In thousands Actual (113) 6m MA (198) 12m MA (191) Dec-07 Dec-09 Dec-11 Dec-13 Dec-15 Dec-17

Transcription

1 may 2018

2 In thousands Actual (113) 6m MA (198) 12m MA (191) -800 Dec-07 Dec-09 Dec-11 Dec-13 Dec-15 Dec-17

3 40 30 Eurozone France Italy Portugal Germany Spain Greece Ireland Mar-07 Mar-09 Mar-11 Mar-13 Mar-15 Mar-17

4 Other goods (36%) Fuels and lubricants (3%) Electricity and gas (3%) Food and non-alcoholic beverages (10%) Services (48%) CPI Total value of US trade in goods with China (US$ billions) Exports Imports -2.0 Jan 2013 Jul 2014 Jan 2016 Jul

5 60 % Zuma job approval Economic optimism 0 Q Q Q Q Q3 2017

6 Indexed to 100 ALSI ALBI Listed property Cash Apr May May May 18

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8 Momentum enhanced lifestage portfolio range returns for may 2018 Lifestage progression The portfolio range has a lifestage model, which allows a member of a retirement fund to switch from a more aggressive investment portfolio with longer terms to retirement to more conservative and, ultimately, defensive portfolios as a member approaches retirement. The lifestage model uses a combination of asset classes, managed by multiple investment managers with different investment strategies to achieve its objectives. The lifestage philosophy uses term to retirement as a proxy for the risk a member is able to adopt. This means, for example, the asset classes in which members of a retirement fund would invest 30 years from retirement will have a different emphasis from those closer to retirement. It stands to reason that when a member of a retirement fund has a long-term investment horizon, the member should be invested in growth asset classes, which would include a significant allocation to higher yielding asset classes and strategies also characterised by a higher level of risk (such as local equities and property as well as global equities). Although these asset classes are volatile, they provide returns above inflation over the long term. However, as a member moves to a medium-term investment horizon, the exposure to volatile asset classes should be gradually reduced to protect members in a retirement fund from being exposed to unnecessary volatility. Momentum s purpose is to enhance the lifetime financial wellness of people, their communities and their businesses, building a reputation for innovation and trustworthiness. In this way, we aim to become the preferred lifetime financial wellness partners to our clients. In keeping with the financial wellness framework, we have developed an investment philosophy that maximises the probability of you achieving your unique investment goals. We call this investment approach Momentum Investments outcome-based investing. In response to the ever-evolving investment landscape, we manage our portfolios in such a way that they set their sights beyond mere benchmarks and instead focus on the things that matter the most to you ensuring we maximise the probability of you achieving your investment goals. This portfolio range is managed using the outcome-based investment philosophy. The below new fee scale is effective 1 October The asset management fees exclude performance fees where applicable, as well as investment management fees recovered by the underlying investment managers within the portfolio.

9 Investment portfolio allocation Portfolio Building block Term to retirement Momentum Enhanced Lifestage Accumulator Momentum MoM Enhanced Factor 7 Portfolio More than seven years to retirement Momentum Enhanced Lifestage Builder Momentum MoM Enhanced Factor 6 Portfolio Five to seven years to retirement Momentum Enhanced Lifestage Consolidator Momentum MoM Enhanced Factor 5 Portfolio to five years to retirement Momentum Enhanced Lifestage Defender Momentum MoM Enhanced Factor 3 Portfolio Less than three years to retirement Investment returns summary Portfolio returns 1 Five Since month months year years years inception Momentum Enhanced Lifestage Accumulator -2.33% -1.11% 4.28% 5.39% 9.79% 14.41% Benchmark -3.26% -1.43% 5.09% 5.95% 10.06% 14.57% Momentum Enhanced Lifestage Builder -1.93% -0.51% 4.69% 5.60% 9.39% 13.63% Benchmark -2.82% -0.89% 5.21% 6.13% 9.70% 13.61% Momentum Enhanced Lifestage Consolidator -1.74% 0.01% 4.91% 5.92% 8.64% 11.05% Benchmark -2.50% -0.51% 5.42% 6.19% 8.75% 11.42% Momentum Enhanced Lifestage Defender -1.00% 0.94% 5.40% 5.98% 7.38% 10.68% Benchmark -1.45% 0.40% 5.70% 6.28% 7.73% 9.87% Key: 1. The first investment from FundsAtWork in this portfolio was 1 March The inception date of the portfolios is 1 July 2011 and actual portfolio and benchmark returns have been used since then. Portfolio and benchmark returns for longer periods are based on mappings from certain old portfolios to the new portfolios and details of these old portfolios are on the individual fund fact sheets.

