new international personal share portfolio

Transcription

1 new international personal share portfolio Your opportunity to own a custom-built share portfolio of internationally listed securities wealth

2 Whilst the Johannesburg Stock Exchange is the largest stock exchange in Africa, offering some impressive opportunities to both local and international investors, it makes up less than 2% of the world s market capitalisation. This means that if you are only exposed to locally listed investments, you may effectively be missing out on 98% of the world s investment opportunities. Wealth knows no boundaries - reasons to invest internationally Intelligent diversification International investing presents an opportunity to diversify a portfolio by investing not only in local instruments or asset classes, but across countries, regions, industry sectors and currencies. This may help reduce the risk in an investment portfolio. Adding international focus and access to an investment portfolio An investment with full liquidity and the potential for multicurrency assets and reporting may be especially useful if you seek the ability to access and administer your finances offshore, while working abroad or during retirement. International exposure International equity markets vastly increase your investable universe. An international portfolio may give you the potential for higher returns by allowing you to gain exposure to markets that are specific to geographical sectors, industries and themes, that many locally listed companies have little or no access to. Holistic investment management When you make sure that an investment portfolio is optimally allocated across global and local assets, it may assist in striking the right balance between risk and return. Page 2 of 10

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4 As part of your investment portfolio with Momentum Wealth International, you can now invest in a portfolio of listed global shares yet another exciting development from Momentum Wealth International. Choose to invest in leading international brands you know and trust. The International Personal Share Portfolio gives you access to shares on the world s major stock exchanges, all through one platform. Five unique benefits of the International Personal Share Portfolio 1 Build You can build a custom-made portfolio of listed international shares and exchange traded funds (ETFs), structured around your risk appetite and unique investment needs. Access You can access major international stock markets to gain international exposure to a wide variety of equity investments including blue-chip shares. 2 Enjoy You enjoy holistic investment management with the ability to invest in a focused and flexible share portfolio alongside an existing collective investment scheme portfolio. 3 Participate You have greater investor participation than a collective investment scheme portfolio alone (the ability to decide in which shares specifically your money is invested), giving you greater control over the underlying assets selected. 4 5 Consolidate You can add a share portfolio to your existing investment contract to benefit from fee aggregation and access to consolidated daily reporting. Page 4 of 10

5 Through our international platform you will be able to access many valuable benefits and administration capabilities. Reasons to choose momentum wealth international as your offshore investment partner Investment component flexibility you have the ability to invest, not only in shares, but in any investment component available on the Momentum Wealth International platform within a single investment portfolio. Various currency reporting arrangements including US dollar, sterling, euro, Japanese yen, Hong Kong dollar, Australian dollar, Swiss franc and South African rand. Wide range of funds a wide range of funds and listed securities, denominated in a range of foreign currencies, are available to you. Fee aggregation all the investment components included in your overall investment portfolio are combined so that the annual fee charged by Momentum Wealth International in respect of all investment components is deducted from your portfolio as one amount. Consolidated valuation one statement for your entire portfolio, despite being invested in different markets or countries, which contains detailed information that may assist you with your tax reporting. More about Momentum Wealth International Momentum Wealth International was established in 1999 to specifically cater for the needs of South African investors who want to diversify their portfolios internationally. Over the years we have grown from offering a pure investment administration platform to providing access to life wrappers designed to enhance tax efficiency and support effective estate planning. The investment options are vast and include some of the world s leading fund managers, as well as boutique investment firms. This is all packaged in a simple, cost-effective and transparent range of internationally domiciled investments and services. This range has now been enhanced with the introduction of the International Personal Share Portfolio available through: International Investment Option (IIO) International Endowment Option (IEO) Page 5 of 10

6 Who will help you take care of your international share portfolio? We have sourced the international stock-broking services of the highly regarded wealth manager, Credo Capital plc. Established in 1998, this independently owned private wealth management group has assets under administration in excess of 1.3 billion. Credo provide financial services to private and institutional clients and have grown into a multinational business with offices in the UK, Switzerland, South Africa, Bermuda and the British Virgin Islands. They also have a presence in New Zealand, Australia and Luxembourg. Choosing your level of participation Both Credo and Momentum Wealth International appreciate the fact that you as the investor have unique needs and preferences. Of all the parties involved, your financial adviser has the most intimate understanding of your unique investment needs. Credo s extensive experience and robust capabilities allow us to give you and your financial adviser the ability to choose your preferred level of participation in the investment process: Execution only If you or your financial adviser prefer to actively participate in the selection and management of the portfolio, an execution only arrangement will allow you to do this. This means you or your financial adviser (on your behalf provided the necessary licenses are in place) can have a say over all buy and sell decisions by giving Credo instructions on the assets underlying your share portfolio. Discretionary mandate By appointing Credo as a portfolio manager with a discretionary mandate it will relieve you of the burden of making and carrying out buy and sell decisions. Advisory mandate A bespoke advisory mandate will see you participating in and discussing buy and sell decisions affecting your portfolio with Credo before any trades are executed. Page 6 of 10

