Momentum MoM Target Factor Portfolio Range...The portfolio has a composite benchmark weighted to the following asset classes: Asset class Allocation Benchmark Local equities1 47.5%

Momentum MoM Target Factor TMPortfolio Range (an enhanced beta range)

Indexation and enhanced-index passive and enhanced passive strategies within most of the asset classes (i.e. equities, property, bonds and cash) are used in the investment mandates selected to for the Momentum MoM

TMTarget Factor Portfolio Range to achieve exposure to various markets and strategies at the least relative cost to the investor. Limited active strategies are added to increase the probability of the portfolios achieving their objectives. The portfolios are complemented by investments in absolute-return strategies and inflation-linked bonds.

The portfolios are invested in predominantly liquid securities and/or instruments. For this reason, they are characterised by mainly

large-capitalisation security exposure and limited exposure to credit instruments.

The portfolios were created with a specific focus on reducing the overall policy fee and total expense ratio by using predominantly passive and enhanced passive investment strategies, compared to other activeely managed portfolios. The portfolios have significantly lower policy fees due to the nature of the strategies used. They therefore also have lower total expense ratios than many comparable risk-profiled portfolios.

Source: Momentum Inestments (Pty) Ltd

Strategy allocation

65.0%57.5%

47.5%

27.0%18.5%

20.0%

25.0%

10.0%15.0%

30.0% 33.0% 39.0%

2.5%2.5%

5.0%7.5%25.0% 25.0%

20.0%15.0%

10.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Target Factor 7 Target Factor 6 Target Factor 5 Target Factor 4 Target Factor 3

Local equities and property Local absolute return Local fixed interest Local commodities Global

investments

Investment portfolio informationInception date: 1 August 2011Risk classification:

Investment strategy

Investment portfolio mandateThe long-term return objective of this portfolio is inflation plus 7% a year over seven-year rolling periods. The aim is to achieve the objective with a high degree of certainty, which is done by using indexation and enhanced-index strategies in the investment mandates. The risk of exposure to losses in the short term is continually managed by maximising diversification to various markets and strategies at the least relative cost to the investor. This portfolio is managed in accordance with the investment limitations set out in Regulation 28 of the Pension Funds Act.

Asset and benchmark allocationThe portfolio has a composite benchmark weighted to the following asset classes: Asset class Allocation Benchmark

1Local equities 55.0% FTSE/JSE Shareholder Weighted All Share Index1Local property 10.0% FTSE/JSE SA Listed Property Index

Local bonds 5.0% Bond Exchange Association of SA All Bond IndexLocal inflation-linked bonds 5.0% Barclays BEASSA SA Government Inflation-linked Bond Index

1Global equities 20.0% MSCI All Countries World Index Global bonds 5.0% Citigroup World Government Bond IndexKey:1. A total allocation of 85% to growth asset classes.

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 an 85% allocation to local equities and property as well as global equities. Although these asset classes are volatile, they generally provide returns above inflation over the long term. The portfolio was created with a specific focus on reducing the overall policy fee and total expense ratio, by using predominantly passive and enhanced passive investment strategies, compared to other risk-profiled portfolios.

Dynamic rebalancing of asset classes is applied to this portfolio, which is a rebalancing methodology that enhances investment returns without compromising on the acceptable level of risk or the probability of achieving the portfolio�s targeted return. The actual asset allocation is adjusted by up-weighting or down-weighting an asset class from the strategic allocation with a maximum tolerance limit, according to the risk tolerance of the portfolio.

Risk classification description The portfolio may experience a high degree of volatility in the short term due to

the high equity and property content Investment returns are expected to track benchmark returns closely as

indexation and enhanced-indexation strategies are used The portfolio is invested in predominantly liquid securities and/or instruments

TMMomentum MoM Portfolio RangeTarget Factor Momentum MoM PortfolioTarget Factor 7

Important informationMomentum Outcome-based Solutions (Pty) Ltd, registration number 2004/023064/07, is an authorised financial services provider, FSP licence number 19840. 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. 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 Outcome-based Solutions (Pty) Ltd to manage the investments in respect of the portfolio. The retirement fund agrees that 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.

investments

Outcome-based solutions for businessesMomentum MoM Target Factor 7 Portfolio

Term

Risk

Very short

Very low

Very long

Very high

Medium

Medium

Published: November 2017


Investment strategy

Investment portfolio mandateThe long-term return objective of this portfolio is inflation plus 6% a year over six-year rolling periods. The aim is to achieve the objective with a high degree of certainty, which is done by using indexation and enhanced-index strategies in the investment mandates. The risk of exposure to losses in the short term is continually managed by maximising diversification to various markets and strategies at the least relative cost to the investor. This portfolio is managed in accordance with the investment limitations set out in Regulation 28 of the Pension Funds Act.



Local bonds 5.0% Bond Exchange Association of SA All Bond IndexLocal cash 5.0% Short-term Fixed Interest Composite IndexLocal inflation-linked bonds 5.0% Barclays BEASSA SA Government Inflation-linked Bond IndexLocal commodities 2.5% Short-term Fixed Interest Composite Index

1Global equities 20.0% MSCI All Countries World Index Global bonds 5.0% Citigroup World Government Bond IndexKey:1. A total allocation of 77.5% to growth asset classes.

