Wealth Investment Series

Transcription

1 Wealth Investment Series Flexible Investment Option

2 Are you looking for maximum liquidity and investment flexibility? The Flexible Investment Option gives you the flexibility to customise an investment portfolio, build a long-term investment strategy or invest for the short or medium term. Product Features Cash Management Solutions you can choose from two low risk funds for the cash portion of your investment and for unique options in terms of managing the transactions of your investment. Flexible investing a range of underlying investment options from Core Portfolio or FundShop make it easy to build a diversified portfolio. Investment liquidity you have full access to your capital at all times. No investment restrictions or product terms apply. Income requirements investors can receive an income in the form of regular withdrawals. Exemptions as an individual investor, you can use your annual interest income and Capital Gains Tax exemptions. Different investor types the Flexible Investment Option is not only suited to individual investors but also to trusts, companies and close corporations. page-01 Momentum Administration Services is authorised as a financial services provider. FSP Registration no. 657

3 Investment Options Momentum Wealth provides simple, cost-effective investment solutions designed to cater for all market conditions, enabling you to meet reasonable return expectations. We offer you a simplified route to choosing the funds and portfolios that best suit your risk and return objectives. You can select local and international funds from our Managed Solutions, Core Portfolio and/or FundShop ranges, which provide diversification across asset classes, funds, fund managers, risk profiles and currencies. FLEXIBLE INVESTMENT OPTION Managed Solutions Removing the complexity of fund choice a simplified range of riskprofiled fund solutions built with specific return objectives and time frames in mind. International Growth Solutions Core Portfolio Access to the four main pillars of investing: equities, bonds, cash and property - managed by leading local and international fund managers. Cash Management Solutions Local Core Portfolio International Core Portfolio FundShop* One of the largest ranges of local and international unit trust funds in South Africa as well as niche fund managers, specialist funds, mandates and investment assets. Open architecture local unit trust funds Open architecture international unit trust funds Money Market Funds Fund of Funds Direct Shares Exchange Traded Funds Essential Portfolio Capital Guarantee Term Certain Annuity Please refer to our other literature for detailed information on the above fund choices and applicable fees. Flexible Investment Option * Some of the investment components in FundShop may be restricted to certain financial advisers or investors due to license requirements or Momentum s product rules. page-02

4 Introducing Cash Management Solutions To help you structure your investment choices and to satisfy the cash requirement of your investment, you can choose from two low risk funds in Cash Management Solutions. The RMB Money Market Fund is a traditional money market fund and is suited to ultra conservative investors due to the stable, low risk nature of the fund. The fund is ideally suited to the transaction-related activity taking place on your investment and can specifically be used in order to: Income Management You can choose to receive income from all underlying funds in your portfolio or you can specify one or more funds from which income should be paid proportionately. If you activate the top up functionality, Momentum Wealth monitors your chosen income fund(s) on a monthly basis. If there is insufficient capital to meet your income requirements for four months, units will be cancelled proportionately from your underlying unit trust funds to cover approximately 12 months income. establish an account from which all ongoing administration and advice fees are paid. create an account from which your income can be paid. set up an account that may be used to phase an investment into a particular investment strategy over time. add top-up functionality in order to cover the ongoing fees associated with your investment or to top up your income automatically. The Momentum Cash Management Fund (CMF) is a unit trust fund managed by RMB Asset Management that aims to provide a high yielding, cash-type alternative to local money market funds or accounts. It targets top quartile money market returns over a rolling 12-month period. This top quartile return target also serves as the benchmark against which the fund will be measured. The fund is registered as a varied specialist fund in the respective ACI category (Fixed Interest: Varied Specialist Funds). page-03

5 Tax and Estate Planning Investment returns are subject to taxation after taking into account your annual interest and Capital Gains Tax exemption. Under current legislation, dividends from local unit trust funds are not taxed in South Africa. For estate planning purposes, ownership of the Flexible Investment Option can be passed directly to your beneficiaries on instruction of the executor. Provided your estate is sufficiently liquid to cover all other obligations. Statements and Fund Switching It is important for you to regularly monitor the performance of your investment and chosen underlying funds. Together with your financial adviser you need to ensure that the overall asset composition of your portfolio is in line with your investment objectives and identified risk profile. Momentum Wealth makes it easy for you to monitor your investment by offering online, internet-enabled investment statements and functionality. This allows you to view your asset allocation, the performance of your portfolio and gives you a complete breakdown of dividends and interest declared and accrued, withdrawals or additional investments made and any fees or income paid from the investment. When rebalancing your portfolio or switching between funds, Momentum Wealth offers internet switching, which makes rebalancing a simple, timeous and cost-effective process. Financial advisers with either a discretionary mandate or signed instruction from an investor can execute a switch instruction online. A full audit trail is retained for security of each transaction. Online switching is cost-effective as no switch fees are charged for online transactions. Flexible Investment Option page-04

