Momentum Passive Lifestage Portfolio Range

Transcription

1 Momentum Passive Lifestage Portfolio Range 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 10 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. Investment portfolio allocation Portfolio Momentum Passive Accumulator Momentum Passive Builder Momentum Passive Consolidator Momentum Passive Defender Building block CPI + 6% CPI + 5% CPI + 4% CPI + 3% to retirement More than seven years to retirement Five to seven years to retirement Three to five years to retirement Less than three years to retirement

2 Momentum Passive Accumulator Portfolio (CPI+6%) 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 a 75% allocation to local as well as global equities. Although these asset classes are volatile, they provide returns above inflation over the long term. The long-term return objective of this portfolio is inflation plus 6% a year over six-year rolling periods. Different combinations of asset classes are considered and an optimum Local equities ` % Local inflation-linked bonds 7.50% classification: Citigroup World classification description administration forms containing details of the portfolio(s) and underlying 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 in, disinvestment from, switching from and the provision of amended, and the limits of the type of 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 in respect of the portfolio. The retirement fund agrees that Momentum Outcome-based Solutions (Pty) Ltd Momentum Passive Accumulator Portfolio

3 Momentum Passive Builder Portfolio (CPI+5%) 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 medium- to long-term investment horizon and should still have a significant allocation to growth asset classes. However, a small allocation to defensive assets is now included in the portfolio. The portfolio is benchmarked against a 67.5% allocation to local as well as global equities. Although these asset classes are volatile, they provide returns above inflation over the long term. The long-term return objective of this portfolio is inflation plus 5% a year over five-year rolling periods. Different combinations of asset classes are considered and an optimum Local equities 47.50% 10.00% Local ILB 10.00% 7.50% classification: Citigroup World classification description administration forms containing details of the portfolio(s) and underlying 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 in, disinvestment from, switching from and the provision of amended, and the limits of the type of 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 in respect of the portfolio. The retirement fund agrees that Momentum Outcome-based Solutions (Pty) Ltd Momentum Passive Builder Portfolio

4 Momentum Passive Consolidator Portfolio (CPI+4%) 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-term investment horizon and should be invested in a balance of growth and defensive asset classes. This balance is achieved by having a 52.5% benchmark allocation to local as well as global equities to achieve growth. The remaining 47.5% is allocated to that should preserve the purchasing power of the capital accumulated. The long-term return objective of this portfolio is inflation plus 4% a year over four-year rolling periods. All combinations of asset classes are considered and an optimum Local equities 37.50% 17.50% Local ILB % 1 classification: Citigroup World classification description administration forms containing details of the portfolio(s) and underlying 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 in, disinvestment from, switching from and the provision of amended, and the limits of the type of 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 in respect of the portfolio. The retirement fund agrees that Momentum Outcome-based Solutions (Pty) Ltd Momentum Passive Consolidator Portfolio

5 Momentum Passive Defender Portfolio (CPI+3%) This investment portfolio is aimed at members of a retirement fund who are close to retirement. These members would have a short-term investment horizon and should be invested in predominantly defensive asset classes. This is achieved by having a 75% benchmark allocation to that should preserve the purchasing power of the capital accumulated. 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 Local equities Local ILB 30.00% classification: Citigroup World classification description administration forms containing details of the portfolio(s) and underlying 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 in, disinvestment from, switching from and the provision of amended, and the limits of the type of 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 in respect of the portfolio. The retirement fund agrees that Momentum Outcome-based Solutions (Pty) Ltd Momentum Passive Defender Portfolio

6 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. Momentum Outcome-based Solutions (Pty) Ltd is also registered as an administrator in terms of Section 13B of the Pension Funds Act, registration number 24/401. Given that past returns may not be indicative of future returns and the value of 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 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 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 in which the portfolio may be invested may be amended from time to time. The policy fee includes investmentmanagement fees earned by investment managers appointed by Momentum Outcome-based Solutions (Pty) Ltd to manage the 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 The company is an authorised financial services provider registration number 2004/023064/ West Avenue Centurion 0157 PO Box 7400 Centurion 0046 Telephone +27 (0) or +27 (12) Facsimile +27 (0) or +27 (12) MOBS. us@momentum.co.za