Multi-Manager Portfolios
Momentum Multi-Manager Shari'ah Portfolio
February 2020
Investment strategy Investment portfolio mandate
This investment portfolio has been specifically constructed in accordance with Shari’ah, the sacred law of the religion of Islam, as well as the regulatory and investment-return requirements of a retirement-fund investor.The Shari'ah principles have been taken into account.
The long-term return objective of this portfolio is inflation plus 5% a year over five-year rolling periods. The underlying investments of this portfolio comply with Islamic Law. Each component of this portfolio has an appointed Shari’ah board to oversee the investments of this portfolio.
Benchmark allocation
Asset Class Allocation BenchmarkLocal equities 60.00% FTSE/JSE Shariah All-Share IndexLocal cash 40.00% Short-term Fixed Interest Composite Index less 1%
Investment returns
One Month
Three Months
OneYear
Three Years
Five Years
Since Inception
Portfolio -4.89% -4.69% -0.04% 4.58% 4.63% 7.24%Benchmark -6.68% -5.75% -1.46% 4.31% 2.50% 8.09%CPI + 5.0% p.a 9.49% 9.29% 10.13% 10.14%
Risk analysis
(Calculation based on five-year period) Portfolio Benchmark Volatility 6.4% 9.8%Maximum drawdown -7.2% -16.2%Worst month -4.9% -6.7%Best month 4.0% 5.3%
Portfolio Benchmark
Asset allocation
The asset management fees exclude performance fees where applicable, as well as investment-management fees recovered by the underlying investment managers within the portfolio.After careful consideration, Momentum Outcome-based Solutions decided to adopt the FTSE/JSE Shariah All Share Index as the benchmark for the equity component of this portfolio from 1 April 2013. The company feels this is more appropriate, given the nature of the portfolio as well as the investable opportunities available to its equity managers.
Comments
Investment portfolio informationInception DateInvestment Horizon
Risk Profile
April 2009Long term
Asset Management Fee 1.50% p.a.
One Year WeightingLocal cash managers 5.72%Absa Islamic Bank 26.6%Standard Bank 8.2%Short-term Fixed Interest Composite Index less 1% a year
6.26%
Equity managers -3.01%Element -0.96% 19.8%Kagiso -3.80% 45.4%FTSE/JSE Shariah All Share Index -6.87%Total 100%
Investment manager allocation and returns