10 Momentum Enhanced Lifestage Portfolio Range Momentum Enhanced lifestage Accumulator Portfolio May 2018 Investment strategy This investment portfolio is aimed at members of a retirement fund who are in the accumulation phase of investing. These members would have a long-term investment horizon and should be invested in growth asset classes. To achieve this growth, the portfolio is benchmarked against an 85% allocation to local equities and property as well as global equities. Although these asset classes are volatile, they provide returns above inflation over the long term. The portfolio incorporates all opportunities identified and performance fees may be paid within investment mandates, should they sufficiently enhance investment returns after fees. Investment portfolio mandate The long-term return objective of this portfolio is inflation plus 7% a year over seven-year rolling periods. All combinations of asset classes are considered and an optimum allocation is selected to achieve this objective with a high degree of certainty. Alternative asset-class opportunities are continually investigated. The risk of exposure to losses in the short term is continually managed by maximising diversification to predominantly active strategies within specialist investment mandates within each asset classes. This portfolio is managed in accordance with the investment limitations set out in Regulation 28 of the Pension Funds Act. Benchmark allocation Asset Class Local equities Local property Local bonds Local ILB Global equities Global bonds Investment returns Allocation Benchmark 55.00% FTSE/JSE Shareholder Weighted Capped Index 10.00% FTSE/JSE SA Listed Property Index 5.00% JSE ASSA All Bond Index 5.00% JSE ASSA Inflation-linked Government Bond Index 20.00% MSCI All Countries World Index 5.00% Citigroup World Government Bond Index Month Months Year Five Since Inception Portfolio -2.33% -1.11% 4.28% 5.39% 9.79% 14.41% Benchmark -3.26% -1.43% 5.09% 5.95% 10.06% 14.57% Risk analysis (Calculation based on five-year period) Portfolio Benchmark Volatility 8.0% 7.9% Maximum drawdown -7.7% -5.8% Worst month -3.3% -3.3% Best month 6.1% 6.4% Asset allocation Comments Portfolio Benchmark The benchmark for the local equity component was changed on 1 November 2017 from the FTSE/JSE Shareholder Weighted Index to the FTSE/JSE Shareholder Weighted Capped Index. The asset management fees exclude performance fees where applicable, as well as investment-management fees recovered by the underlying investment managers within the portfolio Changes were made to the strategic asset allocations on 30 May 2014 and the benchmark returns were changed from 1 June Investment portfolio information Inception Date Investment Horizon Risk Profile April 1999 Long term Asset Management Fee New fee scale effective 1 October 2017 Investment manager allocation and returns Month Year Weighting Local equity managers BlueAlpha -4.97% 8.15% 5.0% Prudential -3.62% 11.93% 8.3% Foord -3.00% -7.78% 6.7% SIM Momentum -6.69% 8.53% 6.2% Momentum Alternative Inv. (private equity) 0.10% 1.72% 0.1% Momentum Alternative Inv. (private equity 2) -0.25% -3.20% 0.3% Momentum Alternative Inv. (private equity 3) -0.44% 4.92% 0.5% Fairtree -3.40% 6.92% 7.0% Truffle -3.67% 2.30% 7.1% OMIG -4.80% 4.48% 4.9% Perpetua -3.96% 3.99% 5.7% Local property managers Catalyst -5.32% -3.62% 5.7% Meago -6.01% -6.22% 3.7% Local bond managers Momentum Special Opportunities 0.79% 7.86% 1.4% Local cash managers Liquidity 0.3% ALUWANI 0.70% 9.26% 0.1% Taquanta 0.80% 9.17% 0.1% Local TAA managers Prescient 0.05% 4.67% 2.0% Global equity managers Momentum Global Investment Management 1.75% 10.40% 22.0% Global bond managers Amundi 0.51% -2.15% 4.0% Local absolute-return managers Momentum Moderate FoHF 0.22% 0.67% 4.2% Momentum Aggressive FoHF -0.61% -1.97% 4.1% Momentum Portable Alpha FoHF -3.92% 0.81% 0.4% Local inflation-linked bond manager ALUWANI 0.18% 4.14% 0.2% Total 100% Notes The first investment from FundsAtWork in this portfolio was 1 March The inception date of the Momentum Enhanced Factor 7 Portfolio, which is the underlying building block of the Momentum Accumulator Portfolio, is 1 July 2011 and portfolio and benchmark returns for the Momentum Enhanced Factor 7 Portfolio have been used since then. Portfolio and benchmark returns for Momentum High Equity Portfolio have been used from April 1999.

