momentum corporate partnership connect · advisers / consultants data analytics pricing and...

Momentum Corporate Partnership ConnectProduct SolutionsNovember 2018

For more information please visit http://www.momentumpartnershipconnect.co.za/

http://www.momentumpartnershipconnect.co.za/

For discussion

Outcome-based

investingDisability Smart

Counsel

FundsAtWorkDigital

transformation and client

experience

Multiply for Corporates

Regulatory changes

Clients insights

Advisers / consultants

Data analytics

Pricing and sustainability

What we look at when we do our regular product reviews

Default Retirement Regulations

For discussion

Disability Smart Counsel

FundsAtWork

Digital transformation

and client experience


Outcome-based investing

Outcome-based investing

Birthday risk?

Sustainable performance

Optimised risk measures

Outcome-based investingMomentum Investments

Returns relative to competitorsfor the period to 30 September 2018

Multi-manager portfolios One year Three years Five years

Momentum Enhanced Factor 7 5.0% 7.8% 9.6%

Momentum Classic Factor 7 5.2% 8.2% 9.9%

Alexander Forbes Investments High Equity 4.2% 7.1% 8.3%

SMM 70 (Sanlam) 3.7% 6.3% 7.8%

Sygnia Signature 70 Fund 5.1% 6.5% 10.2%

• Returns are annualised for periods greater than 12 months• Source: Alexander Forbes Multi Manager Final Survey and Alexander Forbes Manager Watch (selected) as at September 2018

Risk measures for Enhanced Factor 7Momentum InvestmentsMaximum drawdowns Information ratio

Hit ratio Shortfall

Enhanced Classic

Portfolio -10.26% -11.10%

Benchmark -13.36% -13.36%

Enhanced Classic

Portfolio 89.00% 81.80%

Benchmark 76.40% 76.40%

Enhanced Classic

Portfolio 1.63 1.81

Benchmark 1.67 1.67

Enhanced Classic

Portfolio 0.11% 0.44%

Benchmark 0.24% 0.24%

You’d recommend it to your mother.

Momentum Smooth-Edge Fund

Momentum Smooth-Edge Fund: asset allocation

Investment style Allocation

Passive 60.5%

Smart-Beta / Enhanced Indexing 22.0%

Active 17.5%

Up to 33% less in capital charges

100% capital guarantee on benefit payments

Targets CPI + 4 net of all fees and charges

Momentum Smooth-Edge Fund: fees and charges

Requirement: R25m assets under management

• 0.25%

Investment management fee Underlying asset charges

• Capital charge: 0.60%• Asset management fees: 0.14%• Performance fees: none

* Total Cost: 0.99%

Empowered Smooth Growth Fund

Low risk portfolio

100% capital guarantee on benefit payments

High performance BEE asset management team with a proven track record

Criteria Minimum requirement Current score

Black shareholding (look through basis) More than 50% 58%

Black management, portfolio management and analyst More than 40% 49%

Black procurement More than 50% 51%

Empowered Smooth Growth Fund

First empowered smooth bonus solution in the market that offers 100% capital guarantee

Robust portfolio construction and asset manager selection process

Momentum Investment’s outcome-based investing philosophy

Empowerment criteria applied to local assets – derived from DTI’s B-BBEE scorecard

Empowered Smooth Growth Fund:Fees and charges

• 0.35% of the first R50m• 0.25% on the excess i.e.

above R50m

Policy fee Underlying asset charges

• Capital charge: 0.90%• Asset management fees:0.30%• Performance fees: only paid on

the ‘local alternatives’ (1.25% of the portfolio)

For discussion

Smart Counsel

FundsAtWork




Outcome-based investing Disability

Disability

DisabilityWellness Care Centre

Benefits paid out for 6 500 people with disabilities last year

R376.5m benefits paid out for people with permanent disabilities last year

Momentum provides disability benefits to70% of all mining schemes in South Africa

Momentum provides risk benefits to 5 800 employers and over1.4m employees

As per the 2016 Swiss Re Group Volumes survey: Momentum is the largest lump sum disability and critical illness provider (39%) and 2nd largest income disability benefit provider (24%) in South Africa

Disability: what our clients say

Employers need to balance affordability with meeting needs

Members don’t think they are likely to become disabled

Members don’t anticipate the financial impact

Some employers find it onerous to keep members on payroll

Dependencies on external parties cause delays which are stressful for all

Difficulty in completing forms, multiple points of contact

Claimants prefer human contact

We need to keep the product simple and educate members on their benefits

Reimagining disability

Introduced a ‘more efficient structure at a lower cost’

