The Momentum Value Equity Fund's objective is to achieve high long term capital growth by applying a value based investment strategy to shares listed on the JSE though a smart beta investment methodology. Smart beta refers to an investment style where the manager captures market factors designed to take advantage of perceived systematic biases or inefficiencies in the market.
The Momentum Value Equity Fund is an equity only fund that uses a systematic investment process. The portfolio deliberately targets focused exposure to shares that trade for less than their intrinsic value. Factors considered amongst others are price to book ratio, dividend yield and earnings yield. The universe of listed shares is screened on these value parameters. A portfolio with strong value factors is constructed on this basis. The portfolio aims to capture the equity market returns enhanced by the value risk premium. The exposure to qualifying shares that have strong value qualities will be optimized to have the maximum probability of achieving the desired outcome over a full market cycle.
The portfolio's investment universe consists of South African equity and property securities, assets in liquid form and participatory interests and other forms of participation in local collective investment scheme portfolios. To provide high long term real returns the portfolio's equity exposure will be a minimum of 90% the portfolio's net asset value. The portfolio will have no foreign exposure.
The portfolio may from time to time invest in listed and unlisted financial instruments, 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.