7 Taxation Your tax liability will depend on your personal circumstances and where you reside for tax purposes. You will receive detailed reporting from us and Credo which will assist you with the completion of your tax return. However, we recommend independent tax advice to understand the tax implications of investing in the International Personal Share Portfolio with Momentum Wealth International. The importance of financial advice We provide investments and services to help your financial adviser set out and plan a financial strategy that is uniquely appropriate to your circumstances and financial planning needs. It is important that you understand that investing in shares forms part of a long-term investment strategy. This means that time spent in the market is more important than timing the market. Web access to your account anytime, anywhere You will have full access to Credo s secure website and/or mobile application. This will enable you to view asset and currency allocations, portfolios, trade details, cash flows and much more. Investment minimum Execution only Advisory mandate Discretionary mandate Contact your licensed financial adviser if you have any questions. Let us help you take your investment places. Page 7 of 10

8 Introducing the discretionary share portfolio range In partnership with Credo, Momentum Wealth International provides you with a high conviction approach to investing directly in international shares. Our international share portfolio offering consists of a number of different investment choices that can be invested in as stand-alone portfolios or combinations that are tailored to meet your individual needs and investment objectives. Discretionary portfolio investment choices Dividend Growth Portfolio Best Ideas Portfolio Special Opportunities Portfolio - + Risk New 1 Dividend Growth Portfolio Invests in a diversified basket of global equities with the intent to provide investors with a sustainable and growing income stream through dividends and share buybacks. This portfolio focuses on companies that pay attractive dividend yields, with an ability to sustain and more importantly to grow these over the long term. The portfolio has a bias towards developed market, large capitalisation stocks. The portfolio aims to generate a total return in excess of the MSCI World. US Dollar 50% Swiss Franc 10% Euro 10% Sterling 40% Consumer discretionary Consumer staples Financials Industrials Energy Healthcare Technology Utilities 5% 16% 5% 16% 5% 16% 16% 21% Investment process Credo conducts a quantitative screening of the entire equity universe to identify companies that pay attractive dividend yields, with the ability to sustain and grow these over the long term. Criteria include strong dividend coverage ratios based on both net income and free cash flow, low debt to EBITDA ratios, a history of dividend growth and the potential to increase dividends into the future, be it via growth in earnings or a higher pay-out ratio. Page 8 of 10

9 2 Best Ideas Portfolio This portfolio invests in a diversified basket of global equities which the portfolio manager believes to be wellpositioned to outperform the wider equity market over the longer term. The portfolio has a bias towards developed markets, large capitalisation stocks. Credo s aim in managing this portfolio is to generate sustainable excess returns versus global market indices through proprietary research and stock selection. US Dollar 50% Swiss Franc 10% Sterling 40% Consumer discretionary Consumer staples Financials Industrials Energy Healthcare Technology Materials 10% 20% 5% 5% 10% 15% 15% 20% Investment process The portfolio focuses on stocks with a market capitalisation in excess of $5 billion and includes all constituent members of major global indices. Even though the investment process is predominantly bottomup in nature, the portfolio aims to maintain a diversified exposure across most major global industries in order to avoid concentration in any specific theme. The end result is a diversified portfolio of up to 20 high conviction stocks across major currencies, geographies and sectors. 3 New Special Opportunities Portfolio The recently launched Special Opportunities Portfolio is a concentrated, high conviction portfolio of between 7 15 individual stocks. The portfolio is unconstrained by market capitalisation, and will invest in equities that have sufficient liquidity. The objective of this portfolio is to take advantage of market mispricing. A catalyst for this mispricing can include a company restructuring, trading update or profit warning, IPO or private placing, take-over, or a technical anomaly. The portfolio is bottom up in nature and as it is an opportunistic portfolio, it will be currency and market agnostic. The portfolio manager anticipates a higher level of turnover of stocks in the portfolio and higher volatility relative to the other portfolios in the discretionary range, but commensurate with a sufficiently expected higher level of return. Page 9 of 10

10 MMI Group Limited 268 West Avenue Centurion 0157 PO Box 7400 Centurion 0046 South Africa Tel +27 (0) Fax +27 (0) Share Call Reg. No. 1904/002186/06 Momentum, a division of MMI Group Limited, an authorised financial services and credit provider Momentum Wealth (Pty) Ltd 268 West Avenue Centurion 0157 PO Box 7400 Centurion 0046 South Africa Tel +27 (0) Fax +27 (0) Share Call wealthservice@momentum.co.za Reg. No. 1995/008800/07 Momentum Wealth is an authorised financial services provider (FSP 657) investments MWI IPSP Bro