11 Momentum Enhanced Lifestage Portfolio Range Momentum Enhanced Lifestage Builder Portfolio May 2018 Investment strategy This investment portfolio is aimed at members of a retirement fund who are beginning to exit the accumulation phase of investing. These members would have a long-term investment horizon and should still have a significant allocation to growth asset classes. However, a small allocation to defensive asset classes is included in the portfolio. The portfolio is benchmarked against a 77.5% allocation to local equities and property as well as global equities. Although these asset classes are volatile, they provide returns above inflation over the long term. The portfolio incorporates all opportunities identified and performance fees may be paid within investment mandates, should they sufficiently enhance investment returns after fees. Investment portfolio mandate The long-term return objective of this portfolio is inflation plus 6% a year over sixyear rolling periods. All combinations of asset classes are considered and an optimum allocation is selected to achieve this objective with a high degree of certainty. Alternative asset-class opportunities are continually investigated. The risk of exposure to losses in the short term is continually managed by maximising diversification to predominantly active strategies within specialist investment mandates within each asset classes. This portfolio is managed in accordance with the investment limitations set out in Regulation 28 of the Pension Funds Act. Benchmark allocation Asset Class Local equities Local property Local bonds Local cash Local ILB Local commodities Global equities Global bonds Investment returns Allocation Benchmark 47.50% FTSE/JSE Shareholder Weighted Capped Index 10.00% FTSE/JSE SA Listed Property Index 5.00% JSE ASSA All Bond Index 5.00% Short-term Fixed Interest Composite Index 5.00% JSE ASSA Inflation-linked Government Bond Index 2.50% Short-term Fixed Interest Composite Index 20.00% MSCI All Countries World Index 5.00% Citigroup World Government Bond Index Month Months Year Five Since Inception Portfolio -1.93% -0.51% 4.69% 5.60% 9.39% 13.63% Benchmark -2.82% -0.89% 5.21% 6.13% 9.70% 13.61% Risk analysis (Calculation based on five-year period) Portfolio Benchmark Volatility 7.2% 7.1% Maximum drawdown -6.6% -5.3% Worst month -3.5% -2.9% Best month 5.7% 5.9% Asset allocation Comments Portfolio Benchmark The benchmark for the local equity component was changed on 1 November 2017 from the FTSE/JSE Shareholder Weighted Index to the FTSE/JSE Shareholder Weighted Capped Index. The asset management fees exclude performance fees where applicable, as well as investment-management fees recovered by the underlying investment managers within the portfolio. Changes were made to the strategic asset allocations on 30 May 2014 and the benchmark returns were changed from 1 June Investment portfolio information Inception Date Investment Horizon Risk Profile April 1999 Medium to long term Asset Management Fee New fee scale effective 1 October 2017 Investment manager allocation and returns Month Year Weighting Local equity managers BlueAlpha -4.97% 8.15% 4.1% Prudential -3.62% 11.93% 6.8% Foord -3.00% -7.78% 5.5% SIM Momentum -6.69% 8.53% 5.1% Momentum Alternative Inv. (private equity) 0.10% 1.72% 0.1% Momentum Alternative Inv. (private equity 2) -0.25% -3.20% 0.5% Momentum Alternative Inv. (private equity 3) -0.44% 4.92% 0.7% Fairtree -3.40% 6.92% 5.7% Truffle -3.67% 2.30% 5.8% OMIG -4.80% 4.48% 4.0% Perpetua -3.96% 3.99% 4.7% Local property managers Catalyst -5.32% -3.62% 5.0% Meago -6.01% -6.22% 3.3% Local bond managers Momentum Special Opportunities 0.79% 7.86% 1.3% Momentum Flexible Bond -0.68% 11.67% 0.1% Local cash managers ALUWANI 0.70% 9.26% 0.3% Taquanta 0.80% 9.17% 0.0% Global equity managers Momentum Global Investment Management 1.75% 10.40% 21.8% Global bond managers Amundi 0.51% -2.15% 3.9% Local absolute-return managers Momentum Moderate FoHF 0.22% 0.67% 3.6% Momentum Aggressive FoHF -0.61% -1.97% 3.5% Momentum Stable FoHF 0.37% 5.82% 2.4% Prescient -0.59% 6.25% 1.2% Absa -0.44% 9.36% 1.1% Prudential -2.95% 9.97% 1.0% Sentio -2.69% 5.58% 0.8% Tantalum -2.51% 5.24% 0.7% Local TAA manager Prescient 0.05% 4.67% 4.6% Local commodities managers Miton Optimal 1.38% 4.92% 2.2% Total 100% Notes The first investment from FundsAtWork in this portfolio was 1 March The inception date of the Momentum Enhanced Factor 6 Portfolio, which is the underlying building block of the Momentum Builder Portfolio, is 1 July 2011 and portfolio and benchmark returns for the Momentum Enhanced Factor 6 Portfolio have been used since then. Portfolio and benchmark returns for Momentum Balanced Portfolio have been used from April 1999.

