Monthly Feedback 31 May 2017 Ampersand Asset Management€¦ · Monthly Feedback – 31 May 2017 Ampersand Asset Management Monthly Minimum Disclosure Documents Ampersand Momentum

Monthly Feedback – 31 May 2017

Ampersand Asset Management

Monthly Minimum Disclosure Documents

Ampersand Momentum CPI Plus 2 Fund of Funds



Ampersand Momentum Equity Fund

Ampersand Momentum Flexible Property Income Fund

http://www.momentuminv.co.za/

Ampersand Momentum CPI Plus 2 Fund of Funds Momentum Collective Investment Scheme (CIS) portfolio

Class A | Minimum Disclosure Document (MDD) as at 31 May 2017 Assets managed by: Ampersand Asset Management

Portfolio profile

The fund is a cautious multi-managed portfolio that focuses on providing investors with long term real returns and a high degree of capital stability over the short term. The fund will aim to capture a degree of positive market movements while providing significant protection in difficult periods. The fund is part of the SA Multi-Asset Low Equity ASISA category and is limited to holding between 20% and 30% equity assets.

Investment strategy

The fund will invest in a diversified pool of assets with various different investment strategies and investment managers being utilised to achieve its objectives. The fund can include both active and passive strategies to achieve the set objectives. The fund’s primary objective is to provide outperformance of SA CPI plus 2% p.a. over a rolling 3 year basis with a secondary objective where the fund aims to provide capital protection over all rolling 12 month intervals.

Portfolio performance

5 year cumulative performance graph

Annualised performance

1 year 3 years 5 years 7 years Launch

Fund 1.01% 7.04% 8.97% 9.41% 8.67%

Benchmark 7.36% 7.36% 7.61% 7.50% 7.84%

Sector 2.95% 6.56% 8.96% 9.07% 8.30%

Rank 118/139 37/96 47/82 27/65 20/53

High[1] 9.16% 12.70% 17.16% 17.16% 17.16%

Low[1] 1.01% 1.01% 1.01% 1.01% 1.01%

Cash 7.62% 6.87% 6.26% 6.18% 6.96%

Inflation 5.35% 5.34% 5.62% 5.50% 5.75%

[1] High/Low – highest/lowest 1 year return of the portfolio/class of portfolio during the period detailed.

Benchmark – With effect from 30/09/2016, the source and method of calculation for all CPI-plus benchmarks were changed. Previously, all figures were sourced from Morningstar using its methodology. From 30/09/2016, all figures are sourced from the Momentum Performance Team using its methodology. Details of all methodologies are available on request from the Manager.

Portfolio information

Portfolio inception 12 May 2008

Portfolio size R 1.61 billion

Launch date 12 May 2008

Launch price 100.00 (cpu)

Latest price (31/05/2017) 160.13 (cpu)

Benchmark CPI + 2% (after fees)

ASISA sector SA - Multi Asset - Low Equity

Codes

JSE VPCFC

ISIN ZAE000118964

Minimum investment

Lump sum R 10,000 Monthly R 1,000

Portfolio managers

Tom Barlow, BCom (Economics), CFA

Portfolio charges and ratios

Initial management fee 0.00% (incl. VAT)

Initial advisory fee 0% - 3.42% (incl. VAT)

Annual management fee 0.798% p.a. (incl. VAT)

Annual advisory fee 0% - 1.14% (incl. VAT)

Financial year end TER: 1.76% (incl. VAT)

The disclosed Financial year end TER (total expense ratio) is shown as an annual percentage based on data for the 1 year period to 30 June 2016.

Cost ratios (incl. VAT) as at 31 March 2017:

TER (%) TC (%) TIC (%)

1.72% 0.05% 1.76%

TER (%): Total Expense Ratio, TC (%): Transactions Costs Ratio, TIC (%): Total Investment Charges (TER (%) + TC (%)) Please see Disclosures section for further information on cost ratios

Income distribution (cpu)

Dividend Interest Total

Nov'15 0.469 1.077 1.552

Dec'15 0.000 0.000 0.000

Jun'16 0.970 2.190 3.160

Dec'16 0.439 1.082 1.521

Jun'16 - May'17 1.409 3.272 4.681

Distribution takes place Semi-annually : June, December

Momentum collective investments | Ampersand Momentum CPI Plus 2 Fund of Funds | Class A | MDD as at May 2017 | Published: 16 June 2017 Page 2 of 16

Risk/reward profile and 3 year statistics

Standard deviation1) 4.46

Sharpe ratio2) 0.06

Information ratio3) -0.30

Largest negative monthly return -2.83

Number of positive months 27 / 36

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.

