Monthly Feedback 31 March 2016 Ampersand Asset Management CIS Minimum Disclosure Documents (MDDs) Ampersand Momentum CPI Plus 2 Fund of Funds Ampersand Momentum CPI Plus 4 Fund of Funds Ampersand Momentum CPI Plus 6 Fund of Funds Ampersand Momentum Equity Fund Ampersand Momentum Flexible Property Income Fund AA
Ampersand Momentum CPI Plus 2 Fund of Funds Momentum Collective Investment Scheme (CIS) portfolio Class A Minimum Disclosure Document (MDD) as at 31 March 2016 Assets managed by: Ampersand Asset Management Portfolio Objective The portfolio aims to generate positive returns over the short term while beating inflation by two percent over a three-year rolling period. The portfolio will be managed to achieve stable growth and will comply with the Prudential Investment Guidelines at all times. Investable Universe of Portfolio In order to achieve this objective, the assets normally included in the portfolio will consist of assets in liquid form and participatory interests of portfolios of collective investment schemes or other similar schemes in equity, bond, money or property markets, registered in South Africa, or portfolios of collective investment schemes or other similar schemes operated in territories with a regulatory environment which is to the satisfaction of the manager and trustee of a sufficient standard to provide investor protection at least equivalent to that in South Africa. The portfolio may invest in multi-asset class portfolios and is not limited to certain asset classes. The manager will be permitted to invest on behalf of the portfolio in offshore investments as permitted by legislation. The portfolio will aim to achieve a minimum of 20% and a maximum of 30% in equity exposure. Portfolio Performance Annualised returns (%) Portfolio information Portfolio inception 12 May 2008 Portfolio size R 1.45 billion Launch date 12 May 2008 Launch price 100.00 (cpu) Latest price (31/03/2016) 157.68 (cpu) Benchmark ASISA sector Regulation 28 compliant Codes JSE ISIN CPI + 2% (after fees) SA - Multi Asset - Low Equity Yes VPCFC ZAE000118964 Minimum investment Lump sum R 10,000 Monthly R 1,000 Portfolio managers Tom Barlow, BCom (Economics), CFA Portfolio charges Initial management fee Initial advisory fee Annual management fee Annual advisory fee 0% - 3.42% (incl. VAT) 0.798% p.a. (incl. VAT) 0% - 1.14% (incl. VAT) Cost ratios Total Expense Ratio (TER): 0.84% (incl. VAT) Transaction Costs (TC): Total Investment Charges (TER+TC): 0.84% (incl. VAT) Please see Disclosures section for further information on cost ratios Income distribution (cpu) Yearly returns (%) Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15 Mar 16 Fund 11.91 7.96 10.70 15.74 8.55 11.44 7.20 BM 7.81 5.74 8.10 7.96 8.03 5.99 9.22 Dividend Interest Total Dec'14 0.447 0.957 1.404 Jun'15 0.451 0.871 1.322 Nov'15 0.469 1.077 1.552 Dec'15 0.000 0.000 0.000 Apr'15 - Mar'16 0.920 1.949 2.874 Distribution takes place Semi-annually : June, December This table provides the individual 1 year returns, for both fund and benchmark that underlie the longer term annualised return periods provided in the bar chart above. Cumulative returns over 3 years (%) Momentum collective investments Ampersand Momentum CPI Plus 2 Fund of Funds (Class A) MDD as at March 2016 Published: 05 May 2016 Page 2 of 16
Risk/reward profile and 3 year statistics Standard deviation 1) 4.34 Sharpe ratio 2) 0.68 Largest negative monthly return -3.34 Number of positive months 28 / 36 1) Standard deviation measures the volatility of fund returns Specific risks The fund is permitted to invest in foreign securities which, within portfolios, may have additional material risks, depending on the specific risks affecting that country, such as: 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. Investors are reminded that an investment in a currency other than their own may expose them to a foreign exchange risk. 2) Sharpe ratio fund return minus cash return (STeFI composite), divided by the Standard deviation (of fund returns) Holdings Asset allocation (look through) Portfolio holdings (%) VPFP International Cautious IC A 25.43 Saffron MET Inflation Linked Bond B 18.70 Ampersand Momentum Equity B 16.99 Ampersand Momentum Flex Property Inc 16.31 Saffron MET Opportunity Income C1 10.58 Element Specialist lncome C 3.90 Coronation Strategic Income 2.92 Saffron African Yield Opportunity B 2.74 Saffron MET Top 20 B 0.89 Saffron MET Inflation Linked Bond ABIL RF 0.47 Saffron MET Opportunity Income ABIL RF A 0.21 Local Cash/Money Market 0.85 Monthly Comment Last year s volatile global equity market has continued into the first quarter of this year. The MSCI AC World Index gained 0.08% while global bonds lost -4.74% in rand terms. The rand strengthened and managed to end the month on much firmer ground, at R14.65/US$. The US Federal Open Market Committee ( FOMC ) left its target range for the federal funds rate unchanged. The FOMC noted that the US economy was expanding at a moderate pace. Recent economic developments outside of the US have prompted the Federal Reserve to take a more cautious approach to raising interest rates in 2016. The unemployment rate increased to 5.0% from a previous 4.9%. Consumer inflation remained contained, easing to 1.0%. In South Africa, inflation accelerated and came in at a much higher than expected 7.0% y/y, after surging to 6.2% in January from 5.2% in December. The upward pressure came from higher food prices and higher transport costs. The South African Reserve Bank ( SARB ) lowered its inflation forecasts marginally, now expecting inflation to average 6.60% in 2016 from 6.80% previously. The SARB Monetary Policy Committee raised interest rates by 25 basis points after hiking rates by 50 basis points in January. The SARB currently expects the economy to grow by a modest 0.8% in 2016. The deterioration of growth coupled with an increasing interest rate environment suggests that the economy is potentially heading for stagflation. The JSE All Share Index ended the month up 6.44% led mostly by a strong recovery in Financials (11.51%). Resources and Industrials also produced positive returns ending the month up 5.08% and 7.84% respectively. SA Listed Property and bonds gained 9.48% and 2.63% respectively. We remain cautiously optimistic about the portfolios. Markets remain uncertain but our philosophy and investment approach has proven to be robust and effective in these challenging times. We urge investors to remain patient and committed to their chosen investment strategy. Momentum collective investments Ampersand Momentum CPI Plus 2 Fund of Funds (Class A) MDD as at March 2016 Published: 05 May 2016 Page 3 of 16
Disclosures Momentum Collective Investments (RF) (Pty) Ltd (the Manager ), registration number 1987/004287/07, is authorised in terms of the Collective Investment Schemes Control Act (CISCA) to administer Collective Investment Schemes (CIS) in Securities. The Manager is the manager of the Momentum Collective Investments Scheme, and MMI Holdings Ltd is a full member of the Association for Savings and Investment SA. Standard Bank of South Africa Limited (+27 (0)21 441 4100 PO Box 54, Cape Town, 8000) is the trustee of the scheme. Ampersand Momentum CPI Plus 2 Fund of Funds is a portfolio of the Momentum Collective Investments Scheme and Ampersand Asset Management (Pty) Ltd, registration number: 2007/006571/07, an approved financial services provider (FSP) under the Financial Advisory and Intermediary Services Act (No. 37 of 2002), FSP number: 33676, is responsible for managing the assets of this portfolio. CIS are generally medium to long-term investments. The value of participatory interests may go down as well as up and past performance is not necessarily a guide to the future. CIS are traded at ruling prices and can engage in borrowing and scrip lending. The CIS may borrow up to 10% of the market value of the portfolio to bridge insufficient liquidity. Different classes of units apply to portfolios, which are subject to different fees and charges. A schedule of fees and charges and maximum commissions is available on request from the Manager. The Manager reserves the right to close and reopen certain portfolios from time to time in order to manage them more efficiently in accordance with their mandate. Portfolios are valued daily at approx. 