12 Momentum Enhanced Lifestage Portfolio Range Momentum Enhanced Lifestage Consolidator Portfolio May 2018 Investment strategy This investment portfolio is aimed at members of a retirement fund who are in the consolidation phase of investing. These members would have a medium-to longterm investment horizon and should be invested in a balance of growth and defensive asset classes. This is achieved by the portfolio being benchmarked against a 62.5% benchmark allocation to local equities and property as well as global equities to achieve growth. The remaining 37.5% is benchmarked against investments that should preserve the purchasing power of the capital accumulated. The portfolio incorporates all opportunities identified and performance fees may be paid within investment mandates, should they sufficiently enhance investment returns after fees. Investment portfolio mandate The long-term return objective of this portfolio is inflation plus 5% a year over fiveyear rolling periods. All combinations of asset classes are considered and an optimum allocation is selected to achieve this objective with a high degree of certainty. Alternative asset-class opportunities are continually investigated. The risk of exposure to losses in the short term is continually managed by maximising diversification to predominantly active strategies within specialist investment mandates within each asset classes. This portfolio is managed in accordance with the investment limitations set out in Regulation 28 of the Pension Funds Act. Benchmark allocation Asset Class Local equities Local property Local bonds Local cash Local ILB Local commodities Global equities Global bonds Investment returns Allocation Benchmark 37.50% FTSE/JSE Shareholder Weighted Capped Index 10.00% FTSE/JSE SA Listed Property Index 12.50% JSE ASSA All Bond Index 7.50% Short-term Fixed Interest Composite Index 10.00% JSE ASSA Inflation-linked Government Bond Index 2.50% Short-term Fixed Interest Composite Index 15.00% MSCI All Countries World Index 5.00% Citigroup World Government Bond Index Month Months Year Five Since Inception Portfolio -1.74% 0.01% 4.91% 5.92% 8.64% 11.05% Benchmark -2.50% -0.51% 5.42% 6.19% 8.75% 11.42% Risk analysis (Calculation based on five-year period) Portfolio Benchmark Volatility 5.8% 5.8% Maximum drawdown -4.8% -3.4% Worst month -2.7% -2.5% Best month 4.8% 4.8% Asset allocation