The Momentum Growth Enhancer gives you unrivalled certainty while enhancing your growth potential

Steven Schultz, head of marketing, Momentum Investments and Savings.

Caution has been the norm when it came to investment approaches, but Momentum is challenging this convention with a new innovative product that provides a secure return on your investment whilst simultaneously ensuring unlimited upside potential. With the introduction of the Momentum Growth Enhancer, caution has been thrown to the wind. “This new innovative product offering is a game-changer,” states Steven Schultz, head of marketing, Momentum Investments and Savings, “in addition to your initial investment amount being protected against potential losses investors benefit from a minimum return of 25% before tax at maturity.”

How does it work?

• Your original investment amount is fully protected
• You will receive a secured return of 25%, irrespective of market performance
• In addition, we enhance all index returns above 25% by 500%. This means we multiply any returns above 25% by five, which gives you unlimited upside return potential. This means that should the index perform at 30%, the 5% above 25% is multiplied by 5, to give you a total return of 50% (before tax)
• This is a five-year investment term (at the end of five years, you will get a secured return of 25% (before tax) on your original investment amount, along with any enhanced market-linked returns)
• The minimum investment amount is R50 000.00

Your investment return is linked to a global multi-asset index. Your investment will be in South African rand, but will not be exposed to any currency risk. Momentum will allocate 100% of your investment amount to this investment so you do not see the impact of an adviser fees or any other recurring fees. The enhanced return of the Momentum Growth Enhancer is calculated based on the return of the BNP Paribas Multi-Asset Diversified Vol 8 EUR Global Index. This index is broadly diversified across the globe. It covers a wide range of risky assets, such as developed market equities, emerging market equities, real estate and commodities. It also includes historically defensive assets such as government bonds and gold. The index dynamically allocates between these assets throughout the investment term.

“We have compared the investment returns of the Momentum Growth Enhancer to another globally diversified index (MSCI World Index),” states Schultz, “and we found that the Momentum Growth Enhancer experienced superior returns 92.4% of the time compared to the MSCI World Index in rand terms over the 10-year period from 2005 to 2015.” The back-testing also shows that the Momentum Growth Enhancer has delivered on average 3.5 times more than a typical cash investment over the same period.

For more information on this ground-breaking investment product contact your financial adviser.

Please refer to the technical guide for a detailed breakdown on the Momentum Growth Enhancer.