Welcome to the extraordinary world of
momentum investing

Our world has been forever altered by the discoveries of extraordinary explorers. Their desire to learn, to refuse the allegedly impossible, and to create and innovate without rest, have led to uncountable geographic, scientific and social breakthroughs. For these men and women, there is no limit - every milestone achieved is only an opportunity to push further.

Emperor Asset Management (EAM) is in the business of extraordinary financial exploration.
EAM provides a unique range of asset management products including unit trusts, segregated portfolios and hedge funds. Each of our investment strategies leverages our unique, quantitative, momentum style approach, which has a proven 10-year track record of beating benchmark returns. Tailored risk and return, real-time access and aligned performance fee structures are some of the characteristics that set EAM apart.

The Emperor IP Momentum Equity Unit Trust
is one of the first pure momentum unit trusts in
South Africa

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.

Emperor IP Momentum Equity Fund
The Emperor 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.

Fee structure

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
STANDARD FEES
  • Management fee - 1.5% pa if we hit the benchmark
  • Performance fee - 20% of out performance over the benchmark
INSTRUMENTS
  • South African equities
  • Free cash

Our Performance: Based on simulated results

Did you know?

The top 10 performing funds in South Africa in 2013 consisted primarily of value- and growth-focused strategies. To take advantage of market movements, we recommend that you diversify your portfolios, crucially including a momentum component.

What extraordinary looks like:

When it comes to extraordinary, we've got the numbers to prove our performance. Our simulated results indicate 1847.0% returns vs. FTSE/JSE Top 40 returns of 311.8% (January 2002 - December 2013).

We've broken these extraordinary numbers down for you below:

Simulated returns are for illustrative purposes only. Actual returns and back-tested returns are not necessarily indicative of future performance.

Emperor IP Momentum Equity Unit Trust simulated results
(January 2002 - December 2013)

Most suitable to:

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 Emperor IP Momentum Equity Fund is ideally suited to investors who are:

  • seeking above market returns at less than 70% of the market risk;
  • 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.

Our range of investment options

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 portfolio

Investment method
Quantitative

Launch date
1 June 2014

Benchmark
A

Strategy
Multi

Long/Short
Long/Short

Risk level
Fixed

Exposure level
220% long/40% short

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
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

Emperor IP Momentum Equity Fund

Investment structure
Equity unit trust

Investment method
Quantitative

Launch date
1 September 2014

Benchmark
A, including income

Strategy
Single

Long/Short
Long only

Risk level
Fixed

Exposure level
80% - 100% long

Minimum initial deposit
R10 000 lumpsum/R1 000 monthly

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.

Emperor IP Global Momentum Equity Fund

Investment structure
Equity unit trust

Investment method
Quantitative

Launch date
Late 2015

Benchmark
S&P 500

Strategy
Single

Long/Short
Long only

Risk level
Fixed

Exposure level
100% long

Minimum initial deposit
R10 000 lumpsum/R1 000 monthly

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-commandite partnership

Investment method
Quantitative

Launch date
1 November 2014

Benchmark
50% A, 50% STEFI 12m

Strategy
Single

Long/Short
Long/short

Risk level
Fixed

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

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