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Investment solutions for retirement funds

Financial certainty for retirement.

Momentum has been the market leader in Smooth Bonus products since 1990, providing retirement fund members with a highly dependable investment, continuous capital protection on their benefits and smooth inflation-beating returns.


Fund information
Momentum Multi-Manager Smooth Growth Fund Global Open

Momentum's multi-managed partially vesting Smooth Growth Fund Global offers global investment exposure. It uses the right blend of independent best-of-breed managers, selected within a rigorous portfolio construction process.

How it works

This is a policy of insurance. Investors receive a guaranteed return of their capital invested plus accumulated fully vesting bonuses added at the date of a benefit payment (resignation, retirement, death, disability). The guarantee also applies to retrenchments, subject to an overall limit on retrenchment payments.

It targets a smoothed return of CPI + 4% per annum, net of charges, over a five-year time horizon.

The Fund maintains a long-term strategic asset allocation designed to optimise the risk-return profile relative to its objective.

The portfolio has a value bias and best-of-breed asset managers are awarded mandates per asset class.

It is particularly appropriate for:

  • Long-term investors seeking to plan with confidence for retirement;
  • Investors who would like to benefit from the upside potential of volatile investments like equities but require downside protection for their benefits in the event of a market decline.

Differentiating features

  • Investors receive a guaranteed return of their capital invested plus accumulated fully vesting bonuses at the date of a benefit payment.
  • Investors enjoy explicit downside protection while benefitting from the upside potential of volatile investments like equities.
  • Exposure to growth assets (equity and property) in the strategic asset allocation is in excess of 70%.
  • Rigorous portfolio construction, utilising a highly respected asset consultant and the optimal blend of best of breed asset managers.
  • As at December 2013 MMSGF Global has achieved a 10-year annualised return in excess of CPI + 6.50% p.a., net of the capital charge.
  • Note that past performance cannot be extrapolated into the future and is not always an indication of future performance.
  • Competitive investment management fee.
Momentum Multi-Manager Smooth Growth Fund Local Open

Momentum's multi-managed partially vesting Smooth Growth Fund Local uses the optimal blend of independent best-of-breed managers, selected using a thorough portfolio construction process.

How it works

This is a policy of insurance. Investors receive a guaranteed return of their capital invested plus accumulated fully vesting bonuses added at the date of a benefit payment (resignation, retirement, death, disability). The guarantee also applies to retrenchments, subject to an overall limit on retrenchment payments.

The Fund targets a smoothed return of CPI + 4% per annum, net of charges, over a five-year time horizon. The Fund maintains a long-term strategic asset allocation that is designed to optimise its risk-return profile relative to its objective.

The portfolio has a value bias and best-of-breed asset managers are awarded mandates per asset class.

It is particularly appropriate for:

  • Long-term investors seeking to plan with confidence for retirement;
  • Investors who would like to benefit from the upside potential of volatile investments like equities but require downside protection for their benefits in the event of a market decline.

Differentiating features

  • Investors receive a guaranteed return of their capital invested plus accumulated fully vesting bonuses at the date of a benefit payment.
  • Investors enjoy explicit downside protection while benefitting from the upside potential of volatile investments like equities.
  • Exposure to growth assets (equity and property) in the strategic asset allocation is in excess of 70%.
  • Rigorous portfolio construction, utilising a highly respected asset consultant and the optimal blend of best-of-breed asset managers.
  • As at December 2013 MMSGF Local has achieved a 10-year annualised return in excess of CPI + 8.50% p.a., net of the capital charge.
  • Note that past performance cannot be extrapolated into the future and is not always an indication of future performance.
  • Competitive investment management fee.
Momentum Multi-Manager Secure Growth Fund Global Open

Momentum's multi-managed fully vesting smooth bonus Secure Growth Fund offers global investment exposure. It also uses the optimal blend of independent best-of-breed managers to deliver on its mandate.

How it works

This is a policy of insurance. Investors receive a guaranteed return of their capital invested plus bonuses added at the date of a benefit payment (resignation, retirement, death, disability). The guarantee also applies to retrenchments, subject to an overall limit on retrenchment payments.

The Fund targets a smoothed return of CPI + 2% per annum, net of charges, over a five-year time horizon. The Fund maintains a long-term strategic asset allocation that is designed to optimise its risk-return profile relative to its objective.

The portfolio has a value bias and best of breed asset managers are awarded mandates per asset class.

It is particularly appropriate for:

  • Long-term investors seeking to plan with confidence for retirement;
  • Investors who would like to benefit from the upside potential of volatile investments like equities but require downside protection for their benefits in the event of a market decline.

Differentiating features

  • Investors receive a guaranteed return of their capital invested plus accumulated bonuses at the date of a benefit payment.
  • Investors enjoy explicit downside protection while benefitting from the upside potential of volatile investments like equities.
  • Exposure to growth assets (equity and property) in the strategic asset allocation is in excess of 60%.
  • Rigorous portfolio construction, utilising a highly respected asset consultant and the optimal blend of best of breed asset managers.
  • Competitive investment management fee
Momentum Smooth Growth Fund Global Open

Momentum's partially vesting Smooth Growth Fund Global offers global investment exposure, with underlying assets astutely managed by Momentum Asset Management.

