FundsAtWork Umbrella Pension and Provident Funds (Namibia) Portfolio Range investment report

Transcription

1 FundsAtWork Umbrella Pension and Provident Funds (Namibia) Range investment report march 2013 FundsAtWork

2 Namibia Accumulator This portfolio is focused on maximising long-term capital growth of the assets and aimed at members with a term to retirement longer than 20 years. allocation Asset Class Allocation Local equities 75.00% Composite benchmark (see manager allocations) Local bonds 25.00% Composite benchmark (see manager allocations) Date April 2011 Long term s 1.14% 1.49% 17.68% 15.35% 1.50% 1.81% 21.22% 16.65% Volatility 5.0% 6.7% Maximum drawdown -1.8% -2.4% Information ratio -1.4 Worst month -1.8% -2.4% Best month 3.2% 4.1% Weighting Equity building block Momentum Asset Management Namibia Core 1.45% 18.70% 75.5% Equity 65% FTSE/JSE All-Share Index (Capped) and 35% 1.93% 23.76% Simonis Storm Securities Capped Namibia All Share Inde 0.20% 14.62% 24.5% 65% BEASSA All Index and 35% Irwin The Exchange Association of South African All Index has been used as a proxy for the Irwin, as the IJG Group decided not to publish the returns for this index for this month. The IJG Group is in the process of developing a new bond, which should be available from 1 November The actual returns for August, September and October for this new index will then replace the proxy returns.

3 Namibia Builder This portfolio's objective is to achieve long-term capital growth. The portfolio is aimed at members who require the potential for long-term capital growth with more emphasis on capital preservation. The portfolio will have a lower volatility than the Accumulator and is aimed at members who have a term to retirement of between 10 and 20 years. allocation Asset Class Local equities Local bonds Local cash Global equities Global bonds Allocation 45.00% Composite benchmark (see manager allocations) 23.00% Composite benchmark (see manager allocations) 21.25% Composite benchmark (see manager allocations) 7.50% MSCI All Countries World Index 3.75% Citigroup World Government Index s 1.47% 2.73% 15.73% 13.79% 1.36% 2.70% 17.74% 14.23% Volatility 3.2% 4.0% Maximum drawdown -0.5% -1.0% Information ratio -1.7 Worst month -0.5% -1.0% Best month 2.3% 2.5% Date April 2011 Medium to long term Weighting Managed building block Momentum Asset Management Namibia Managed 1.83% 17.19% 76.8% Fund Composite benchmark return 1.71% 20.24% 0.20% 14.62% 14.8% 65% BEASSA All Index and 35% Irwin Cash building block Momentum Asset Management Namibia Cash 0.47% 5.77% 8.4% Irwin Jacobs Green Namibia Money Market Index 0.45% 5.63% The benchmark for the equity building block is 38% ALSI, 6.5% ALBI, 5% SteFI, 3.5% IJG Namibia Government Index, 10% IJG Namibia Money Market Index, 22% SSS Namibia ALSI, 10% MSCI All Countries and 5% Citi WGBI.

4 Namibia Consolidator This portfolio is aimed at members who require capital growth with a significant focus on capital preservation and return stability. The emphasis at this stage is not to expose investors to unnecessary risk, and any unsystematic risk will be diversified away through the optimal asset allocation selected for this portfolio. A balanced approach between capital growth and capital preservation is adopted with a focus on downside risk management and return stability. The portfolio is aimed at investors with a term to retirement of between five and 10 years. allocation Asset Class Local equities Local bonds Local cash Global equities Global bonds Allocation 36.00% Composite benchmark (see manager allocations) 31.00% Composite benchmark (see manager allocations) 24.00% Composite benchmark (see manager allocations) 6.00% MSCI All Countries World Index 3.00% Citigroup World Government Index s 1.23% 2.44% 14.89% 13.20% 1.14% 2.39% 16.33% 13.49% Volatility 2.7% 3.4% Maximum drawdown -0.4% -0.7% Information ratio -1.5 Worst month -0.4% -0.7% Best month 2.4% 2.5% Date April 2011 Short to medium term Weighting Managed building block Momentum Asset Management Namibia Managed 1.83% 17.19% 61.7% Fund Composite benchmark return 1.71% 20.24% 0.20% 14.62% 24.9% 65% BEASSA All Index and 35% Irwin Cash building block Momentum Asset Management Namibia Cash 0.47% 5.77% 13.5% Irwin Jacobs Green Namibia Money Market Index 0.45% 5.63% The benchmark for the equity building block is 38% ALSI, 6.5% ALBI, 5% SteFI, 3.5% IJG Namibia Government Index, 10% IJG Namibia Money Market Index, 22% SSS Namibia ALSI, 10% MSCI All Countries and 5% Citi WGBI.

5 Namibia Defender This portfolio is aimed at investors who require inflation protection of the capital asset and capital preservation. As the member is near the retirement, there is a shift to capital protection and increasing income needs. It is therefore appropriate to move to an income portfolio which provides inflation protection and low volatility. The portfolio is aimed at a more risk averse investor with a term to retirement of less than five years. allocation Asset Class Allocation Local bonds 66.70% Composite benchmark (see manager allocations) Local cash 33.30% Irwin Jacobs Green Namibia Money Market Index Date May 2011 Short term s 0.28% 1.22% 11.66% 10.20% 0.29% 1.10% 10.93% 10.29% Volatility 2.8% 2.9% Maximum drawdown 0.0% -0.2% Information ratio 2.7 Worst month 0.0% -0.2% Best month 2.5% 2.5% Weighting 0.20% 14.62% 68.1% 65% BEASSA All Index and 35% Irwin Cash building block Momentum Asset Management Namibia Cash 0.47% 5.77% 31.9% Irwin Jacobs Green Namibia Money Market Index 0.45% 5.63% The Exchange Association of South African All Index has been used as a proxy for the Irwin, as the IJG Group decided not to publish the returns for this index for this month. The IJG Group is in the process of developing a new bond, which should be available from 1 November The actual returns for August, September and October for this new index will then replace the proxy returns.

6 Disclaimer: Momentum Manager of Managers Proprietary Limited, 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 Manager of Managers Proprietary Limited 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 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 Manager of Managers Proprietary Limited to manage the investments in respect of the portfolio. The retirement fund agrees Momentum Manager of Managers Proprietary Limited 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 Manager of Managers Proprietary Limited on behalf of MMI Group Limited, in its sole discretion, to the underlying investment managers or to Momentum Manager of Managers Proprietary Limited itself if agreed to by the retirement fund. Momentum Manager of Managers Proprietary Limited 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 Manager of Managers Proprietary Limited 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 Manager of Managers Proprietary Limited 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 Manager of Managers Proprietary Limited 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 Manager of Managers Proprietary Limited. 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 Manager of Managers Proprietary Limited 2nd floor 6 Merchant Place Cnr of Fredman Drive and Gwen Lane Sandton PO Box 330 Gallo Manor 2052 Telephone +27 (0) Facsimile +27(0) MoM. us@momentum.co.za of managers Momentum Manager of Managers Proprietary Limited, registration number 2004/023064/07, VAT number , is an authorised financial services provider, 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. investments