15h00, latest prices can be viewed at www.momentuminv.co.za. Forward pricing is used. Instructions must reach the Manager before 14h00 to ensure same-day value. The Manager does not provide any guarantee, either with respect to the capital or the return of this portfolio. Additional information on the proposed investment can be obtained, free of charge, at www.momentuminv.co.za or may be requested from the Manager. Ampersand Momentum CPI Plus 2 Fund of Funds is a Fund of Funds CIS portfolio. A Fund of Funds, apart from assets in liquid form, consists solely of participatory interests in portfolios of CIS, which may levy their own charges, which could result in a higher fee structure for Fund of Funds than some other forms of CIS portfolios. Ampersand Momentum CPI Plus 2 Fund of Funds is a third party named CIS portfolio, the assets of which are administered by Ampersand Asset Management (Pty) Ltd, registration number: 2007/006571/07, a registered financial services provider, FSP number: 33676. The Manager retains full legal responsibility for all third party named CIS portfolios under the Momentum Collective Investments Scheme. Contact and other information Scheme Momentum Collective Investments Scheme Custodian/Trustee Standard Bank of South Africa Limited Telephone: +27 (0)21 441 4100 Management company Momentum Collective Investments (RF) (Pty) Ltd 13th Floor Tower 2, 102 Rivonia Road, Sandton, 2196 Private Bag 9959, Sandton, 2146 Facsimile: +27 (0)12 675 3889 Call centre: 0860 111 899 ci.clientservice@momentum.co.za www.momentuminv.co.za Registration no.: 1987/004287/07 Third party manager Ampersand Asset Management (Pty) Ltd An authorised financial services provider, FSP No: 33676 1 Tuscany Office Park, 6 Coombe Place, Rivonia, 2191, Sandton, South Africa P.O. Box 926, Rivonia, 2128 Telephone: +27 (0)11 803 6597 Facsimile: +27 (0)11 803 6106 queries@ampersandam.co.za www.ampersandam.co.za Registration no.: 2007/006571/07 The Total Expense Ratio (TER) is the percentage of the net asset value of the class of the Financial Product incurred as expenses relating to the administration of the Financial Product. A higher TER does not necessarily imply a poor return, nor does a low TER imply a good return. A current TER may not necessarily be an accurate indication of future TER s. The disclosed TER is shown as an annual percentage based on data for the period from 01 January 2013 to 31 December 2015. The Transaction Costs (TC) is the percentage of the net asset value of the Financial Product incurred as costs relating to the buying and selling of the assets underlying the Financial Product. TC are a necessary cost in administering the Financial Product and impacts Financial Product returns. It should not be considered in isolation as returns may be impacted by many other factors over time including market returns, the type of Financial Product, the investment decisions of the investment manager and the TER. The disclosed TC is shown as an annual percentage based on data for the period from 01 January 2013 to 31 December 2015. The Total Investment Charges (TIC), the TER + the TC, is the percentage of the net asset value of the class of the Financial Product incurred as costs relating to the investment of the Financial Product. It should be noted that a TIC is the sum of two calculated ratios (TER+TC). The TER and TC have been calculated using historical actual and/or estimated data and are provided solely as an indication/guide as to the annual expenses/costs that could be incurred. These ratios do not represent any current/actual charges or fees. Performance is calculated for a portfolio/portfolio class. Individual investor returns may differ as a result of fees, actual date(s) of investment, date(s) of reinvestment of income and withholding tax. Annualised returns, also known as Compound Annualised Growth Rates (CAGR), are calculated from cumulative returns; they provide an indication of the average annual return achieved from an investment that was held for the stated time period. Actual annual figures are available from the Manager on request. Performance figures quoted are from Morningstar, as at 31/03/2016, for a lump sum investment, using NAV-NAV prices with income distributions reinvested on the ex-dividend date. CPI/Inflation figures, where present, are lagged by one month. This document should not be seen as an offer to purchase any specific product and is not to be construed as advice. Investors are encouraged to obtain independent professional investment and taxation advice before investing with or in any of the Manager s products. Momentum collective investments Ampersand Momentum CPI Plus 2 Fund of Funds (Class A) MDD as at March 2016 Published: 05 May 2016 Page 4 of 16
Ampersand Momentum CPI Plus 4 Fund of Funds Momentum Collective Investment Scheme (CIS) portfolio Class A Minimum Disclosure Document (MDD) as at 31 March 2016 Assets managed by: Ampersand Asset Management Portfolio Objective The portfolio aims to beat inflation by four percent over a three-year rolling period. The portfolio will be managed to achieve relatively stable growth and will comply with the Prudential Investment Guidelines at all times. Investable Universe of Portfolio In order to achieve this objective, the assets normally included in the portfolio will consist of assets in liquid form and participatory interests of portfolios of collective investment schemes or other similar schemes in equity, bond, money or property markets, registered in South Africa, or portfolios of collective investment schemes or other similar schemes operated in territories with a regulatory environment which is to the satisfaction of the manager and trustee of a sufficient standard to provide investor protection at least equivalent to that in South Africa. The portfolio may invest in multi-asset class portfolios and is not limited to certain asset classes. The manager will be permitted to invest on behalf of the portfolio in offshore investments as permitted by legislation. The portfolio will aim to achieve a minimum of 40% and a maximum of 50% in equity exposure. Portfolio Performance Annualised returns (%) Portfolio information Portfolio inception 12 May 2008 Portfolio size R 1.56 billion Launch date 12 May 2008 Launch price 100.00 (cpu) Latest price (31/03/2016) 161.36 (cpu) Benchmark ASISA sector Regulation 28 compliant Codes JSE ISIN CPI + 4% (after fees) SA - Multi Asset - Medium Equity Yes VPCFF ZAE000118956 Minimum investment Lump sum R 10,000 Monthly R 1,000 Portfolio managers Tom Barlow, BCom (Economics), CFA Portfolio charges Initial management fee Initial advisory fee Annual management fee Annual advisory fee 0% - 3.42% (incl. VAT) 0.798% p.a. (incl. VAT) 0% - 1.14% (incl. VAT) Cost ratios Total Expense Ratio (TER): 1.76% (incl. VAT) Transaction Costs (TC): Total Investment Charges (TER+TC): 1.76% (incl. VAT) Please see Disclosures section for further information on cost ratios Income distribution (cpu) Yearly returns (%) Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15 Mar 16 Fund 16.70 8.76 8.79 16.94 12.13 10.81 5.86 BM 9.92 7.81 10.22 10.08 10.15 8.06 11.37 Dividend Interest Total Dec'14 0.429 0.687 1.117 Jun'15 0.472 0.622 1.095 Nov'15 0.527 0.654 1.187 Dec'15 0.000 0.000 0.000 Apr'15 - Mar'16 0.999 1.276 2.281 Distribution takes place Semi-annually : June, December This table provides the individual 1 year returns, for both fund and benchmark that underlie the longer term annualised return periods provided in the bar chart above. Cumulative returns over 3 years (%) Momentum collective investments Ampersand Momentum CPI Plus 4 Fund of Funds (Class A) MDD as at March 2016 Published: 05 May 2016 Page 5 of 16
