Wealth Investment Series

Flexible Investment Option

Are you looking for maximum liquidity
and investment flexibility?
The Flexible Investment Option gives
you the flexibility to customise an
investment portfolio, build a long-term
investment strategy or invest for the
short or medium term.
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Momentum Administration Services is authorised as a financial service provider. FSP Registration no. 657
Product Features
Cash Management Solutions – you can choose from two
low risk funds for the cash portion of your investment and
for unique options in terms of managing the transactions
of your investment.
Flexible investing – a range of underlying investment op-
tions from Core Portfolio or FundShop make it easy to build
a diversified portfolio.
Investment liquidity – you have full access to your capital
at all times. No investment restrictions or product terms
apply.
Income requirements – you can access a regular income
from your investment.
Exemptions – as an individual investor, you can use your
annual interest income and Capital Gains Tax exemptions.
Different investor types – the Flexible Investment Option
is not only suited to individual investors but also to trusts,
companies and close corporations.
 Investment Options
Momentum Wealth provides simple, cost-effective investment solutions designed to cater for all market conditions, enabling
you to meet reasonable return expectations. We offer you a simplified route to choosing the funds and portfolios that best suit
your risk and return objectives. You can select local and international funds from our Managed Solutions, Core Portfolio and/or
FundShop ranges, which provide diversification across asset classes, funds, fund managers, risk profiles and currencies.

FLEXIBLE INVESTMENT OPTION

Managed Solutions Core Portfolio FundShop*

Removing the complexity of fund
choice – a simplified range of risk-
profiled fund solutions built with
specific return objectives and time
frames in mind.
Access to the four main pillars of
investing: equities, bonds, cash and
property - managed by leading local
and international fund managers.
One of the largest ranges of local
and international unit trust funds in
South Africa as well as niche fund
managers, specialist funds,
mandates and investment assets.

International Growth Solutions Cash Management Solutions Local unit trust funds
Local Core Portfolio International unit trust funds
International Core Portfolio Money Market Funds
Fund of Funds
Direct Shares
Exchange Traded Funds
Essential Portfolio
Capital Guarantee
Term Certain Annuity

Please refer to our other literature for detailed information on the above fund choices and applicable fees.

Flexible Investment Option

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* Some of the investment components in FundShop may be restricted to certain financial advisers or investors due to license requirements or Momentum’s product rules.
Introducing Cash Management Solutions Income Management

To help you structure your investment choices and to
satisfy the cash requirement of your investment, you can
choose from two low risk funds in Cash Management
Solutions.
The RMB Money Market Fund is a traditional, AAA-rated
money market fund and is suited to ultra conservative
investors due to the stable, low risk nature of the fund. The
fund is ideally suited to the transaction-related activity tak-
ing place on your investment and can specifically be used
in order to:
You can choose to receive income from all underlying
funds in your portfolio or you can specify one or more
funds from which income should be paid proportionately.
If you activate the top up functionality, Momentum Wealth
monitors your chosen income fund(s) on a monthly basis. If
there is insufficient capital to meet your income require-
ments for four months, units will be cancelled propor-
tionately from your underlying unit trust funds to cover
approximately 12 months’ income.

• establish an account from which all ongoing

administration and advice fees are paid.
• create an account from which your income can be paid.
• set up an account that may be used to phase an
investment into a particular investment strategy over
time.
• add ‘top-up’ functionality in order to cover the ongoing
fees associated with your investment or to top up your
income automatically.

The Cash Management Fund (CMF) is a unit trust fund

managed by RMB Asset Management that aims to provide
a high yielding, cash-type alternative to local money
market funds or accounts. It targets top quartile money
market returns over a rolling 12-month period. This top
quartile return target also serves as the benchmark against
which the fund will be measured. The fund is registered
as a varied specialist fund in the respective ACI category
(Fixed Interest: Varied Specialist Funds).