Comments Portfolio Benchmark The benchmark for the local equity component was changed on 1 November 2017 from the FTSE/JSE Shareholder Weighted Index to the FTSE/JSE Shareholder Weighted Capped Index. Changes were made to the strategic asset allocations on 30 May 2014 and the benchmark returns were changed from 1 June The first investment from FundsAtWork in this portfolio was 1 March The inception date of the Momentum Enhanced Factor 5 Portfolio, which is the underlying building block of the Momentum Consolidator Portfolio, is 1 July 2011 and portfolio and benchmark returns for the Momentum Enhanced Factor 5 Portfolio have been used since then. Portfolio and benchmark returns for Momentum Moderate Lifestage Portfolio have been used from June Investment portfolio information Inception Date Investment Horizon Risk Profile June 2010 Medium term Asset Management Fee New fee scale effective 1 October 2017 Investment manager allocation and returns Month Year Weighting Local equity managers BlueAlpha -4.97% 8.15% 2.8% Prudential -3.62% 11.93% 4.7% Foord -3.00% -7.78% 3.8% SIM Momentum -6.69% 8.53% 3.5% Momentum Alternative Inv. (private equity 2) -0.25% -3.20% 0.3% Momentum Alternative Inv. (private equity 3) -0.44% 4.92% 0.5% Fairtree -3.40% 6.92% 4.0% Truffle -3.67% 2.30% 4.0% OMIG -4.80% 4.48% 2.8% Perpetua -3.96% 3.99% 3.2% Local property managers Catalyst -5.32% -3.62% 5.8% Meago -6.01% -6.22% 3.7% Local bond managers Futuregrowth -1.38% 13.12% 1.3% ALUWANI 0.18% 4.14% 2.6% Momentum Special Opportunities 0.79% 7.86% 1.3% Momentum Flexible Bond -0.68% 11.67% 0.7% Local cash managers Liquidity 0.2% ALUWANI 0.70% 9.26% 1.1% Taquanta 0.80% 9.17% 1.0% Local TAA managers Prescient 0.05% 4.67% 4.4% Global equity managers Momentum Global Investment Management 1.75% 10.40% 16.8% Global bond managers Amundi 0.51% -2.15% 4.3% Local absolute-return managers Momentum Moderate FoHF 0.22% 0.67% 3.3% Momentum Aggressive FoHF -0.61% -1.97% 2.6% Momentum Stable FoHF 0.37% 5.82% 2.9% Prescient -0.59% 6.25% 4.0% Absa -0.44% 9.36% 3.8% Prudential -2.95% 9.97% 3.4% Sentio -2.69% 5.58% 2.6% Tantalum -2.51% 5.24% 2.5% Local commodities managers Miton Optimal 1.38% 4.92% 2.1% Total 100% Notes The asset management fees exclude performance fees where applicable, as well as investment-management fees recovered by the underlying investment managers within the portfolio.

