The Momentum Target 3 Fund of Funds is a multi-asset Fund of Funds portfolio with the objective to secure consistent real returns net of fees in excess of inflation + 2% p.a. over rolling three year periods through an investment strategy that is executed through a combination of active asset allocation and predominately passive and enhanced passive investment strategies.
The portfolio will, apart from assets in liquid form, consist solely of participatory interests and other forms of participation in local and global collective investment scheme portfolios, or other similar schemes operated in territories with a regulatory environment that 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, and which is consistent with the portfolio's primary objective, investing in, equity securities, property securities, non-equity securities, money market instruments, preference shares, government and corporate bonds, inflation linked bonds and other interest bearing securities and investments, listed and unlisted financial instruments and participatory interests in collective investment scheme portfolios. The underlying collective investment scheme portfolios to be included in the portfolio will be passive index trackers or make use of smart beta strategies which employ a rules based index approach to investing to provide balanced, prudent low cost exposure to the respective asset classes. In certain instances collective investment scheme portfolios which make use of active investment strategies will be included on a limited basis.
The portfolio will be managed in line with prudential investment guidelines for retirement funds in South Africa to the extent allowed for by the Act. To provide modest growth in income and capital over the long term with a limited level of capital protection the portfolios equity exposure will range between 0% and 40% of the portfolios net asset value.
The portfolio may from time to time invest in listed and unlisted financial instruments, for the purpose of hedging exchange rate risk in accordance with the provisions of the Act and applicable legislation as amended from time to time, in order to achieve the portfolio's investment objective.
Nothing in this Supplemental Deed shall preclude the Manager from varying the ratios of securities or assets in liquid form in changing economic environment or market conditions, or to meet the requirements in terms of legislation and from retaining cash or placing cash on deposit in terms of the Deed and this Supplemental Deed.
The Trustee shall ensure that the investment policy set out in this Supplemental Deed is carried out.
For the purposes of this portfolio, the manager shall reserve the right to close the portfolio to new investors on a date determined by the manager. This will be done in order to manage the portfolio in accordance with its mandate. The manager may once a portfolio has bene closed open that portfolio again to new investors on a date determined by the manager.