6 Summary of features Term Minimum age at inception Maximum age at inception Product minimums Fund minimums Contributions Withdrawals Income Loan International investing Cession Estate planning Taxation Cancellation Phasing-in There is no term applicable to this product. Investors have access to their capital whenever required, subject to any stipulations of the dealing dates of their chosen funds as well as any underlying guarantees chosen. There is no minimum age applicable to this product. There is no maximum age applicable to this product. R lump sum for local investments. R lump sum for international investments*. R1 000 for regular investments (monthly). Local R100 per fund net of initial fees. International R per fund net of initial fees*. Investors can add money to their investment at any time through regular or lump sum investments. Investors can withdraw their capital at any time subject, to the information contained above in Term. A minimum R investment must remain in the contract. Investors can receive an income in the form of regular withdrawals and can choose the fund(s) that the income should be paid proportionately from. In addition, investors can opt to have their chosen fund(s) automatically monitored and topped up to ensure that the balance is sufficient to cover their income requirements. Investors cannot receive a loan against the Flexible Investment Option. As a liquid investment product, investors have full access to their capital when required. Individual investors can use their individual offshore allowance to invest in international unit trusts and other funds. Investors can also invest in ZAR-denominated international funds. Investors can cede their investment as collateral security. Once ceded, all future transactions will require the approval of the cession holder. On death, the investment will be dealt with in terms of the investor s Will and/or in accordance with the instructions of the executor of the estate. Under current legislation, local dividends received from underlying unit trust funds are not taxable. Interest distributions are subject to tax at an investor s marginal tax rate. A Capital Gains Tax event arises when units are sold. Individual investors may use their annual interest income and Capital Gains Tax exemption to offset tax on their investment. Momentum Wealth provides investors with an IT3B certificate that indicates the interest and dividend income earned as well as an IT3C certificate showing any capital gains made on the investment. Investors can withdraw their investment by cancelling all the units in their portfolio. Investors can phase-in their investment over a period of 2 weeks to 24 months. Type of investors allowed for this product Individuals Close corporations Companies Trusts * Subject to international fund minimums page-05

7 About us Momentum Administration Services (Pty) Ltd is registered as an administrative financial services provider in terms of the Financial Advisory and Intermediary Services Act of The products administered by Momentum Administration Services (Pty) Ltd are marketed under Momentum Wealth. Momentum Wealth specialises in the administration of insurance, pension and investment products and acts in an execution only capacity. Momentum Wealth does not provide financial advice and may not, in terms of legislation, act as a financial adviser. Momentum Wealth is committed to providing you with superior investment products and excellent service. We trust that the information contained in this brochure assists you in making informed investment and retirement choices together with your financial adviser. The investment industry is fairly dynamic and, as such, there will be changes and updates to the information supplied to you in this brochure. Please feel free to contact us: We are situated at 268 West Avenue Centurion 0157 Write to us PO Box 7400 Centurion 0046 Call us Wealth Services +27 (0) ShareCall Number us wealthservice@momentum.co.za Visit us on the Web Disclaimer Opinions expressed in this document are those held as at the date appearing in this material only. The information and opinions provided are of a general nature and are not intended to constitute advice as contemplated in the Financial Advisory and Intermediary Services Act. The information used to prepare this document is from third party sources and whilst every effort has been made to ensure the accuracy and validity of the data, Momentum cannot guarantee the accuracy or completeness of such information, nor can it guarantee that such information is always up to date. Momentum shall not be liable or responsible for any use of this document or to any other person or entity for any inaccuracy of information contained in this document or any errors or omissions in its content, regardless of the cause of such inaccuracy, error or omission. This publication is not intended to give legal, tax, accounting, exchange control or any other professional advice. No reader should act on the basis of any matter contained in this publication without considering and taking appropriate advice on their own particular circumstances. Past performance is not necessarily indicative of future performance. An investor whose reference currency differs from that in which the fund is denominated may be subject to exchange rate movements, which may cause fluctuations in the value of their investments. In addition, investments involving exposure to a currency other than that in which the fund is denominated may also cause values to fluctuate. Momentum and/or any of its affiliates or associates cannot guarantee the price of any ETFs purchased via Momentum. ETFs trade intraday and as such the price fluctuates on a continuous basis. While Momentum and/or any of its affiliates or associates will endeavour to purchase the ETF at the closing price of the day this cannot be guaranteed. Momentum reserves the right to apply Market Value Adjustors in certain circumstances. For more information relating to the application of Market Value Adjustors please refer to the document called Principles and Practices of Financial Management of Momentum s discretionary participation products at Flexible Investment Option page-06

8 Momentum 268 West Avenue Centurion 0157 PO Box 7400 Centurion 0046 South Africa Tel +27 (0) Fax +27 (0) / /1207/FIO