Risk/reward profile and 3 year statistics Standard deviation 1) 6.05 Sharpe ratio 2) 0.58 Largest negative monthly return -4.33 Number of positive months 27 / 36 1) Standard deviation measures the volatility of fund returns Specific risks The fund is permitted to invest in foreign securities which, within portfolios, may have additional material risks, depending on the specific risks affecting that country, such as: 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. Investors are reminded that an investment in a currency other than their own may expose them to a foreign exchange risk. 2) Sharpe ratio fund return minus cash return (STeFI composite), divided by the Standard deviation (of fund returns) Holdings Asset allocation (look through) Portfolio holdings (%) Ampersand Momentum Equity B 28.09 VPFP International Growth IC A 25.64 Saffron MET Inflation Linked Bond B 16.77 Ampersand Momentum Flex Property Inc 16.16 Saffron MET Top 20 B 3.60 Saffron African Yield Opportunity B 3.00 Saffron MET Opportunity Income C1 1.94 Saffron MET Inflation Linked Bond ABIL RF 0.43 Saffron MET Opportunity Income ABIL RF A 0.06 STANLIB Extra Income ABIL RF 0.04 Foreign Cash/Money Market 4.12 Local Cash/Money Market 0.15 Monthly Comment Last year s volatile global equity market has continued into the first quarter of this year. The MSCI AC World Index gained 0.08% while global bonds lost -4.74% in rand terms. The rand strengthened and managed to end the month on much firmer ground, at R14.65/US$. The US Federal Open Market Committee ( FOMC ) left its target range for the federal funds rate unchanged. The FOMC noted that the US economy was expanding at a moderate pace. Recent economic developments outside of the US have prompted the Federal Reserve to take a more cautious approach to raising interest rates in 2016. The unemployment rate increased to 5.0% from a previous 4.9%. Consumer inflation remained contained, easing to 1.0%. In South Africa, inflation accelerated and came in at a much higher than expected 7.0% y/y, after surging to 6.2% in January from 5.2% in December. The upward pressure came from higher food prices and higher transport costs. The South African Reserve Bank ( SARB ) lowered its inflation forecasts marginally, now expecting inflation to average 6.60% in 2016 from 6.80% previously. The SARB Monetary Policy Committee raised interest rates by 25 basis points after hiking rates by 50 basis points in January. The SARB currently expects the economy to grow by a modest 0.8% in 2016. The deterioration of growth coupled with an increasing interest rate environment suggests that the economy is potentially heading for stagflation. The JSE All Share Index ended the month up 6.44% led mostly by a strong recovery in Financials (11.51%). Resources and Industrials also produced positive returns ending the month up 5.08% and 7.84% respectively. SA Listed Property and bonds gained 9.48% and 2.63% respectively. We remain cautiously optimistic about the portfolios. Markets remain uncertain but our philosophy and investment approach has proven to be robust and effective in these challenging times. We urge investors to remain patient and committed to their chosen investment strategy. Momentum collective investments Ampersand Momentum CPI Plus 4 Fund of Funds (Class A) MDD as at March 2016 Published: 05 May 2016 Page 6 of 16
Disclosures Momentum Collective Investments (RF) (Pty) Ltd (the Manager ), registration number 1987/004287/07, is authorised in terms of the Collective Investment Schemes Control Act (CISCA) to administer Collective Investment Schemes (CIS) in Securities. The Manager is the manager of the Momentum Collective Investments Scheme, and MMI Holdings Ltd is a full member of the Association for Savings and Investment SA. Standard Bank of South Africa Limited (+27 (0)21 441 4100 PO Box 54, Cape Town, 8000) is the trustee of the scheme. Ampersand Momentum CPI Plus 4 Fund of Funds is a portfolio of the Momentum Collective Investments Scheme and Ampersand Asset Management (Pty) Ltd, registration number: 2007/006571/07, an approved financial services provider (FSP) under the Financial Advisory and Intermediary Services Act (No. 37 of 2002), FSP number: 33676, is responsible for managing the assets of this portfolio. CIS are generally medium to long-term investments. The value of participatory interests may go down as well as up and past performance is not necessarily a guide to the future. CIS are traded at ruling prices and can engage in borrowing and scrip lending. The CIS may borrow up to 10% of the market value of the portfolio to bridge insufficient liquidity. Different classes of units apply to portfolios, which are subject to different fees and charges. A schedule of fees and charges and maximum commissions is available on request from the Manager. The Manager reserves the right to close and reopen certain portfolios from time to time in order to manage them more efficiently in accordance with their mandate. Portfolios are valued daily at approx. 15h00, latest prices can be viewed at www.momentuminv.co.za. Forward pricing is used. Instructions must reach the Manager before 14h00 to ensure same-day value. The Manager does not provide any guarantee, either with respect to the capital or the return of this portfolio. Additional information on the proposed investment can be obtained, free of charge, at www.momentuminv.co.za or may be requested from the Manager. Ampersand Momentum CPI Plus 4 Fund of Funds is a Fund of Funds CIS portfolio. A Fund of Funds, apart from assets in liquid form, consists solely of participatory interests in portfolios of CIS, which may levy their own charges, which could result in a higher fee structure for Fund of Funds than some other forms of CIS portfolios. Ampersand Momentum CPI Plus 4 Fund of Funds is a third party named CIS portfolio, the assets of which are administered by Ampersand Asset Management (Pty) Ltd, registration number: 2007/006571/07, a registered financial services provider, FSP number: 33676. The Manager retains full legal responsibility for all third party named CIS portfolios under the Momentum Collective Investments Scheme. Contact and other information Scheme Momentum Collective Investments Scheme Custodian/Trustee Standard Bank of South Africa Limited Telephone: +27 (0)21 441 4100 Management company Momentum Collective Investments (RF) (Pty) Ltd 13th Floor Tower 2, 102 Rivonia Road, Sandton, 2196 Private Bag 9959, Sandton, 2146 Facsimile: +27 (0)12 675 3889 Call centre: 0860 111 899 ci.clientservice@momentum.co.za www.momentuminv.co.za Registration no.: 1987/004287/07 Third party manager Ampersand Asset Management (Pty) Ltd An authorised financial services provider, FSP No: 33676 1 Tuscany Office Park, 6 Coombe Place, Rivonia, 2191, Sandton, South Africa P.O. Box 926, Rivonia, 2128 Telephone: +27 (0)11 803 6597 Facsimile: +27 (0)11 803 6106 queries@ampersandam.co.za www.ampersandam.co.za Registration no.: 2007/006571/07 The Total Expense Ratio (TER) is the percentage of the net asset value of the class of the Financial Product incurred as expenses relating to the administration of the Financial Product. A higher TER does not necessarily imply a poor return, nor does a low TER imply a good return. A current TER may not necessarily be an accurate indication of future TER s. The disclosed TER is shown as an annual percentage based on data for the period from 01 January 2013 to 31 December 2015. The Transaction Costs (TC) is the percentage of the net asset value of the Financial Product incurred as costs relating to the buying and selling of the assets underlying the