13 Momentum Enhanced Lifestage Portfolio Range Momentum Enhanced Lifestage Defender Portfolio May 2018 Investment strategy This investment portfolio is aimed at members of a retirement fund who are close to retirement. These members would have a short- to medium-term investment horizon and should be invested in predominantly defensive asset classes. This is achieved by having a 67.5% benchmark allocation to investments that should preserve the purchasing power of the capital accumulated. The portfolio incorporates all opportunities identified and performance fees may be paid within investment mandates, should they sufficiently enhance investment returns after fees. Investment portfolio mandate The long-term return objective of this portfolio is inflation plus 3% a year over three-year rolling periods. All combinations of asset classes are considered and an optimum allocation is selected to achieve this objective with a high degree of certainty. Alternative asset-class opportunities are continually investigated. The risk of exposure to losses in the short term is continually managed by maximising diversification to predominantly active strategies within specialist investment mandates within each asset classes. This portfolio is managed in accordance with the investment limitations set out in Regulation 28 of the Pension Funds Act. Benchmark allocation Asset Class Local equities Local property Local bonds Local cash Local ILB Local commodities Global equities Global bonds Investment returns Allocation Benchmark 20.00% FTSE/JSE Shareholder Weighted Capped Index 7.50% FTSE/JSE SA Listed Property Index 12.50% JSE ASSA All Bond Index 27.50% Short-term Fixed Interest Composite Index 15.00% JSE ASSA Inflation-linked Government Bond Index 7.50% Short-term Fixed Interest Composite Index 5.00% MSCI All Countries World Index 5.00% Citigroup World Government Bond Index Month Months Year Five Since Inception Portfolio -1.00% 0.94% 5.40% 5.98% 7.38% 10.68% Benchmark -1.45% 0.40% 5.70% 6.28% 7.73% 9.87% Risk analysis (Calculation based on five-year period) Portfolio Benchmark Volatility 3.9% 3.7% Maximum drawdown -3.1% -1.7% Worst month -3.1% -1.6% Best month 3.1% 2.8% Asset allocation Comments Portfolio Benchmark The benchmark for the local equity component was changed on 1 November 2017 from the FTSE/JSE Shareholder Weighted Index to the FTSE/JSE Shareholder Weighted Capped Index. Changes were made to the strategic asset allocations on 30 May 2014 and the benchmark returns were changed from 1 June The first investment from FundsAtWork in this portfolio was 1 March The inception date of the Momentum Enhanced Factor 3 Portfolio, which is the underlying building block of the Momentum Defender Portfolio, is 1 July 2011 and portfolio and benchmark returns for the Momentum Enhanced Factor 3 Portfolio have been used since then. Portfolio and benchmark returns for Momentum Absolute Strategies Portfolio have been used from January Investment portfolio information Inception Date Investment Horizon Risk Profile January 2004 Short term Asset Management Fee New fee scale effective 1 October 2017 Investment manager allocation and returns Month Year Weighting Local equity managers BlueAlpha -4.97% 8.15% 0.9% Prudential -3.62% 11.93% 1.4% Foord -3.00% -7.78% 1.2% SIM Momentum -6.69% 8.53% 1.1% Fairtree -3.40% 6.92% 1.2% Truffle -3.67% 2.30% 1.2% OMIG -4.80% 4.48% 0.9% Perpetua -3.96% 3.99% 1.0% Momentum Alternative Inv. (private equity 2) -0.25% -3.20% 0.3% Momentum Alternative Inv. (private equity 3) -0.44% 4.92% 0.5% Local property managers Catalyst -5.32% -3.62% 3.9% Meago -6.01% -6.22% 2.5% Local bond managers Momentum Asset Management 0.40% 9.48% 1.6% Momentum Special Opportunities 0.79% 7.86% 1.4% Local cash managers Liquidity 0.1% ALUWANI 0.70% 9.26% 1.7% Taquanta 0.80% 9.17% 1.6% Atlantic 0.79% 8.25% 1.9% Prescient SRI 0.69% 8.88% 2.9% Local TAA managers Prescient 0.05% 4.67% 4.6% Global equity managers Momentum Global Investment Management 1.75% 10.40% 6.1% Global bond managers Amundi 0.51% -2.15% 4.2% Local absolute-return managers Momentum Moderate FoHF 0.22% 0.67% 4.5% Momentum Stable FoHF 0.37% 5.82% 4.7% Prescient -0.59% 6.25% 8.6% Absa -0.44% 9.36% 8.2% Prudential -2.95% 9.97% 7.4% Sentio -2.69% 5.58% 5.6% Tantalum -2.51% 5.24% 5.4% Local inflation-linked bond manager ALUWANI 0.18% 4.14% 6.1% Local commodities managers Miton Optimal 1.38% 4.92% 7.2% Total 100% Notes The asset management fees exclude performance fees where applicable, as well as investment-management fees recovered by the underlying investment managers within the portfolio