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 long-term investment horizon and should still have a significant allocation to growth asset classes. However, a small allocation to defensive asset classes is included in the portfolio. The portfolio is benchmarked against a 77.5% allocation to local equities and property as well as global equities. Although these asset classes are volatile, they generally provide returns above inflation over the long term. The portfolio was created with a specific focus on reducing the overall policy fee and total expense ratio, by using predominantly passive and enhanced passive investment strategies, compared to other risk-profiled portfolios.


Risk classification description The portfolio may experience a high degree of volatility in the short term due to

the high equity and property content Investment returns are expected to track benchmark returns closely as


investments

Momentum MoM PortfolioTarget Factor 6


TMMomentum MoM Portfolio RangeTarget Factor


Term

Risk

Very short

Very low

Very long

Very high

Medium

Medium



Investment strategy

Investment portfolio mandateThe long-term return objective of this portfolio is inflation plus 5% a year over five-year rolling periods. The aim is to achieve the objective with a high degree of certainty, which is done by using indexation and enhanced-index strategies in the investment mandates. The risk of exposure to losses in the short term is continually managed by maximising diversification to various markets and strategies at the least relative cost to the investor. This portfolio is managed in accordance with the investment limitations set out in Regulation 28 of the Pension Funds Act.





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- to long-term investment horizon and should be invested in a balance of growth and defensive asset classes. This is achieved by the portfolio being benchmarked against a 62.5% allocation to local equities and property as well as global equities to achieve growth. The remaining 37.5% is benchmarked against investments that should preserve the purchasing power of the capital accumulated. The portfolio was created with a specific focus on reducing the overall policy fee and total expense ratio, by using predominantly passive and enhanced passive investment strategies, compared to other risk-profiled portfolios.


Risk classification description The portfolio may experience a degree of volatility in the short term due to the

limited equity and property content Investment returns are expected to track benchmark returns closely as


investments





Term

Risk

Very short

Very low

Very long

Very high

Medium

Medium



Investment strategy

Investment portfolio mandateThe long-term return objective of this portfolio is inflation plus 4% a year over four-year rolling periods. The aim is to achieve the objective with a high degree of certainty, which is done by using indexation and enhanced-index strategies in the investment mandates. The risk of exposure to losses in the short term is continually managed by maximising diversification to various markets and strategies at the least relative cost to the investor. This portfolio is managed in accordance with the investment limitations set out in Regulation 28 of the Pension Funds Act.




1Global equities 10.0% MSCI All Countries World Index Global bonds 5.0% Citigroup World Government Bond IndexKey:1. A total allocation of 45% to growth asset classes.

This investment portfolio is aimed at members of a retirement fund who are nearing retirement. These members would have a medium-term investment horizon and should be invested in less growth and more defensive asset classes. This is achieved by the portfolio being benchmarked against a 45% benchmark allocation to local equities and property as well as global equities to achieve some growth. The remaining 55% is benchmarked against investments that should preserve the purchasing power of the capital accumulated. The portfolio was created with a specific focus on reducing the overall policy fee and total expense ratio, by using predominantly passive and enhanced passive investment strategies, compared to other risk-profiled portfolios.


Risk classification description The portfolio may experience a low degree of volatility in the short term due to the



investments





Term

Risk

Very short

Very low

Very long

Very high

Medium

Medium



Investment strategy

Investment portfolio mandateThe long-term return objective of this portfolio is inflation plus 3% a year over three-year rolling periods. The aim is to achieve the objective with a high degree of certainty, which is done by using indexation and enhanced-index strategies in the investment mandates. The risk of exposure to losses in the short term is continually managed by maximising diversification to various markets and strategies at the least relative cost to the investor. This portfolio is managed in accordance with the investment limitations set out in Regulation 28 of the Pension Funds Act.





This investment portfolio is aimed at members of a retirement fund who are close to retirement. These members would have a short- to medium-term investment horizon and should be invested in predominantly defensive asset classes. This is achieved by the portfolio being benchmarked against a 67.5% allocation to investments that should preserve the purchasing power of the capital accumulated. The portfolio was created with a specific focus on reducing the overall policy fee and total expense ratio, by using predominantly passive and enhanced passive investment strategies, compared to other risk-profiled portfolios.


Risk classification description The portfolio may experience a low degree of volatility in the short term due to the



investments




Published: November 2017Outcome-based solutions for businesses

Momentum MoM Target Factor 3 Portfolio

Term

Risk

Very short

Very low

Very long

Very high

Medium

Medium

The company is an authorised financial services provider registration number 2004/023064/07268 West Avenue Centurion 0157 PO Box 7400 Centurion 0046

Telephone +27 (0) 86 153 8732 or +27 (12) 671 8911 Facsimile +27 (0) 86 573 7384 or +27 (12) [email protected] www.momentuminv.co.za/MomentumOutcome-basedSolutions

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 19840. 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 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 Outcome-based Solutions (Pty) Ltd to manage the investments 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: www.jse.co.za.

Momentum Outcome-based Solutions

investments

Documents

Momentum MoM Target Factor Portfolio Range...The portfolio has a composite benchmark weighted to the following asset classes: Asset class Allocation Benchmark Local equities1 47.5%