Financial Product. TC are a necessary cost in administering the Financial Product and impacts Financial Product returns. It should not be considered in isolation as returns may be impacted by many other factors over time including market returns, the type of Financial Product, the investment decisions of the investment manager and the TER. The disclosed TC is shown as an annual percentage based on data for the period from 01 January 2013 to 31 December 2015. The Total Investment Charges (TIC), the TER + the TC, is the percentage of the net asset value of the class of the Financial Product incurred as costs relating to the investment of the Financial Product. It should be noted that a TIC is the sum of two calculated ratios (TER+TC). The TER and TC have been calculated using historical actual and/or estimated data and are provided solely as an indication/guide as to the annual expenses/costs that could be incurred. These ratios do not represent any current/actual charges or fees. Performance is calculated for a portfolio/portfolio class. Individual investor returns may differ as a result of fees, actual date(s) of investment, date(s) of reinvestment of income and withholding tax. Annualised returns, also known as Compound Annualised Growth Rates (CAGR), are calculated from cumulative returns; they provide an indication of the average annual return achieved from an investment that was held for the stated time period. Actual annual figures are available from the Manager on request. Performance figures quoted are from Morningstar, as at 31/03/2016, for a lump sum investment, using NAV-NAV prices with income distributions reinvested on the ex-dividend date. CPI/Inflation figures, where present, are lagged by one month. This document should not be seen as an offer to purchase any specific product and is not to be construed as advice. Investors are encouraged to obtain independent professional investment and taxation advice before investing with or in any of the Manager s products. Momentum collective investments Ampersand Momentum CPI Plus 4 Fund of Funds (Class A) MDD as at March 2016 Published: 05 May 2016 Page 7 of 16
Ampersand Momentum CPI Plus 6 Fund of Funds Momentum Collective Investment Scheme (CIS) portfolio Class A Minimum Disclosure Document (MDD) as at 31 March 2016 Assets managed by: Ampersand Asset Management Portfolio Objective The portfolio aims to beat inflation by six percent over a three-year rolling period. The portfolio will be managed to achieve growth and will comply with the Prudential Investment Guidelines at all times. Investable Universe of Portfolio In order to achieve this objective, the assets normally included in the portfolio will consist of assets in liquid form and participatory interests of portfolios of collective investment schemes or other similar schemes in equity, bond, money or property markets, registered in South Africa, or portfolios of collective investment schemes or other similar schemes operated in territories with a regulatory environment which is to the satisfaction of the manager and trustee of a sufficient standard to provide investor protection at least equivalent to that in South Africa. The portfolio may invest in multi-asset class portfolios and is not limited to certain asset classes. The manager will be permitted to invest on behalf of the portfolio in offshore investments as permitted by legislation. The portfolio will aim to achieve a minimum of 60% and a maximum of 75% in equity exposure. Portfolio Performance Annualised returns (%) Portfolio information Portfolio inception 12 May 2008 Portfolio size R 395.69 million Launch date 12 May 2008 Launch price 100.00 (cpu) Latest price (31/03/2016) 163.54 (cpu) Benchmark ASISA sector Regulation 28 compliant Codes JSE ISIN CPI + 6% (after fees) SA - Multi Asset - High Equity Yes VPCFU ZAE000118949 Minimum investment Lump sum R 10,000 Monthly R 1,000 Portfolio managers Tom Barlow, BCom (Economics), CFA Portfolio charges Initial management fee Initial advisory fee Annual management fee Annual advisory fee 0% - 3.42% (incl. VAT) 0.798% p.a. (incl. VAT) 0% - 1.14% (incl. VAT) Cost ratios Total Expense Ratio (TER): 1.94% (incl. VAT) Transaction Costs (TC): Total Investment Charges (TER+TC): 1.94% (incl. VAT) Please see Disclosures section for further information on cost ratios Income distribution (cpu) Yearly returns (%) Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15 Mar 16 Fund 23.45 9.64 8.09 18.14 15.18 9.02 4.52 BM 12.03 9.89 12.35 12.19 12.27 10.14 13.52 Dividend Interest Total Dec'14 0.407 0.222 0.629 Jun'15 0.292 0.243 0.535 Nov'15 0.492 0.266 0.761 Dec'15 0.000 0.000 0.000 Apr'15 - Mar'16 0.783 0.510 1.297 Distribution takes place Semi-annually : June, December This table provides the individual 1 year returns, for both fund and benchmark that underlie the longer term annualised return periods provided in the bar chart above. Cumulative returns over 3 years (%) Momentum collective investments Ampersand Momentum CPI Plus 6 Fund of Funds (Class A) MDD as at March 2016 Published: 05 May 2016 Page 8 of 16
Risk/reward profile and 3 year statistics Standard deviation 1) 8.20 Sharpe ratio 2) 0.43 Largest negative monthly return -5.41 Number of positive months 25 / 36 1) Standard deviation measures the volatility of fund returns Specific risks The fund is permitted to invest in foreign securities which, within portfolios, may have additional material risks, depending on the specific risks affecting that country, such as: 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. Investors are reminded that an investment in a currency other than their own may expose them to a foreign exchange risk. 2) Sharpe ratio fund return minus cash return (STeFI composite), divided by the Standard deviation (of fund returns) Holdings Asset allocation (look through) Portfolio holdings (%) Ampersand Momentum Equity B 50.64 VPFP International Growth IC A 32.80 Ampersand Momentum Flex Property Inc 11.93 Saffron African Yield Opportunity B 3.66 Saffron MET Inflation Linked Bond B 0.69 Saffron MET Inflation Linked Bond ABIL RF 0.14 Local Cash/Money Market 0.14 Monthly Comment Last year s volatile global equity market has continued into the first quarter of this year. The MSCI AC World Index gained 0.08% while global bonds lost -4.74% in rand terms. The rand strengthened and managed to end the month on much firmer ground, at R14.65/US$. The US Federal Open Market Committee ( FOMC ) left its target range for the federal funds rate unchanged. The FOMC noted that the US economy was expanding at a moderate pace. Recent economic developments outside of the US have prompted the Federal Reserve to take a more cautious approach to raising interest rates in 2016. The unemployment rate increased to 5.0% from a previous 4.9%. Consumer inflation remained contained, easing to 1.0%. In South Africa, inflation accelerated and came in at a much higher than expected 7.0% y/y, after surging to 6.2% in January from 5.2% in December. The upward pressure came from higher food prices and higher transport costs. The South African Reserve Bank ( SARB ) lowered its inflation forecasts marginally, now expecting inflation to average 6.60% in 2016 from 6.80% previously. The SARB Monetary Policy Committee raised interest rates by 25 basis points after hiking rates by 50 basis points in January. The SARB currently expects the economy to grow by a modest 0.8% in 2016. The deterioration of growth coupled with an increasing interest rate environment suggests that the economy is potentially heading for stagflation. The JSE All Share Index ended the month up 6.44% led mostly by a strong recovery in Financials (11.51%). Resources and Industrials also produced positive returns ending the month up 5.08% and 7.84% respectively. SA Listed Property and bonds gained 9.48% and 2.63% respectively. We remain cautiously optimistic about the portfolios. Markets remain uncertain but our philosophy and investment approach has proven to be robust and effective in these challenging times. We urge investors to remain patient and committed to their chosen investment strategy. Momentum collective investments Ampersand Momentum CPI Plus 6 Fund of Funds (Class A) MDD as at March 2016 Published: 05 May 2016 Page 9 of 16