14 Disclaimer: Momentum Outcome-based Solutions (Pty) Ltd, registration number 2004/023064/07, is an authorised financial services provider in terms of Section 8 of the Financial Advisory and Intermediary Services Act, 37 of 2002 (FAIS Act), as amended, FSP licence number This information is not advice as defined and contemplated in the FAIS Act. The company is also registered as an administrator in terms of Section 13B of the Pension Funds Act, registration number 24/401. Momentum Outcome-based Solutions (Pty) Ltd is a division of MMI Group Limited, which is an authorised financial services and credit provider. Given that past returns may not be indicative of future returns and the value of investments will fluctuate over time, independent professional advice should always be sought before making an investment decision. MMI Group Limited s responsibility in connection with the information in this document is limited to its assumed liability in terms of the retirement fund policy. Published promotional material, the application form, its appendices and any other administration forms containing details of the portfolio(s) and underlying investments should all be read in conjunction with the policy as they form part of the policy contract between MMI Group Limited and the retirement fund. Full terms and conditions on the portfolio are set out in the MMI Group Limited policy. Transactions such as investments in, disinvestment from, switching from and the provision of policy benefits and payment of consideration are subject to the terms and conditions of the policy and in the event of any conflict between the terms and conditions of this document and the policy, the terms and conditions of the policy will prevail. The asset allocation of the portfolio is managed in accordance with the investment limitations set out in Regulation 28 of the Pension Funds Act, 24 of 1956, as amended, and the limits of the type of investments in which the portfolio may be invested may be amended from time to time. The policy fee includes investment-management fees earned by investment managers appointed by Momentum Outcome-based Solutions (Pty) Ltd to manage the investments in respect of the portfolio. The retirement fund agrees Momentum Outcome-based Solutions (Pty) Ltd and the investment managers are paid out of the policy fee. However, in certain instances (such as the private equity, commodity and fund-of-hedge-fund components), a portfolio may include underlying Investments where fees are deducted from the investment return and not paid out of the policy fee. The policy fee excludes a performance-based fee, except where the retirement fund has specifically agreed that a performance-based fee be included in the policy fee. Such a performance-based fee will be paid by Momentum Outcome-based Solutions (Pty) Ltd on behalf of MMI Group Limited, in its sole discretion, to the underlying investment managers or to Momentum Outcome-based Solutions (Pty) Ltd itself if agreed to by the retirement fund. Momentum Outcome-based Solutions (Pty) Ltd will disclose the performance-based fee paid as well as the basis of its calculation to the retirement fund on request. The information reproduced in this document has been compiled by or arrived at by Momentum Outcome-based Solutions (Pty) Ltd from sources believed to be reliable. Although reasonable steps have been taken to ensure the validity and accuracy of the information in this document, Momentum Outcome-based Solutions (Pty) Ltd does not accept any responsibility for any claim, damages, loss or expense, howsoever arising, out of or in connection with the information in this document, whether by a client, investor or intermediary. The information and any view or opinion contained in this report is proprietary to Momentum Outcome-based Solutions (Pty) Ltd and is protected by copyright under the Berne Convention. In terms of the Copyright Act, 98 of 1978, as amended, this report or any part thereof may not be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without prior permission in writing from Momentum Outcome-based Solutions (Pty) Ltd. The illegal and unlawful or attempted illegal and unlawful copying or use of this information or views may result in criminal or civil legal liability. FTSE/JSE disclaimer: Momentum Outcome-based Solutions registration number 2004/023064/ West Avenue Centurion 0157 PO Box 7400 Centurion 0046 Telephone +27 (12) Facsimile +27 (12) us@momentum.co.za investments