1)Standard deviation – measures the volatility of fund returns

2)Sharpe ratio – fund return minus cash return (STeFI composite), divided by the Standard deviation (of fund returns)

3)Information ratio – return per unit of risk against the benchmark

Holdings

Asset type allocation (look through) (%)

Portfolio holdings (%)

VPFP International Cautious IC A 23.96

Saffron MET Active Bond B 19.02

Ampersand Momentum Flex Property Inc B 17.68

Ampersand Momentum Equity B1 15.71

Saffron MET Opportunity Inc C1 11.15

Element Specialist lncome C 6.30

Saffron African Yield Opp B 2.28

Coronation Strategic Income D 1.92

Saffron MET Top 20 B 0.82

SA Cash/Money Market 1.16

Portfolio objective/investment policy

The Ampersand Momentum CPI Plus 2 Fund of Funds portfolio is an asset allocation fund of funds portfolio. 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. 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 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. The trustees shall ensure that the investment policy is adhered to, provided that nothing shall preclude the manager from varying the ratios of participatory interests, to maximise capital growth and investment potential in a changing economic environment or market conditions or to meet the requirements, if applicable, of any exchange formally recognised in terms of legislation and from retaining cash or placing cash on deposit in terms of the deed and supplemental deed; provided that the manager shall ensure that the aggregate value of the assets comprising the portfolio shall consist of participatory interests and assets in liquid form of the aggregate value required by the Act. For the purposes of this portfolio, the manager shall reserve the right to close the portfolio to new investors. This will be done in order to be able to manage the portfolio in accordance with its mandate. The manager shall determine the critical size from time to time.

Portfolio limits and constraints

The portfolio may invest in multi-asset class portfolios and is not limited to certain asset classes.

Max 25% in offshore investments plus 5% in Africa.

The portfolio will aim to achieve a minimum of 20% and a maximum of 30% in equity exposure.

The portfolio will be managed in accordance with prudential investment guidelines for retirement funds.

This is a third party portfolio.


Contact and other information

Scheme

Momentum Collective Investments Scheme

Custodian/Trustee

Standard Bank of South Africa Limited

Telephone: +27 (0)21 441 4100

Registration no.: 1962/000738/06

Management company

Momentum Collective Investments (RF) (Pty) Ltd 268 West Avenue, Centurion, 0157 PO Box 7400, Centurion, 0046

Facsimile: +27 (0)12 675 3889

Call centre: 0860 111 899

Email: [email protected]

Web: www.momentuminv.co.za


Third party manager

Ampersand Asset Management (Pty) Ltd 1 Tuscany Office Park, 6 Coombe Place, Rivonia, 2191, Sandton P.O. Box 926, Rivonia, 2128

An authorised financial services provider, FSP No: 33676

Telephone: +27 (0)11 803 6597

Facsimile: +27 (0)11 803 6106


Web: www.ampersandam.co.za


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, No 45 of 2002 (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, registration number 1962/000738/06, 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 authorised financial services provider (“FSP”) under the Financial Advisory and Intermediary Services Act No. 37 of 2002 (“FAIS”), FSP number: 33676, is the investment manager of this portfolio.

Ampersand Momentum CPI Plus 2 Fund of Funds is a co-named portfolio, operating under an agreement entered into between the Manager and Ampersand Asset Management (Pty) Ltd, registration number: 2007/006571/07, an authorised FSP under FAIS, FSP number: 33676. A co-named portfolio is a third party named portfolio bearing the name of both the Manager and the FSP, where the FSP undertakes financial services of a discretionary nature, as contemplated in FAIS, in relation to the assets of the portfolio. The Manager retains full legal responsibility for all third party named portfolios under the Momentum Collective Investments Scheme. This information is not advice, as defined in the Financial Advisory and Intermediary Services Act (No. 37 of 2002). Please note that there may be representatives of the FSP acting under supervision. Your financial adviser may be a related party to the FSP and/or the Manager of this portfolio. It is your financial adviser’s responsibility to disclose details of any conflicts of interests that may apply, as well as all fees that they receive, in relation to an investment in this portfolio.