Disclosures Momentum Collective Investments (RF) (Pty) Ltd (the Manager ), registration number 1987/004287/07, is authorised in terms of the Collective Investment Schemes Control Act (CISCA) to administer Collective Investment Schemes (CIS) in Securities. The Manager is the manager of the Momentum Collective Investments Scheme, and MMI Holdings Ltd is a full member of the Association for Savings and Investment SA. Standard Bank of South Africa Limited (+27 (0)21 441 4100 PO Box 54, Cape Town, 8000) is the trustee of the scheme. Ampersand Momentum CPI Plus 6 Fund of Funds is a portfolio of the Momentum Collective Investments Scheme and Ampersand Asset Management (Pty) Ltd, registration number: 2007/006571/07, an approved financial services provider (FSP) under the Financial Advisory and Intermediary Services Act (No. 37 of 2002), FSP number: 33676, is responsible for managing the assets of this portfolio. CIS are generally medium to long-term investments. The value of participatory interests may go down as well as up and past performance is not necessarily a guide to the future. CIS are traded at ruling prices and can engage in borrowing and scrip lending. The CIS may borrow up to 10% of the market value of the portfolio to bridge insufficient liquidity. Different classes of units apply to portfolios, which are subject to different fees and charges. A schedule of fees and charges and maximum commissions is available on request from the Manager. The Manager reserves the right to close and reopen certain portfolios from time to time in order to manage them more efficiently in accordance with their mandate. Portfolios are valued daily at approx. 15h00, latest prices can be viewed at www.momentuminv.co.za. Forward pricing is used. Instructions must reach the Manager before 14h00 to ensure same-day value. The Manager does not provide any guarantee, either with respect to the capital or the return of this portfolio. Additional information on the proposed investment can be obtained, free of charge, at www.momentuminv.co.za or may be requested from the Manager. Ampersand Momentum CPI Plus 6 Fund of Funds is a Fund of Funds CIS portfolio. A Fund of Funds, apart from assets in liquid form, consists solely of participatory interests in portfolios of CIS, which may levy their own charges, which could result in a higher fee structure for Fund of Funds than some other forms of CIS portfolios. Ampersand Momentum CPI Plus 6 Fund of Funds is a third party named CIS portfolio, the assets of which are administered by Ampersand Asset Management (Pty) Ltd, registration number: 2007/006571/07, a registered financial services provider, FSP number: 33676. The Manager retains full legal responsibility for all third party named CIS portfolios under the Momentum Collective Investments Scheme. Contact and other information Scheme Momentum Collective Investments Scheme Custodian/Trustee Standard Bank of South Africa Limited Telephone: +27 (0)21 441 4100 Management company Momentum Collective Investments (RF) (Pty) Ltd 13th Floor Tower 2, 102 Rivonia Road, Sandton, 2196 Private Bag 9959, Sandton, 2146 Facsimile: +27 (0)12 675 3889 Call centre: 0860 111 899 ci.clientservice@momentum.co.za www.momentuminv.co.za Registration no.: 1987/004287/07 Third party manager Ampersand Asset Management (Pty) Ltd An authorised financial services provider, FSP No: 33676 1 Tuscany Office Park, 6 Coombe Place, Rivonia, 2191, Sandton, South Africa P.O. Box 926, Rivonia, 2128 Telephone: +27 (0)11 803 6597 Facsimile: +27 (0)11 803 6106 queries@ampersandam.co.za www.ampersandam.co.za Registration no.: 2007/006571/07 The Total Expense Ratio (TER) is the percentage of the net asset value of the class of the Financial Product incurred as expenses relating to the administration of the Financial Product. A higher TER does not necessarily imply a poor return, nor does a low TER imply a good return. A current TER may not necessarily be an accurate indication of future TER s. The disclosed TER is shown as an annual percentage based on data for the period from 01 January 2013 to 31 December 2015. The Transaction Costs (TC) is the percentage of the net asset value of the Financial Product incurred as costs relating to the buying and selling of the assets underlying the Financial Product. TC are a necessary cost in administering the Financial Product and impacts Financial Product returns. It should not be considered in isolation as returns may be impacted by many other factors over time including market returns, the type of Financial Product, the investment decisions of the investment manager and the TER. The disclosed TC is shown as an annual percentage based on data for the period from 01 January 2013 to 31 December 2015. The Total Investment Charges (TIC), the TER + the TC, is the percentage of the net asset value of the class of the Financial Product incurred as costs relating to the investment of the Financial Product. It should be noted that a TIC is the sum of two calculated ratios (TER+TC). The TER and TC have been calculated using historical actual and/or estimated data and are provided solely as an indication/guide as to the annual expenses/costs that could be incurred. These ratios do not represent any current/actual charges or fees. Performance is calculated for a portfolio/portfolio class. Individual investor returns may differ as a result of fees, actual date(s) of investment, date(s) of reinvestment of income and withholding tax. Annualised returns, also known as Compound Annualised Growth Rates (CAGR), are calculated from cumulative returns; they provide an indication of the average annual return achieved from an investment that was held for the stated time period. Actual annual figures are available from the Manager on request. Performance figures quoted are from Morningstar, as at 31/03/2016, for a lump sum investment, using NAV-NAV prices with income distributions reinvested on the ex-dividend date. CPI/Inflation figures, where present, are lagged by one month. This document should not be seen as an offer to purchase any specific product and is not to be construed as advice. Investors are encouraged to obtain independent professional investment and taxation advice before investing with or in any of the Manager s products. Momentum collective investments Ampersand Momentum CPI Plus 6 Fund of Funds (Class A) MDD as at March 2016 Published: 05 May 2016 Page 10 of 16
