Wealth management

We aim to be the preferred wealth manager to individuals and businesses, throughout their lifetime, in order to maximise their financial wellness.

Philosophy

At Momentum Consult we pride ourselves on time-based risk management. We are able to carefully consider risk restraints and investment objectives, when combining assets; to create allocations that optimise class risk and return characteristics, over a specified time period.

The cornerstones of our wealth management philosophy are:

  • Time-based risk management.
  • Asset/liability modeling, to ensure that our cash flows are appropriately matched.
  • Diversified asset allocation, real returns and careful risk management.
  • Fund solutions which ensure the highest probability of achieving optimal results.

We believe in, and are committed to, delivering:

  • A client-centric business model that offers wealth management solutions, based on solid and sustainable house views.
  • Customised and holistic solutions based on trustworthy interactions that meet our clients needs and preferences.
  • Equitable, value-driven partnerships with clients, shareholders and business associates.
  • Innovative platforms that underpin our market leadership.
  • Wealth management solutions that meet our clients investment goals and risk appetites; by leveraging from our financial advisers skills and experience.

Framework for formulating client needs

Momentum Consult has adopted an outcomes-based investment (OBI) philosophy and portfolio construction process. This is a three-step process. Behind each step is a detailed process to ultimately construct a portfolio designed to deliver on the client’s objective with the highest probability of success.

Each step in the process adds significant value and researching and implementing the detail is critical in robust portfolios. Portfolio construction is based on three layers of investment decision making:

A multi-asset approach

The multi-asset class step revolves around setting the ideal asset allocation on a risk calibrated basis. A four-factor optimisation model serves as the basis for assessing the optimal mix of asset classes for a variety of client risk/return appetites. The weighting to each factor is calibrated based on an assessment of the risk/return profile relevant to a particular portfolio and include:

Volatilities of, and interdependencies between asset classes, worst outcomes, from a performance delivery perspective, and expected returns on a forward-looking basis, through different market cycles, all form part of understanding the assumptions and opportunities for each asset class, and ultimately the constructed portfolio.

Through multi-strategy allocations, Momentum Consult believes that certain strategy premia, in different markets, (representing a variety of asset classes) can be exploited; thereby increasing the robustness in the outcome, and the probability of delivering on the investment goal.

Through risk-managed optimisation and effective strategy selection, multi-strategy solutions are structured to harness consistent risk premia over the longer term. Strategy level enhancements are important in the sense that value can be added to the overall portfolio and thereby improve the profile of the desired outcome.

A multi-manager approach

Mandate and manager selection can add or destroy a lot of value. To gain an understanding of the potential outcome, in various market scenarios, an in-depth understanding of manager philosophies is critical. There are bigger dispersions in fund manager outcomes, over the short term, but over the longer term, fund manager outcomes revert to a long-term risk premium.

Portfolio construction and mandate selection includes the following very important principles:

  • Identify mandates and managers suitable for the selected strategies.
  • Only use active management where there is skill; otherwise passive investing may be preferable.
  • If there is a lack of consistent skill, low liquidity, high costs or narrow market depth.
  • There should be value, net of fees.
  • Manager contribution to active risk should relate to expectations.
  • A well-diversified manager blend is crucial to protect against concentrated risk and volatility in outcomes.

Our house view process

Momentum Consult has defined five wealth management strategies as follows:

  1. Cash/Income
  2. Short term
  3. Medium term
  4. Medium/Long term
  5. Long term

We have a defined strategy for specialist mandates. For each strategy we have developed a portfolio of funds; each of which has a high likelihood to deliver on its specific investment goal. Importantly, we also provide a list of additional funds appropriate for inclusion in client portfolios; each of which is classified according to various wealth management strategies.

Our house view fund list is continuously reviewed to provide a sustainable and consistent guideline to Momentum Consult financial advisers in their pursuit to deliver appropriate investment portfolios to their clients. The list of funds is constructed with the assistance of Momentum Metropolitan’s investment research capabilities.

Cash/Income strategy Short-term strategy Medium-term strategy Medium to long-term strategy Long-term strategy
The cash component is providing for short- term cash needs and the income strategy provides for one years’ income. By drawing your income and fees, from the money market, you are providing stability in your investment by not selling units - especially not when markets are falling. Seen as the cautious growth element of the investment and will aim to achieve inflation + 3%, before fees, over a rolling three year period. This strategy consists of bonds, fixed interest and income portfolios, conservative absolute return portfolios and commodities. Seen as the stable growth element of the investment and will aim to achieve inflation + 5%, before fees, over a rolling five year period. This strategy consists of aggressive absolute return funds, moderate equity exposure and conservative balanced exposure. The long-term growth element is the stronger growth component of any investment and will aim to achieve inflation +7%, before fees, over a rolling seven year period. This category consists of aggressive equity funds and BIV balanced funds with an aggressive, flexible asset allocation. The long-term return objective of this portfolio is to out-perform the FTSE/JSE Shareholder Weighted All- share Index by 2% to 3%, over three year rolling period, but at reduced volatility of investment returns. This strategy consists of equity funds, listed property and equity stocks.

Wealth management portfolios

Momentum Consult’s wealth management solutions are comprised of:

Unit trusts or segregated life portfolios

Compulsory:

  • Momentum Consult portfolios
  • Momentum Consult Factor Series of funds
  • Single manager approved funds

Voluntary:

  • Momentum Consult Factor Series of funds
  • Momentum Consult portfolios
  • International feeder funds
  • Direct offshore funds
  • International single manager approved funds

Structured and guaranteed products

Through our extensive product knowledge and expertise, we’re able to provide structured investment strategies that provide capital growth, income or a combination of the two. Our guaranteed investment portfolios offer investors real returns and the peace of mind of knowing that their money is working hard to achieve their financial wellness.

Portfolio management

Our experienced team will assist you in managing your domestic and offshore portfolio; encompassing a range of different mandates, across various asset classes and risk profiles.

Stockbroking

Momentum SP Reid Securities is an established stockbroking company in South Africa, with its origins tracing back to 1938 when the family business was established.

About us

We provide a range of stockbroking services, supported by strong management and administrative capabilities. As a member of the JSE, we are approved to trade in and manage share investments on behalf of individuals and institutions.

Our solutions

  • Advisory: Our expert team will guide you through the investment process so that you can make informed decisions and determine your desired level of involvement.
  • Asset administration: Our services include asset management, administration of corporate actions and management of estate late evaluations.
  • Discretionary (managed) portfolios: We buy and sell securities on your behalf by taking your investment objectives and risk profile into consideration.
  • Non-discretional (self-managed) portfolios: We guide and are able to execute your transactions while you actively participate in the management of your investments
  • Institutional investors (SA, Pan-Africa, global): We have a vast custodial network with execution abilities in 17 African countries; with access to all the major centres in New York, Europe and the East.
  • Securities-based lending: Through the Securities Based Lending Facility you can use the gearing power of your share portfolio to access the liquidity you need to act on important opportunities, while keeping your long-term investment objectives intact.
  • Specialist research that integrates macro and micro views.

Online trading

We offer direct access to each of the exchanges we operate in; offering you the ability to analyse your investments, trade directly and be in control of your financial assets.

Our clients’ financial wellness is at the heart of everything we do. Whatever your life stage, our financial advice and solutions will empower you to manage and enhance your financial wellness throughout your lifetime.