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.

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 17 November 2015 to 31 March 2017. The Transaction Costs Ratio (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. Transaction costs are a necessary cost in administering the Financial Product and impacts Financial Product returns. The TC 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 17 November 2015 to 31 March 2017. The Total Investment Charges (TIC) is the sum of the TER and the TC and is shown as a percentage depicting the annual costs relating to the investment of the Financial Product. Cost ratios are 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.

All portfolio 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. All portfolio performance figures quoted (tables and charts where present) are as at 31/05/2017, based on 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. Cash figures, where present, are STeFI Composite Index returns. All figures quoted in ZAR. Source: Morningstar and/or Momentum.

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 to new investors 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 and in some national newspapers. 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 including, but not limited to, brochures, application forms and the annual report and any half yearly report can be obtained, free of charge, at www.momentuminv.co.za or on request from the Manager.

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.


mailto:[email protected]



http://www.ampersandam.co.za/



Portfolio profile

The fund is a moderate multi-managed portfolio that focuses on providing investors with long term real returns and a degree of capital stability over the short to medium term. The fund will aim to capture a degree of positive market movements while providing protection in difficult periods. The fund is part of the SA Multi-Asset Medium Equity ASISA category and is limited to holding between 40% and 50% equity assets.

Investment strategy






Fund -0.90% 5.87% 9.42% 9.59% 8.31%

Benchmark 9.36% 9.36% 9.61% 9.50% 9.84%

Sector 1.23% 5.79% 9.90% 9.86% 8.13%

Rank 71/81 33/60 27/43 25/39 20/36

High[1] 9.00% 16.29% 20.38% 20.38% 20.38%

Low[1] -0.91% -0.91% -0.91% -0.91% -2.14%

Cash 7.62% 6.87% 6.26% 6.18% 6.96%

Inflation 5.35% 5.34% 5.62% 5.50% 5.75%





Portfolio size R 1.47 billion



Latest price (31/05/2017) 163.18 (cpu)


ASISA sector SA - Multi Asset - Medium Equity

Codes

JSE VPCFF

ISIN ZAE000118956

Minimum investment


Portfolio managers










TER (%) TC (%) TIC (%)

1.80% 0.07% 1.87%




Nov'15 0.527 0.654 1.187

Dec'15 0.000 0.000 0.000

Jun'16 1.140 1.680 2.820

Dec'16 0.270 0.347 0.617

Jun'16 - May'17 1.410 2.027 3.437





Sharpe ratio2) -0.13




Specific risks





Holdings




VPFP International Growth IC A 26.70






STANLIB Extra Income ABIL RF 0.01



The Ampersand Momentum CPI Plus 4 Fund of Funds portfolio is an asset allocation fund of funds portfolio. 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. 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 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. The trustees shall ensure that the investment policy is adhered to, provided that nothing shall preclude the manager from varying the ratios of participatory interests, to maximise capital growth and investment potential in a changing economic environment or market conditions or to meet the requirements, if applicable, of any exchange formally recognised in terms of legislation and from retaining cash or placing cash on deposit in terms of the deed and supplemental deed; provided that the manager shall ensure that the aggregate value of the assets comprising the portfolio shall consist of participatory interests and assets in liquid form of the aggregate value required by the Act. For the purposes of this portfolio, the manager shall reserve the right to close the portfolio to new investors. This will be done in order to be able to manage the portfolio in accordance with its mandate. The manager shall determine the critical size from time to time.









Scheme


Custodian/Trustee


Telephone: +27 (0)21 441 4100


Management company


Facsimile: +27 (0)12 675 3889





Third party manager



Telephone: +27 (0)11 803 6597

Facsimile: +27 (0)11 803 6106




Disclosures
















Portfolio profile

The fund is an aggressive multi-managed portfolio that focuses on providing investors with long term real returns and a high degree of equity market correlation. The fund will aim to capture a high degree of positive market movements while providing some protection in difficult periods. The fund is part of the SA Multi-Asset High Equity ASISA category and is limited to holding between 60% and 75% equity assets.