Ampersand Momentum Equity Fund Momentum Collective Investment Scheme (CIS) portfolio Class A Minimum Disclosure Document (MDD) as at 31 March 2016 Assets managed by: Ampersand Asset Management Portfolio Objective The Ampersand Momentum Equity Fund is an equity portfolio that seeks to sustain high long-term capital growth. Investable Universe of Portfolio The portfolio s investment universe consists of financially sound equity securities, preference shares, convertible bonds, property shares and property related securities listed on exchanges and assets in liquid form. The portfolio s equity exposure will always exceed 80% of its net asset value. The manager may also invest in participatory interests or any other form of participation in portfolios of collective investment schemes or other similar collective schemes which are consistent with the portfolio s investment policy. Where schemes are operated in territories other than South Africa, participatory interests will be included in the portfolio only where the regulatory environment is of sufficient standard to provide investor protection at least equal to that in South Africa. The portfolio may invest in financial instruments and may also include unlisted forward currency, interest rate and exchange rate swap transactions for efficient portfolio management purposes. Portfolio Performance Annualised returns (%) Portfolio information Portfolio inception 2 April 2013 Portfolio size R 890.99 million Launch date 2 April 2013 Launch price 100.00 (cpu) Latest price (31/03/2016) 116.29 (cpu) Benchmark ASISA sector Regulation 28 compliant Codes JSE ISIN FTSE/JSE SWIX J403T SA - Equity - General No AMECA ZAE000174827 Minimum investment Lump sum R 10,000 Monthly R 1,000 Portfolio managers Tom Barlow, BCom (Economics), CFA Portfolio charges Initial management fee Initial advisory fee 0% - 3.42% (incl. VAT) Annual management fee 1.71% p.a. (incl. VAT) Annual advisory fee 0% - 1.14% (incl. VAT) Performance fee 0% - 2.28% (incl. VAT) Sharing ratio 15% The performance fee applies to any excess performance of the fund relative to the benchmark measured over rolling two year periods. A fee of 15% of the fund's out-performance above the benchmark will be levied, capped at 2.28% (incl. VAT) per annum. Cost ratios Total Expense Ratio (TER): 1.45% (incl. VAT) Transaction Costs (TC): 0.20% (incl. VAT) Total Investment Charges (TER+TC): 1.65% (incl. VAT) Please see Disclosures section for further information on cost ratios Yearly returns (%) Mar 14 Mar 15 Mar 16 Fund 13.19 5.15-0.81 BM 24.48 17.73 2.65 This table provides the individual 1 year returns, for both fund and benchmark that underlie the longer term annualised return periods provided in the bar chart above. Cumulative returns over 3 years (%) Income distribution (cpu) Dividend Interest Total Jun'14 0.148 0.016 0.165 Dec'14 0.130 0.050 0.180 Jun'15 0.310 0.110 0.420 Dec'15 0.510 0.220 0.730 Apr'15 - Mar'16 0.820 0.330 1.150 Distribution takes place Semi-annually : June, December Momentum collective investments Ampersand Momentum Equity Fund (Class A) MDD as at March 2016 Published: 05 May 2016 Page 11 of 16
Risk/reward profile and 3 year statistics Standard deviation 1) 10.25 Sharpe ratio 2) 0.02 Largest negative monthly return -5.03 Number of positive months 19 / 36 1) Standard deviation measures the volatility of fund returns Specific risks The fund is a pure equity fund with a growth objective, suitable for long term investors with a high risk tolerance seeking correlation with local listed equities. It is permitted to invest in foreign securities which, within portfolios, may have additional material risks, depending on the specific risks affecting that country, such as: 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. Investors are reminded that an investment in a currency other than their own may expose them to a foreign exchange risk. 2) Sharpe ratio fund return minus cash return (STeFI composite), divided by the Standard deviation (of fund returns) Holdings Asset allocation Top holdings (%) Saffron MET Top 20 Fund B 19.46 MET General Equity Fund A 18.02 First Avenue SCI Equity Fund B1 17.51 Equity Index Swap 2.66% 141016 7.29 Eq Index Swap 0% 12122016 7.19 Anglogold Ashanti Ltd 2.90 Sasol Limited 1.67 Standard Bank Group Ltd 1.52 Reinet Investments S.C.A 1.20 Investec Plc 1.13 Monthly Comment Last year s volatile global equity market has continued into the first quarter of this year. The MSCI AC World Index gained 0.08% while global bonds lost -4.74% in rand terms. The rand strengthened and managed to end the month on much firmer ground, at R14.65/US$. The US Federal Open Market Committee ( FOMC ) left its target range for the federal funds rate unchanged. The FOMC noted that the US economy was expanding at a moderate pace. Recent economic developments outside of the US have prompted the Federal Reserve to take a more cautious approach to raising interest rates in 2016. The unemployment rate increased to 5.0% from a previous 4.9%. Consumer inflation remained contained, easing to 1.0%. In South Africa, inflation accelerated and came in at a much higher than expected 7.0% y/y, after surging to 6.2% in January from 5.2% in December. The upward pressure came from higher food prices and higher transport costs. The South African Reserve Bank ( SARB ) lowered its inflation forecasts marginally, now expecting inflation to average 6.60% in 2016 from 6.80% previously. The SARB Monetary Policy Committee raised interest rates by 25 basis points after hiking rates by 50 basis points in January. The SARB currently expects the economy to grow by a modest 0.8% in 2016. The deterioration of growth coupled with an increasing interest rate environment suggests that the economy is potentially heading for stagflation. The JSE All Share Index ended the month up 6.44% led mostly by a strong recovery in Financials (11.51%). Resources and Industrials also produced positive returns ending the month up 5.08% and 7.84% respectively. SA Listed Property gained 9.48%. We remain cautiously optimistic about the portfolios. Markets remain uncertain but our philosophy and investment approach has proven to be robust and effective in these challenging times. We urge investors to remain patient and committed to their chosen investment strategy. Momentum collective investments Ampersand Momentum Equity Fund (Class A) MDD as at March 2016 Published: 05 May 2016 Page 12 of 16
Disclosures Momentum Collective Investments (RF) (Pty) Ltd (the Manager ), registration number 1987/004287/07, is authorised in terms of the Collective Investment Schemes Control Act (CISCA) to administer Collective Investment Schemes (CIS) in Securities. The Manager is the manager of the Momentum Collective Investments Scheme, and MMI Holdings Ltd is a full member of the Association for Savings and Investment SA. Standard Bank of South Africa Limited (+27 (0)21 441 4100 PO Box 54, Cape Town, 8000) is the trustee of the scheme. Ampersand Momentum Equity Fund is a portfolio of the Momentum Collective Investments Scheme and Ampersand Asset Management (Pty) Ltd, registration number: 2007/006571/07, an approved financial services provider (FSP) under the Financial Advisory and Intermediary Services Act (No. 37 of 2002), FSP number: 33676, is responsible for managing the assets of this portfolio. CIS are generally medium to long-term investments. The value of participatory interests may go down as well as up and past performance is not necessarily a guide to the future. CIS are traded at ruling prices and can engage in borrowing and scrip lending. The CIS may borrow up to 10% of the market value of the portfolio to bridge insufficient liquidity. Different classes of units apply to portfolios, which are subject to different fees and charges. A schedule of fees and charges and maximum commissions is available on request from the Manager. The Manager reserves the right to close and reopen certain portfolios from time to time in order to manage them more efficiently in accordance with their mandate. Portfolios are valued daily at approx. 