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Tax and Estate Planning
Investment returns are subject to taxation after taking into
account your annual interest and Capital Gains Tax exemp-
tion. Under current legislation, dividends from local unit
trust funds are not taxed in South Africa.
For estate planning purposes, ownership of the Flexible
Investment Option can be passed directly to your beneficia-
ries on instruction of the executer. Provided your estate is
sufficiently liquid to cover all other obligations.
Statements and Fund Switching
It is important for you to regularly monitor the perfor-
mance of your investment and chosen underlying funds.
Together with your financial adviser you need to ensure
that the overall asset composition of your portfolio is in
line with your original investment objectives and identified
risk profile.
Momentum Wealth makes it easy for you to monitor your
investment by offering online, internet-enabled investment
statements and functionality. This allows you to view your
asset allocation, the performance of your portfolio and
gives you a complete breakdown of dividends declared,
interest accrued, withdrawals or additional investments
made and any fees or income paid from the investment.
When rebalancing your portfolio or switching between
funds, Momentum Wealth offers internet switching, which
makes rebalancing a simple, timeous and cost-effective
process.
Financial advisers with either a discretionary mandate or
signed instruction from an investor can execute a switch
instruction online. A full audit trail is retained for security
of each transaction. Online switching is cost-effective as
no switch fees are charged for online transactions.
Flexible Investment Option
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Summary of features
Term There is no term applicable to this product. Investors have access to their capital
whenever required, subject to any stipulations of the dealing dates of their chosen
funds as well as any underlying guarantees chosen.

Minimum age at inception There is no minimum inception age for this product.

Maximum age at inception There is no maximum inception age for this product.

Product minimums R50 000 lump sum for local investments.

R100 000 lump sum for international investments*.
R1 000 for regular investments (monthly).

Fund minimums Local R100 per fund net of initial fees.

International R20 000 per fund net of initial fees*.

Contributions Investors can add money to their investment at any time through regular or
lump sum investments.

Withdrawals Investors can withdraw their capital at any time subject, to the information contained
above in “Term”. A minimum R10 000 investment must remain in the contract.

Income Investors can take an income in the form of regular withdrawals and can choose the
fund(s) that the income should be paid proportionately from. In addition, investors
can opt to have their chosen fund(s) automatically monitored and topped up to ensure
that the balance is sufficient to cover their income requirements.

Loan Investors cannot take a loan against the Flexible Investment Option. As a liquid
investment product, investors have full access to their capital when required.

International investing Individual investors can use their individual offshore allowance to invest in
international unit trusts and other funds. Investors can also invest in
ZAR-denominated international funds.

Cession Investors can cede their investment as collateral security. Once ceded, any future
transactions will require the approval of the cession holder.

Estate planning On death, the investment will be dealt with in terms of the investor’s Will and/or in
accordance with the instructions of the executor of the estate.

Taxation Under current legislation, local dividends received from underlying unit trust funds
are exempt from tax. Interest distributions are subject to tax at an investor’s
marginal tax rate. A Capital Gains Tax event arises when units are sold. Individual
investors may use their annual interest income and Capital Gains Tax exemption to
offset tax on their investment. Momentum Wealth provides investors with an IT3B
certificate that indicates the interest and dividend income earned as well as an IT3C
certificate showing any capital gains made on the investment.

Cancellation Investors can withdraw their investment by cancelling all the units in their portfolio.

Phasing-in Investors can phase-in their investment over a period of 2 weeks to 24 months.

Type of investors allowed for this product Individuals

Close corporations
Companies
Trusts

* Subject to international fund minimums

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About us
Momentum Administration Services (Pty) Ltd is registered
as an administrative financial services provider in terms
of the Financial Advisory and Intermediary Services Act of
2002. The products administered by Momentum Adminis-
tration Services (Pty) Ltd are marketed under Momentum
Wealth.

Momentum Wealth specialises in the administration of

insurance, pension and investment products and acts in an
execution only capacity. Momentum Wealth does not pro-
vide financial advice and may not, in terms of legislation,
act as a financial adviser.

Momentum Wealth is committed to providing you with su-

perior investment products and excellent service. We trust
that the information contained in this brochure assists you
in making informed investment and retirement choices to-
gether with your financial adviser. The investment industry
is fairly dynamic and, as such, there will be changes and
updates to the information supplied to you in this brochure.

Please feel free to contact us:

We are situated at
268 West Avenue
Centurion
0157

Write to us
PO Box 7283
Pretoria
0001

Call us
Client Liaison (012) 675 3000
Share Call Number 0860 546 533

E-mail us
wealthservice@momentum.co.za

Visit us on the Web

www.momentum.co.za

Flexible Investment Option

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 Momentum 268 West Avenue Centurion 0157 PO Box 7400 Centurion 0046 South Africa
Tel +27 (0) 12 671 8911 Fax +27 (0) 12 671 8209/8210
client@momentum.co.za www.momentum.co.za

2008/0606/FIO