Investment strategy






Fund -2.14% 4.46% 9.59% 9.86% 7.71%

Benchmark 11.36% 11.36% 11.62% 11.50% 11.84%

Sector 0.67% 6.03% 10.79% 10.83% 8.76%

Rank 145/171 92/111 62/84 44/59 37/49

High[1] 9.80% 20.66% 23.28% 23.28% 23.45%

Low[1] -2.14% -2.14% -2.14% -2.14% -10.37%

Cash 7.62% 6.87% 6.26% 6.18% 6.96%

Inflation 5.35% 5.34% 5.62% 5.50% 5.75%





Portfolio size R 373.28 million



Latest price (31/05/2017) 165.81 (cpu)


ASISA sector SA - Multi Asset - High Equity

Codes

JSE VPCFU

ISIN ZAE000118949

Minimum investment


Portfolio managers










TER (%) TC (%) TIC (%)

1.99% 0.08% 2.07%




Nov'15 0.492 0.266 0.761

Dec'15 0.000 0.000 0.000

Jun'16 1.190 0.570 1.760

Dec'16 0.093 0.086 0.179

Jun'16 - May'17 1.283 0.656 1.939









Specific risks





Holdings




VPFP International Growth IC A 26.33





Saffron MET Active Bond ABIL RF 0.12



The Ampersand Momentum CPI Plus 6 Fund of Funds portfolio is an asset allocation fund of funds portfolio. 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. 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 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. The Trustees shall ensure that the investment policy is adhered to, provided that nothing shall preclude the manager from varying the ratios of participatory interest, to maximise capital growth and investment potential in a changing economic environment or market conditions or to meet the requirements, if applicable, of any exchange formally recognised in terms of legislation and from retaining cash or placing cash on deposit in terms of the deed and supplemental deed; provided that the manager shall ensure that the aggregate value of the assets comprising the portfolio shall consist of participatory interests and assets in liquid form of the aggregate value required by the Act. For the purposes of this portfolio, the manager shall reserve the right to close the portfolio to new investors. This will be done in order to be able to manage the portfolio in accordance with its mandate. The manager shall determine the critical size from time to time.









Scheme


Custodian/Trustee


Telephone: +27 (0)21 441 4100


Management company


Facsimile: +27 (0)12 675 3889





Third party manager



Telephone: +27 (0)11 803 6597

Facsimile: +27 (0)11 803 6106




Disclosures














Ampersand Momentum Equity Fund Momentum Collective Investment Scheme (CIS) portfolio


Portfolio profile

The fund is a multi-managed focused SA Equity portfolio that aims to outperform the SA Equity Market over the long term. The fund will aim to capture a high degree of positive market movements while providing some protection in difficult periods. The fund is part of the SA General Equity ASISA category and is limited to holding between 80% and 100% in equity assets.

Investment strategy

The fund will invest in equity assets only with a preference of South African listed instruments. The fund will include various different investment strategies and investment managers to achieve its objectives. The fund can include both active and passive strategies to achieve the set objectives. The fund’s primary objective is to provide outperformance of the SA Equity Market as measured by the SWIX over a rolling 5 year periods while achieving this return at lower risk.


Since launch cumulative performance graph


1 year 3 years Launch

Fund -1.39% 0.75% 4.38%

Benchmark 2.95% 7.13% 11.77%

Sector 0.39% 4.07% 8.81%

Rank 113/162 114/129 99/108

High[1] 7.65% 21.66% 21.66%

Low[1] -4.23% -8.57% -8.57%

Cash 7.62% 6.87% 6.44%

Inflation 5.35% 5.34% 5.73%



Portfolio inception 2 April 2013


Launch date 2 April 2013


Latest price (31/05/2017) 115.70 (cpu)

Benchmark FTSE/JSE SWIX J403T

ASISA sector SA - Equity - General

Codes

JSE AMECA

ISIN ZAE000174827

Minimum investment


Portfolio managers







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.




TER (%) TC (%) TIC (%)

1.87% 0.14% 2.01%




Dec'15 0.510 0.220 0.730

Apr'16 0.450 0.270 0.720

Jun'16 0.080 0.220 0.300

Dec'16 0.832 0.165 0.998

Jun'16 - May'17 0.912 0.385 1.298


Momentum collective investments | Ampersand Momentum Equity Fund | Class A | MDD as at May 2017 | Published: 16 June 2017 Page 11 of 16







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.