More affordable 1

More equitable 2

Simpler3

Customised to meet specific needs

4

Disability benefits are

Reimagining disability

Income benefits are calculated as % of net insurance salary

Daily life adapter1

Permanent income booster

2

Additional benefits

Critical top-up3

Cash assistance benefit

4

Point-to-point service5

Online claim submission via employer portal

6

For discussion

FundsAtWork




Outcome-based investing Disability Smart

Counsel

Smart Counsel

Smart Counsel

Default investment portfolio(s)

Default in-fund preservation option

Default annuity strategy

Any other benefit or option available

Telephonic servicewith qualified benefit counsellors

Annual member conference for members in Gauteng, Durban, Cape Town

Digitalengagement

An omni-channel approach to give everyone access in a cost effective manner

Leads generation

for the intermediary

Available for our umbrella

fund, investments and annuity

clients

For discussion

Smart Counsel





FundsAtWork

FundsAtWork

2018 Imbasa Yegolide awards

2017 Loeries

2018 Loeries2 0 1 8AWAR D W IN N ER

2017 FIA Award

2016 FIA Award

2016 Imbasa Yegolide awards

2016 South African Customer Satisfaction Index (Sacsi)

2015 PMR awards

Silent Generation

1928 - 1945Baby Boomers

1946 - 1964Generation X

1965 - 1980Generation Y (Millennials)

1981 - 1996Generation ZAfter 1996

FundsAtWork: one size does not fit all

Clientengagement

Savings & investment

Insurance

FundsAtWork: product enhancements

Default annuity strategy• Golden Income With-Profit Annuity• Golden Living Annuity

Smart Counsel

Momentum Smooth-Edge Fund

Default Investment Portfolio• Momentum Classic Lifestages

Lifestage Defender building block• From CPI+3% to CPI+4%

Customisable lifestage solutions• Provider option• R5m assets

Family Protector education benefit• Education support

For discussion

Smart Counsel

FundsAtWorkMultiply for Corporates




Solving through digital transformation

Lost in translation

Wrong time, wrong place wrong format

Just go with the status quo

Trust me, it’s personal

The evolution of me

Smart Solutions

Smart Underwriting

Smart Exits

Smart Retirements

Smart Onboarding*

Momentum App

*Coming soon

Client experience and digital adoption

86% of FundsAtWork clients use the employer portal

54% of withdrawal claims are notified through digital channels

Call hold time:• Average 14.86 seconds• SLA 20 seconds

Lost call rate:• 1.64% (September 2018)• Improvement from 12.3%

in July 2017 Smart Exits

preservation:

5X higher than the average

“Very informative and allows you to think of the future and plan accordingly.”

“The questions asked made a person really think of what you are currently putting into the pension fund and what to expect later on.”

The overall experience was very thought provoking and stimulating.”

“The information relayed encouraged participation in a user friendly manner... it’s a reality check.”

“This is a really cool tool and I hope all of our clients make use of it, because it could really add value to their lives.”

Smart Retirements

Employer / HR“Prefer this process to the old paper based forms…”“Saves me time with less paperwork”“So simple that training isn’t really required”

Smart Exits

Members“… makes you think about tomorrow”“I reduced my cash amount when I saw the tax”“This process is so efficient”“It changed my mind towards saving my funds”“Easy to read, understand, click”“End to end messaging was clear”

Advisers and consultants“It’s better for the member and makes the tax implications clear”“Training isn’t necessary”

Smart Underwriting

“I just want to say that I am so happy that this is how the underwriting is now being done – so much more efficient!”

Adviser from Cape Town, 5 June 2018

“Well done with the Smart underwriting. It works well. Two more [members] for Smart please.”

Adviser from Cape Town, 25 May 2018

“Hierdie werk soos ‘n bom! Well done aan wie ookal besluit het om dit so te doen.”

Adviser from Pretoria, 25 July 2018

For discussion

Smart Counsel

FundsAtWork





Bringing it all together for the employer

Increased points for group insurance products

New engagement activities

Simplified workplace safety assessment

Lead fee for the intermediary R1 000

Discussed

Outcome-based

investingDisability Smart

Counsel

FundsAtWorkDigital

transformation and client

experience


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