Momentum Global Growth Allocator allows you to invest with the benefit of hindsight
06 February 2014
Andre Botma, Momentum Wealth
Momentum Wealth has launched a ground-breaking investment called the Global Growth Allocator that allows investors to invest with the benefit of hindsight. It is only decided what percentage is allocated to each of the selected international equity indices after the performance of each index has been determined at the end of the investment term. The investment boasts an investment return boost of as much as 20%. There is also no limit on the returns you can receive.
How does it work?
The Global Growth Allocator gives exposure to four leading international indices:
• United States of America (S&P 500 Index)
• Europe (Eurostoxx 50 Index)
• Asia (Hang Seng Index)
• Africa (BNP Paribas Africa Equities Funds (EUR) Excess Return Index)
At the end of the five year investment the indices are sorted from best to worst performing. 40% of your investment amount is allocated to the best performing index, 30% to the second best performing, 20% to the 3rd best performing and 10% to the worst performing index.
Therefore, investors are sure to always have the biggest percentage of their investment exposed to best performing index and the lowest percentage to the worst performing index.
Andre Botma, senior product developer at Momentum Wealth says, "The Global Growth Allocator is a unique new proposition. It provides investors with the benefit of hindsight, which is the best investment strategy. It further provides unlimited return potential. Any positive returns are boosted with as much as 20% at maturity. For example, if the international equity markets included in this investment has a weighted 50% return over five years (based on the hindsight allocation methodology), this will be boosted to a total return of 60% at maturity.
In addition to the benefit of being exposed to the best performing selected international equity markets, you also have the benefit that investment amount will be protected in Rands if markets perform negatively. Thus giving you complete peace of mind throughout your investment term.
"The performance of the solution has been tested,” says Botma, "we compared how the Momentum Global Growth Allocator would have performed against an equally weighted basket of the same indices without the benefit of hindsight or the booster. We also compared it against actively managed global equity funds as represented by the average peer group performance of the Morningstar Global Large-Cap Blend Equity category. In both instances, the Momentum Global Allocator consistently outperformed 100% of the time.”
For more information on this ground-breaking investment product contact your financial adviser.
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