Holdings

Asset type allocation (%)

Top holdings (%)


First Avenue SCI Equity B2 16.72

MET General Equity A 16.14

CAPPED TOP40 ADJ PART INDEX SWAP 7.61

CAPPED TOP40 ADJ PART INDEX SWAP 7.11

AngloGold Ashanti Limited 2.36

WWCAM3 0% 121216 2.28

Reinet Investments S.C.A 2.05

Old Mutual plc 1.89

Astrapak Limited 1.88


The Ampersand Momentum Equity Fund is an equity portfolio that seeks to sustain high long-term capital growth. 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 as the Act may allow from time to time, and which are consistent with the portfolio’s investment policy. Where the aforementioned schemes are operated in territories other than South Africa, participation in portfolios of these schemes 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 from time to time invest in 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. The manager may also include unlisted forward currency, interest rate and exchange rate swap transactions for efficient portfolio management purposes. Nothing 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 Supplemental Deed. The Trustee shall ensure that the investment policy is carried out. For the purposes of this portfolio, the manager shall reserve the right to close the portfolio to new investors. This will be done in order to be able to manage the portfolio in accordance with its mandate.


Maximum 25% in offshore investments plus max. 5% in Africa.

The portfolio‘s equity exposure will always exceed 80% of its net asset value.



Scheme


Custodian/Trustee


Telephone: +27 (0)21 441 4100


Management company


Facsimile: +27 (0)12 675 3889





Third party manager



Telephone: +27 (0)11 803 6597

Facsimile: +27 (0)11 803 6106




Disclosures


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 authorised financial services provider (“FSP”) under the Financial Advisory and Intermediary Services Act No. 37 of 2002 (“FAIS”), FSP number: 33676, is the investment manager of this portfolio.

Ampersand Momentum Equity Fund is a co-named portfolio, operating under an agreement entered into between the Manager and Ampersand Asset Management (Pty) Ltd, registration number: 2007/006571/07, an authorised FSP under FAIS, FSP number: 33676. A co-named portfolio is a third party named portfolio bearing the name of both the Manager and the FSP, where the FSP undertakes financial services of a discretionary nature, as contemplated in FAIS, in relation to the assets of the portfolio. The Manager retains full legal responsibility for all third party named portfolios under the Momentum Collective Investments Scheme. This information is not advice, as defined in the Financial Advisory and Intermediary Services Act (No. 37 of 2002). Please note that there may be representatives of the FSP acting under supervision. Your financial adviser may be a related party to the FSP and/or the Manager of this portfolio. It is your financial adviser’s responsibility to disclose details of any conflicts of interests that may apply, as well as all fees that they receive, in relation to an investment in this portfolio.

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 April 2014 to 31 March 2017. Included 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 Ratio (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. Transaction costs are a necessary cost in administering the Financial Product and impacts Financial Product returns. The TC 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 April 2014 to 31 March 2017. The Total Investment Charges (TIC) is the sum of the TER and the TC and is shown as a percentage depicting the annual costs relating to the investment of the Financial Product. Cost ratios are 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.









Ampersand Momentum Flexible Property Income Fund Momentum Collective Investment Scheme (CIS) portfolio


Portfolio profile

The fund is a multi-managed focused listed real estate portfolio that aims to outperform a combination of SA listed property and money market. The fund will aim to capture a high degree of positive market movements while providing protection in difficult periods. The fund is part of the SA Real Estate ASISA category and is limited to holding between 35% and 100% in listed real estate securities.

Investment strategy

The fund will invest in a diversified pool of assets with a bias to listed real estate securities. The fund could include both short dated and longer dated fixed interest exposures although the fund will be biased towards investing in assets that provide growing income yield. The fund will aim to achieve its objective by investing in various different investment strategies and investment managers being utilised to achieve its objectives. The fund can include both active and passive strategies to achieve the set objectives. The fund’s primary objective is to provide outperformance its benchmark over a rolling 3 year basis.