How it works

This is a policy of insurance. Investors receive a guaranteed return of their capital invested plus accumulated fully vesting bonuses added at the date of a benefit payment (resignation, retirement, death, disability). The guarantee also applies to retrenchments, subject to an overall limit on retrenchment payments.

The Fund targets inflation-beating returns over the long term and maintains a long-term strategic asset allocation that is designed to optimise the risk-return profile.

It is particularly appropriate for:

  • Long-term investors seeking to plan with confidence for retirement;
  • Investors who would like to benefit from the upside potential of volatile investments like equities but require downside protection for their benefits in the event of a market decline.

Differentiating features

  • Investors receive a guaranteed return of their capital invested plus accumulated fully vesting bonuses at the date of a benefit payment.
  • Investors enjoy explicit downside protection while benefitting from the upside potential of volatile investments like equities.
  • Exposure to growth assets (equity and property) in the strategic asset allocation is in excess of 70%.
  • As at December 2013 SGF Global has achieved a 10-year annualised return in excess of CPI + 6.50% p.a., net of the capital charge.
  • Note that past performance cannot be extrapolated into the future and is not always an indication of future performance.
  • Competitive investment management fee.
Momentum Capital Plus Fund Open

Momentum's fully vesting smooth bonus Capital Plus Fund offers global investment exposure. Investors enjoy a daily capital guarantee which means that the product has no market value adjustment feature on termination.

How it works

The Fund targets a return of at least CPI + 3% per annum over a three year time horizon, net of charges.

Rand Merchant Bank has been mandated to manage the underlying assets. Protected growth strategies are implemented using a combination of money market instruments, inflation-linked and nominal bonds, equities and alternative investments (including private equity and hedge funds).

It is particularly appropriate for:

  • Long-term investors seeking to plan with confidence for retirement;
  • Investors who would like to benefit from the upside potential of volatile investments like equities but require downside protection for their benefits in the event of a market decline.

Differentiating features

  • Investors receive a guaranteed return of their capital invested plus accumulated bonuses, even on termination.
  • Investors enjoy explicit downside protection while benefitting from the upside potential of volatile investments like equities.
  • Innovative portfolio construction.
  • Competitive fees.
Momentum Smart Guaranteed + 3 Open

Momentum's multi-managed fully vesting smooth bonus Smart Guarantee + 3 offers global investment exposure. The liability-driven investment strategy secures the guarantee and allows for participation in 80% of the returns generated by the bonus-generating portfolio.

How it works

This is a policy of insurance. Investors receive a guaranteed return of their capital invested plus bonuses added at the date of a benefit payment (resignation, retirement, death, disability). The guarantee also applies to retrenchments, subject to an overall limit on retrenchment payments.

The Fund targets an average smoothed return of CPI + 3% per annum, net of charges, over a seven-year time horizon.

Momentum Enhanced Factor 7 is the bonus-generating portfolio and is managed by Momentum Outcome Based Solutions. It is a diverse multi-managed portfolio with an active bias, benchmarked against an 80% allocation to local and global equities and property. All combinations of asset classes are considered and an optimum allocation is selected to achieve the portfolio’s objective with a high degree of certainty.

It is particularly appropriate for:

  • Long-term investors seeking to plan with confidence for retirement;
  • Investors who would like to benefit from the upside potential of volatile investments like equities but require downside protection for their benefits in the event of a market decline.

Differentiating features

  • Investors receive a guaranteed return of their capital invested plus accumulated bonuses.

  • Investors enjoy explicit downside protection while benefitting from the upside potential of volatile investments like equities.
  • Exposure to growth assets (equity and property) in the strategic asset allocation of the bonus generating portfolio is 80%.
  • Competitive fee.
  • The capital guarantee is provided for by means of the participation rate in the bonus- generating portfolio, which results in the investor paying for the guarantee when it can best be afforded.
  • The bonus smoothing formula used is transparent and allows for a clear translation from underlying asset returns to bonuses.
  • Cross-subsidy (which is an inherent feature of smooth bonus portfolios) is smaller.
  • Potential market value adjustment on termination payments (not benefit payments) are expected to be smaller and allow for easier exit.
Momentum Index Guaranteed Investments Open

Momentum Index Guaranteed Investments offer exposure to a number of different asset classes. Momentum guarantees that investors will earn the total return of published indices at a zero tracking error.

How it works

Momentum offers exposure to a number of different asset classes. These include the total return indices for local equity, fixed-interest and inflation-linked bonds, as well as an offshore equity index.

It is important to note that an active management process is not used to achieve the return objective, and this results in a lower cost to the investor.

It is particularly appropriate for:

  • Investors who want certainty about earning the return of various asset classes, as measured by the total return of published asset class indices, at a low cost.
  • Investors who prefer passive asset management.
  • Momentum Index Guaranteed Investments provides an alternative to gaining market exposure and can be used in any portfolio construction process that aims to keep costs down, such as:
  • Building a portfolio entirely from Momentum Index Guaranteed Investment components.
  • Gaining core exposure to an asset class and then choosing satellite managers to try and earn a return above the index.

Differentiating features

  • Low cost.
  • Zero tracking error.
  • Full liquidity on normal benefit payments.