.
  2. We have a conflict of interest management policy. A copy is available at momentuminv.co.za.
  3. If you have any complaints about the advice you have received, contact the Ombud for Financial Services Providers.

K. Contact details

       Momentum website:                    momentum.co.za

       Client contact centre

       ShareCall:                                      0860 111 899
       International number:                    +27 (0)12 675 3002
       Fax:                                               +27 (0)12 675 3889
       Email:                                            ci.clientservice@momentum.co.za
       Post:                                              PO Box 7400, Centurion, 0046

       Trustee
       Standard Bank of South Africa Limited
       Address:                                         20th Floor Main Tower, Standard Bank
                                                              Centre, Adderley Street, 
                                                              Cape Town, 8001

       Ombud for Financial Services Providers
       Telephone:                                     +27 (0)12 470 9080
       Facsimile:                                      +27 (0)12 648 3447
       Email:                                             info@faisombud.co.za

       Postal:                                            PO Box 74574, Lynnwood Ridge, 0040








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