Since launch cumulative performance graph


1 year 3 years Launch

Fund 8.96% 13.44% 12.58%

Benchmark 5.08% 11.98% 10.46%

Sector 2.49% 13.89% 12.05%

Rank 2/38 19/30 9/27

High[1] 17.61% 39.32% 39.32%

Low[1] 0.80% -3.85% -3.85%

Cash 7.62% 6.87% 6.64%

Inflation 5.35% 5.34% 5.68%



Portfolio inception 1 November 2013


Launch date 1 November 2013


Latest price (31/05/2017) 131.40 (cpu)

Benchmark Composite (67% FTSE/JSE J253T, 33% STeFI Composite)

ASISA sector SA - Real Estate - General

Codes

JSE AFICA

ISIN ZAE000179362

Minimum investment


Portfolio managers










TER (%) TC (%) TIC (%)

2.03% 0.07% 2.10%




Jun'16 0.800 0.240 1.040

Sep'16 1.290 0.060 1.350

Dec'16 1.940 0.083 2.023

Mar'17 1.161 0.048 1.209

Jun'16 - May'17 5.191 0.431 5.622

Distribution takes place Quarterly : March, June, September, December

Momentum collective investments | Ampersand Momentum Flexible Property Income Fund | Class A | MDD as at May 2017 | Published: 16 June 2017 Page 14 of 16



Sharpe ratio2) 0.67



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.




Holdings

Asset type allocation (%)

Top holdings (%)

ABSA Property Equity D 19.98

Sesfikile BCI Property B 18.94

Nedgroup Inv Property A1 18.42

Fairvest Property Hldgs Ltd 2.85

Equites Property Fund Ltd 2.75

Arrowhead Properties Ltd A 2.60

Growthpoint Properties Ltd 2.60

Accelerate Property Fund Ltd 2.42

Delta Property Fund Ltd 2.41

Safari Investments RSA Ltd 2.37


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. The investable universe of the portfolio 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. The manager may only include forward currency agreements, interest rate and exchange rate swap transactions for efficient portfolio management purposes. The portfolio may also invest in participatory interests or any other form of participation in portfolios of collective investment schemes or other similar collective investment schemes as the Act may allow from time to time, and which are consistent with the portfolio’s investment policy. Where the aforementioned schemes are operated in territories other than South Africa, participation in portfolios of these schemes 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 Trustee shall ensure that the investment policy is adhered to, provided that nothing contained in the investment policy shall preclude the Manager from varying the ratio of fixed income securities in terms of changing economic factors or stock exchange conditions and from retaining cash in the portfolio and/or placing on deposit in terms of the Deed. For the purposes of this portfolio, the manager shall reserve the right to close the portfolio to new investors. This will be done in order to be able to manage the portfolio in accordance with its mandate.


Maximum exposure limits as per the ASISA fund classification structure.

Maximum 25% in offshore investments plus 5% in Africa.

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.



Scheme


Custodian/Trustee


Telephone: +27 (0)21 441 4100


Management company


Facsimile: +27 (0)12 675 3889





Third party manager



Telephone: +27 (0)11 803 6597

Facsimile: +27 (0)11 803 6106




Disclosures


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 authorised financial services provider (“FSP”) under the Financial Advisory and Intermediary Services Act No. 37 of 2002 (“FAIS”), FSP number: 33676, is the investment manager of this portfolio.

Ampersand Momentum Flexible Property Income Fund is a co-named portfolio, operating under an agreement entered into between the Manager and Ampersand Asset Management (Pty) Ltd, registration number: 2007/006571/07, an authorised FSP under FAIS, FSP number: 33676. A co-named portfolio is a third party named portfolio bearing the name of both the Manager and the FSP, where the FSP undertakes financial services of a discretionary nature, as contemplated in FAIS, in relation to the assets of the portfolio. The Manager retains full legal responsibility for all third party named portfolios under the Momentum Collective Investments Scheme. This information is not advice, as defined in the Financial Advisory and Intermediary Services Act (No. 37 of 2002). Please note that there may be representatives of the FSP acting under supervision. Your financial adviser may be a related party to the FSP and/or the Manager of this portfolio. It is your financial adviser’s responsibility to disclose details of any conflicts of interests that may apply, as well as all fees that they receive, in relation to an investment in this portfolio.

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 2015 to 31 March 2017. The Transaction Costs Ratio (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. Transaction costs are a necessary cost in administering the Financial Product and impacts Financial Product returns. The TC 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 2015 to 31 March 2017. The Total Investment Charges (TIC) is the sum of the TER and the TC and is shown as a percentage depicting the annual costs relating to the investment of the Financial Product. Cost ratios are 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.