15h00, latest prices can be viewed at www.momentuminv.co.za. Forward pricing is used. Instructions must reach the Manager before 14h00 to ensure sameday value. The Manager does not provide any guarantee, either with respect to the capital or the return of this portfolio. Additional information on the proposed investment can be obtained, free of charge, at www.momentuminv.co.za or may be requested from the Manager. Ampersand Momentum Equity Fund is a third party named CIS portfolio, the assets of which are administered by Ampersand Asset Management (Pty) Ltd, registration number: 2007/006571/07, a registered financial services provider, FSP number: 33676. The Manager retains full legal responsibility for all third party named CIS portfolios under the Momentum Collective Investments Scheme. Contact and other information Scheme Momentum Collective Investments Scheme Custodian/Trustee Standard Bank of South Africa Limited Telephone: +27 (0)21 441 4100 Management company Momentum Collective Investments (RF) (Pty) Ltd 13th Floor Tower 2, 102 Rivonia Road, Sandton, 2196 Private Bag 9959, Sandton, 2146 Facsimile: +27 (0)12 675 3889 Call centre: 0860 111 899 ci.clientservice@momentum.co.za www.momentuminv.co.za Registration no.: 1987/004287/07 Third party manager Ampersand Asset Management (Pty) Ltd An authorised financial services provider, FSP No: 33676 1 Tuscany Office Park, 6 Coombe Place, Rivonia, 2191, Sandton, South Africa P.O. Box 926, Rivonia, 2128 Telephone: +27 (0)11 803 6597 Facsimile: +27 (0)11 803 6106 queries@ampersandam.co.za www.ampersandam.co.za Registration no.: 2007/006571/07 The Total Expense Ratio (TER) is the percentage of the net asset value of the class of the Financial Product incurred as expenses relating to the administration of the Financial Product. A higher TER does not necessarily imply a poor return, nor does a low TER imply a good return. A current TER may not necessarily be an accurate indication of future TER s. The disclosed TER is shown as an annual percentage based on data for the period from 02 April 2013 to 31 December 2015. Inclusive in the disclosed TER, the TER PF (%) shows the performance fee, as a percentage of the net asset value of the class of the Financial Product, that was recovered. The Transaction Costs (TC) is the percentage of the net asset value of the Financial Product incurred as costs relating to the buying and selling of the assets underlying the Financial Product. TC are a necessary cost in administering the Financial Product and impacts Financial Product returns. It should not be considered in isolation as returns may be impacted by many other factors over time including market returns, the type of Financial Product, the investment decisions of the investment manager and the TER. The disclosed TC is shown as an annual percentage based on data for the period from 02 April 2013 to 31 December 2015. The Total Investment Charges (TIC), the TER + the TC, is the percentage of the net asset value of the class of the Financial Product incurred as costs relating to the investment of the Financial Product. It should be noted that a TIC is the sum of two calculated ratios (TER+TC). The TER and TC have been calculated using historical actual and/or estimated data and are provided solely as an indication/guide as to the annual expenses/costs that could be incurred. These ratios do not represent any current/actual charges or fees. Performance is calculated for a portfolio/portfolio class. Individual investor returns may differ as a result of fees, actual date(s) of investment, date(s) of reinvestment of income and withholding tax. Annualised returns, also known as Compound Annualised Growth Rates (CAGR), are calculated from cumulative returns; they provide an indication of the average annual return achieved from an investment that was held for the stated time period. Actual annual figures are available from the Manager on request. Performance figures quoted are from Morningstar, as at 31/03/2016, for a lump sum investment, using NAV-NAV prices with income distributions reinvested on the ex-dividend date. CPI/Inflation figures, where present, are lagged by one month. This document should not be seen as an offer to purchase any specific product and is not to be construed as advice. Investors are encouraged to obtain independent professional investment and taxation advice before investing with or in any of the Manager s products. Momentum collective investments Ampersand Momentum Equity Fund (Class A) MDD as at March 2016 Published: 05 May 2016 Page 13 of 16
Ampersand Momentum Flexible Property Income Fund Momentum Collective Investment Scheme (CIS) portfolio Class A Minimum Disclosure Document (MDD) as at 31 March 2016 Assets managed by: Ampersand Asset Management Portfolio Objective The Ampersand Momentum Flexible Property Income Fund is a specialist portfolio with the objective to provide investors with a combination of high income and long term capital appreciation by investing in income generating and property securities. Investable Universe of Portfolio The portfolio s investment universe will be property securities, property collective investment schemes, property loan stock, Real Estate equity, fixed interest securities (including, but not limited to, bonds, corporate bonds, inflation linked bonds, convertible bonds, cash deposits and money market instruments), debentures, preference shares, non-equity securities, derivatives and assets in liquid form. The minimum portfolio s exposure to JSE listed property shares, property loan stock and property portfolios will be 33% of the portfolio's market value. The portfolio may from time to time invest in listed and unlisted financial instruments, in accordance with the provisions of the Act, and the Regulations thereto, as amended from time to time, in order to achieve the portfolio s investment objective. Portfolio Performance Annualised returns (%) Portfolio information Portfolio inception 1 November 2013 Portfolio size R 538.91 million Launch date 1 November 2013 Launch price 100.00 (cpu) Latest price (31/03/2016) 128.74 (cpu) Benchmark ASISA sector Regulation 28 compliant Codes JSE ISIN Composite (67% FTSE/JSE J253T, 33% STeFI Composite) SA - Real Estate - General No AFICA ZAE000179362 Minimum investment Lump sum R 10,000 Monthly R 1,000 Portfolio managers Tom Barlow, BCom (Economics), CFA Portfolio charges Initial management fee Initial advisory fee Annual management fee Annual advisory fee 0% - 3.42% (incl. VAT) 1.71% p.a. (incl. VAT) 0% - 1.14% (incl. VAT) Cost ratios Total Expense Ratio (TER): 1.78% (incl. VAT) Transaction Costs (TC): Total Investment Charges (TER+TC): 1.78% (incl. VAT) Please see Disclosures section for further information on cost ratios Income distribution (cpu) Yearly returns (%) Mar 15 Mar 16 Fund 36.89 1.90 BM 28.79 5.71 Dividend Interest Total Jun'15 1.230 0.110 1.370 Sep'15 0.580 0.150 0.730 Dec'15 1.530 0.170 1.700 Mar'16 1.470 0.030 1.500 Apr'15 - Mar'16 4.810 0.460 5.300 Distribution takes place Quarterly : March, June, September, December This table provides the individual 1 year returns, for both fund and benchmark that underlie the longer term annualised return periods provided in the bar chart above. Cumulative returns over 3 years (%) Momentum collective investments Ampersand Momentum Flexible Property Income Fund (Class A) MDD as at March 2016 Published: 05 May 2016 Page 14 of 16
Risk/reward profile and 2 year statistics Standard deviation 1) 11.01 Sharpe ratio 2) 1.01 Largest negative monthly return -6.22 Number of positive months 18 / 24 1) Standard deviation measures the volatility of fund returns Specific risks The fund is a pure equity fund with a growth objective, suitable for long term investors with a high risk tolerance seeking correlation with local listed property. It is permitted to invest in foreign securities which, within portfolios, may have additional material risks, depending on the specific risks affecting that country, such as: 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. Investors are reminded that an investment in a currency other than their own may expose them to a foreign exchange risk. 2) Sharpe ratio fund return minus cash return (STeFI composite), divided by the Standard deviation (of fund returns) Holdings Asset allocation Top holdings (%) Sesfikile BCI Property B 20.05 Nedgroup Inv Property A1 18.34 STANLIB Property Income B6 18.00 New Europe Prop Inv Plc 4.51 Redefine Properties Ltd 2.90 Growthpoint Properties Limited 2.54 Delta Property Fund Ltd 2.33 Delta Int Prop Hldg Ltd 2.23 Fairvest Property Holdings Limited 2.18 Arrowhead Properties Limited A 2.16 Monthly Comment Last year s volatile global equity market has continued into the first quarter of this year. The MSCI AC World Index gained 