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Momentum investing involves finding stocks that are the strongest, and the most likely to trade higher. In a bear market, that means buying the ones that dropped the least. When they start to lose momentum, you get out of the position. Where value investors buy low and sell high, momentum investors buy high and sell higher.
IP Momentum Equity Fund
The IP Momentum Equity Fund follows a quantitative momentum strategy, investing in the top 180 most liquid shares of the JSE, measured in terms of average weekly trading volumes. The strategy is designed to provide the maximum returns obtainable from a pure equities investment at the lowest risk possible. A minimum exposure of 80% to South African equities will be maintained at all times, and a maximum of around 95%.
Incorporating momentum stocks into your investments diversifies your portfolio and provides you with access to the fastest- growing capital.
If we don’t outperform,
you don’t pay
Our fee structure works in your favour: you only pay us to perform. Our management fee is 1.5%. However, should we not outperform the market, no management or performance fee will be charged, aligning our incentive to our objective.
Our annual management fee is calculated daily by comparing our total performance over a rolling 24-month period, to that of the benchmark (adjusted for expenses and cash flow).
KEY DIFFERENTIATORS
- Quantitative momentum - based investment style
- Management and performance fees at risk to performance
INSTRUMENTS
- South African equities
- Free cash
STANDARD FEES
- Management fee - 1.5% pa if we hit the benchmark
- Performance fee - 20% of out performance over the benchmark
Fund
Highlights
- Best Equity Unit Trust for the 1st Quarter of 2015 (Morningstar, 2015).
- The Fund finished in the TOP 10 of the in the Equity Unit Trust Spaces (within 1st year of launch. To put this into perspective, there are over 1000 Unit Trusts in SA (Morningstar, 2015).
- Also available as TFSA
This fund is suitable for investors who are looking for outperformance relative to the FTSE/JSE Top 40 Total Return Index and want long-term capital growth. The fund offers strategy diversification from traditional investment styles.
The IP Momentum Equity Fund is ideally suited to investors who are:
- striving to grow their financial assets at a steady pace over the long term;
seeking style diversification; - have an investment horizon of three years or longer; and
are comfortable with pure equity investments.
Robert Falcon Scott
Investment structure
Segregated portfolio
Investment method
Quantitative
Launch date
1 October 2004
Benchmark
JSE/FTSE Top 40 (A)
Strategy
Multi
Long/Short
Long bias
Risk level
Personalised
Exposure level
120% - 200% long
Minimum initial deposit
R10 000
Management fee
1.2%
Performance fee
20% above benchmark
Fee differentiator*
B
Investible universe
JSE Top 140 (liquidity)
Instruments traded
CFDs
Options
Futures
Strategy component
Momentum
Value
Growth
Blue chips
Market timing
Downside protection
MOST SUITABLE TO
Investors seeking maximum equity returns at the same or moderately more risk than the market.
Investors who have an investment horizon of four years or more and are comfortable with market fluctuations.
Sir Edmund Hillary
Investment structure Segregated
Investment method Quantitative
Launch date 1 June 2014
Benchmark A
Strategy Multi
Long/
Risk level Aggressive
Exposure level 120% - 200% long
Minimum initial deposit R250 000
Management fee 1.2%
Performance fee 20% above benchmark
Fee differentiator* B
Investible universe JSE Top 140 (liquidity)
Instruments traded CFDs
Strategy component Momentum Value Growth Low volatility bias Market timing
MOST SUITABLE TO
Investors seeking maximum equity returns whilst taking substantially more risk than the market.
Investors who have an investment horizon of at least five years, limited to a maximum of 10% to 15% of their investment assets.
Sir Ernest Shackleton
Investment structure Segregated portfolio
Investment method Quantitative
Launch date Early 2015
Benchmark A
Strategy Single
Long/Short Long only
Risk level Personalised
Exposure level 120% - 200% long
Minimum initial deposit R10 000
Management fee 1.2%
Performance fee 20% above benchmark
Fee differentiator* B
Investible universe JSE Top 140 (liquidity)
Instruments traded CFDs Shares
Strategy component Momentum Low volatility bias Market timing Dynamic strategy shifting
MOST SUITABLE TO
Investors seeking above market returns at less than or similar (depending on exposure level) to the market risk. Investors seeking to grow their financial assets at a steady pace over the long term.
Investors who have an investment horizon of three years or longer. Investment may be suitable as a building block for retirement planning for those investors that are comfortable with equity market risk
IP Momentum Equity Fund
Investment structure Segregated
Investment method Quantitative
Launch date 1 September 2014
Benchmark A, including income
Strategy Single
Long/
Risk level Aggressive
Exposure level 80% - 100% long
Minimum initial deposit R10 000 lumpsum/R1 000
Management fee 1.5%
Performance fee 20% above benchmark
Fee differentiator* C
Investible universe JSE Top 180 (liquidity)
Instruments traded Shares
Strategy component Momentum Low volatility bias Market Timing (limited) Dynamic strategy shifting
MOST SUITABLE TO
Investors seeking above market returns at less than 70% of the market risk. Investors seeking to grow their financial assets at a steady pace over the long term
Investors who have an investment horizon of three years or longer. Investment may be suitable as a building block for retirement planning for those investors that are comfortable with pure equity investments. Especially suitable for investors and multimanager pension funds requiring style diversification to include exposure to a unique momentum style.
IP Global Momentum Equity Fund
Investment structure Equity Unit Trust
Investment method Quantitative
Launch date Late 2015
Benchmark S&P 500
Strategy Single
Long/
Risk level: Aggressive
Exposure level 100% long
Minimum initial deposit R10 000 lumpsum/R1 000
Management fee 1.5%
Performance fee 20% above benchmark
Fee differentiator* C
Investible universe S&P 500
Instruments traded Shares
Strategy component Momentum Low volatility bias Market Timing (limited) Dynamic strategy shifting
MOST SUITABLE TO
Investors seeking pure equity exposure to US equities. Investors looking to hedge against SA political and economic risk. Investors seeking to grow their financial assets at a steady pace over the long term.
Investors who have an investment horizon of four years or longer. Investment may be suitable as a building block for retirement planning for those investors that are comfortable with pure equity investments and requiring diversification in foreign equity markets. Especially suitable for investors and multimanager pension funds requiring style diversification to include exposure to a unique momentum style
Sir John Ross
Investment structure Hedge fund? En-
Investment method Quantitative
Launch date 1 November 2014
Benchmark 50% A, 50% STEFI 12m
Strategy Single
Long/
Risk level Aggressive
Exposure level 140% long/40% short
Minimum initial deposit R5 000 000
Management fee 1.2%
Performance fee 20% above benchmark
Fee differentiator* B
Investible universe JSE Top 180(liquidity)
Instruments traded CFDs Shares Options Futures
Strategy component Momentum Low volatility bias (long holdings) High volatility bias (short holdings) Market timing Downside protection
MOST SUITABLE TO
Sophisticated investors seeking maximum returns at significantly less risk than the market.
Investors who have a time horizon of at least two years and are comfortable with a product that offers robust protection against market fluctuations. Especially suited for institutional investors that seek exposure to a unique long-short equity momentum investment style wrapped in an encommandite partnership structure.
* Fee differentiator (B) Performance fees accrued remain at risk to future performance
Fee differentiator (C) Performance and management fees accrued remain at risk to future performance