Momentum has declared a special double-digit bonus for smoothed bonus investors for 2005. The above-average final bonus declaration comprises a basic and a special bonus.
The final bonus declaration on retirement annuities invested in the Momentum traditional investment range and new-generation Investo product was 17%. Bonuses on smooth bonus portfolios were previously at these levels back in the early 1990s. Bonus rates are net of investment management fees and tax, where applicable.
A bonus declaration of 17% for the year ending June 30 2005 represents a real return of roughly 14%. The official CPI inflation rate was 2,8% year-on-year for June 2005.
The final bonus declaration on endowment products invested in the Momentum traditional investment range and new-generation Investo product was 16% for the year ending June 30 2005. This represents a real return of almost 13%.
A final bonus of 13% (net of tax and investment management fees) was declared on Momentum’s Performance Guaranteed Fund for retirement annuities on the Investo platform. This rate is 12% for investments in an endowment on the same platform.
The portfolio has a different investment mandate and asset allocation than a typical Momentum smooth bonus portfolio, and invests in a broader asset class mix. Exposure to local equities is capped at 50%, whereas it is not uncommon to see a typical smooth bonus portfolio invest up to 65% in local equities at the appropriate time. — I-Net Bridge