0.08% while global bonds lost -4.74% in rand terms. The rand strengthened and managed to end the month on much firmer ground, at R14.65/US$. The US Federal Open Market Committee ( FOMC ) left its target range for the federal funds rate unchanged. The FOMC noted that the US economy was expanding at a moderate pace. Recent economic developments outside of the US have prompted the Federal Reserve to take a more cautious approach to raising interest rates in 2016. The unemployment rate increased to 5.0% from a previous 4.9%. Consumer inflation remained contained, easing to 1.0%. In South Africa, inflation accelerated and came in at a much higher than expected 7.0% y/y, after surging to 6.2% in January from 5.2% in December. The upward pressure came from higher food prices and higher transport costs. The South African Reserve Bank ( SARB ) lowered its inflation forecasts marginally, now expecting inflation to average 6.60% in 2016 from 6.80% previously. The SARB Monetary Policy Committee raised interest rates by 25 basis points after hiking rates by 50 basis points in January. The SARB currently expects the economy to grow by a modest 0.8% in 2016. The deterioration of growth coupled with an increasing interest rate environment suggests that the economy is potentially heading for stagflation. SA Listed Property was the top performing asset class, gained 9.48%. We remain cautiously optimistic about the portfolios. Markets remain uncertain but our philosophy and investment approach has proven to be robust and effective in these challenging times. We urge investors to remain patient and committed to their chosen investment strategy. Momentum collective investments Ampersand Momentum Flexible Property Income Fund (Class A) MDD as at March 2016 Published: 05 May 2016 Page 15 of 16
Disclosures Momentum Collective Investments (RF) (Pty) Ltd (the Manager ), registration number 1987/004287/07, is authorised in terms of the Collective Investment Schemes Control Act (CISCA) to administer Collective Investment Schemes (CIS) in Securities. The Manager is the manager of the Momentum Collective Investments Scheme, and MMI Holdings Ltd is a full member of the Association for Savings and Investment SA. Standard Bank of South Africa Limited (+27 (0)21 441 4100 PO Box 54, Cape Town, 8000) is the trustee of the scheme. Ampersand Momentum Flexible Property Income Fund is a portfolio of the Momentum Collective Investments Scheme and Ampersand Asset Management (Pty) Ltd, registration number: 2007/006571/07, an approved financial services provider (FSP) under the Financial Advisory and Intermediary Services Act (No. 37 of 2002), FSP number: 33676, is responsible for managing the assets of this portfolio. CIS are generally medium to long-term investments. The value of participatory interests may go down as well as up and past performance is not necessarily a guide to the future. CIS are traded at ruling prices and can engage in borrowing and scrip lending. The CIS may borrow up to 10% of the market value of the portfolio to bridge insufficient liquidity. Different classes of units apply to portfolios, which are subject to different fees and charges. A schedule of fees and charges and maximum commissions is available on request from the Manager. The Manager reserves the right to close and reopen certain portfolios from time to time in order to manage them more efficiently in accordance with their mandate. Portfolios are valued daily at approx. 15h00, latest prices can be viewed at www.momentuminv.co.za. Forward pricing is used. Instructions must reach the Manager before 14h00 to ensure same-day value. The Manager does not provide any guarantee, either with respect to the capital or the return of this portfolio. Additional information on the proposed investment can be obtained, free of charge, at www.momentuminv.co.za or may be requested from the Manager. Ampersand Momentum Flexible Property Income Fund is a third party named CIS portfolio, the assets of which are administered by Ampersand Asset Management (Pty) Ltd, registration number: 2007/006571/07, a registered financial services provider, FSP number: 33676. The Manager retains full legal responsibility for all third party named CIS portfolios under the Momentum Collective Investments Scheme. Contact and other information Scheme Momentum Collective Investments Scheme Custodian/Trustee Standard Bank of South Africa Limited Telephone: +27 (0)21 441 4100 Management company Momentum Collective Investments (RF) (Pty) Ltd 13th Floor Tower 2, 102 Rivonia Road, Sandton, 2196 Private Bag 9959, Sandton, 2146 Facsimile: +27 (0)12 675 3889 Call centre: 0860 111 899 ci.clientservice@momentum.co.za www.momentuminv.co.za Registration no.: 1987/004287/07 Third party manager Ampersand Asset Management (Pty) Ltd An authorised financial services provider, FSP No: 33676 1 Tuscany Office Park, 6 Coombe Place, Rivonia, 2191, Sandton, South Africa P.O. Box 926, Rivonia, 2128 Telephone: +27 (0)11 803 6597 Facsimile: +27 (0)11 803 6106 queries@ampersandam.co.za www.ampersandam.co.za Registration no.: 2007/006571/07 The Total Expense Ratio (TER) is the percentage of the net asset value of the class of the Financial Product incurred as expenses relating to the administration of the Financial Product. A higher TER does not necessarily imply a poor return, nor does a low TER imply a good return. A current TER may not necessarily be an accurate indication of future TER s. The disclosed TER is shown as an annual percentage based on data for the period from 01 November 2013 to 31 December 2015. The Transaction Costs (TC) is the percentage of the net asset value of the Financial Product incurred as costs relating to the buying and selling of the assets underlying the Financial Product. TC are a necessary cost in administering the Financial Product and impacts Financial Product returns. It should not be considered in isolation as returns may be impacted by many other factors over time including market returns, the type of Financial Product, the investment decisions of the investment manager and the TER. The disclosed TC is shown as an annual percentage based on data for the period from 01 November 2013 to 31 December 2015. The Total Investment Charges (TIC), the TER + the TC, is the percentage of the net asset value of the class of the Financial Product incurred as costs relating to the investment of the Financial Product. It should be noted that a TIC is the sum of two calculated ratios (TER+TC). The TER and TC have been calculated using historical actual and/or estimated data and are provided solely as an indication/guide as to the annual expenses/costs that could be incurred. These ratios do not represent any current/actual charges or fees. Performance is calculated for a portfolio/portfolio class. Individual investor returns may differ as a result of fees, actual date(s) of investment, date(s) of reinvestment of income and withholding tax. Annualised returns, also known as Compound Annualised Growth Rates (CAGR), are calculated from cumulative returns; they provide an indication of the average annual return achieved from an investment that was held for the stated time period. Actual annual figures are available from the Manager on request. Performance figures quoted are from Morningstar, as at 31/03/2016, for a lump sum investment, using NAV-NAV prices with income distributions reinvested on the ex-dividend date. CPI/Inflation figures, where present, are lagged by one month. This document should not be seen as an offer to purchase any specific product and is not to be construed as advice. Investors are encouraged to obtain independent professional investment and taxation advice before investing with or in any of the Manager s products. Momentum collective investments Ampersand Momentum Flexible Property Income Fund (Class A) MDD as at March 2016 Published: 05 May 2016 Page 16 of 16