Momentum Group Limited · JSE:MTM
Momentum — Investor Presentation (May 2025)
35 slides from Momentum's investor presentation, May 19, 2025
Slide 1: Unpacking Momentum Investments within an evolving investments landscape
UNPACKING MOMENTUM INVESTMENTS WITHIN AN EVOLVING INVESTMENTS LANDSCAPE 19th May 2025 Ferdi van Heerden
Slide 2: Agenda
Agenda Who we are and our core capabilities Market dynamics and key considerations Strategy to navigate towards the future Structured Products and Annuities Wealth Management Multi Management Asset Management Why we will win
Slide 3: Who we are and our core capabilities
Who we are and our core capabilities 3
Slide 4: Diverse range of capabilities
Diverse range of capabilities Structured products and Annuities Institutional platform Wealth Management (local and international LISP) Multi-Management Asset Management Multi- Model Portfolio Institutional Independent Managed Funds Solutions Retail Asset Asset Specialists (MMM, MGIM, (Equilibrium)
Slide 5: Our executive team
Our executive team CEO: Momentum Investments Ferdi van Heerden Core planning units Planning Planning Planning Planning Planning Planning unit WEALTH unit STRUCTURED unit MULTI- unit CURATE unit ASSET unit ASSET STOCK MANAGEMENT PRODUCTS & MANAGEMENT INV MANAGERS MANAGEMENT MANAGEMENT (AM) BROKING AN
Slide 6: Market dynamics and key considerations
Market dynamics and key considerations 6
Slide 7: Investment landscape trends
Investment landscape trends Low SA growth Changing client needs • Vertical integration • Digital capabilities (self-drive, • New markets & segments self-manage services) • Consolidation & partnerships • Personalisation in delivery • Closer engagement with clients • Integrating into advice practices
Slide 8: Strategy to navigate towards the future
Strategy to navigate towards the future 8
Slide 9: Stated ambition and aspiration
Stated ambition and aspiration Being a trusted investment and wealth manager, WINNING LONG-TERM who crafts sustainable local and global solutions offering ASPIRATION unique engagement journeys that advisers and clients can rely on to build and protect their financial dreams. Establish ourselves as a
Slide 10: Impact strategy focus areas
Impact strategy focus areas STRATEGIC Growth Client experience Operating Product People model choices FOCUS • Vertical integration • Creating unique • FNZ re-platforming • Product • EVP AREAS • Global growth/ new markets distinctive individualised • Optimisation of capabilities/funds simplification
Slide 11: Cohesive with Momentum Group's objectives
Cohesive with Momentum Group’s objectives s | We build l dream &p rot ia ec anc t ou fin rc s’ lie nt Design simplified n lie ts Unlock the full rc and impactful client ’f in ou experiences as a potential of our an t foundation for core businesses ec cia rot growth l dr &p eam VNB | We build s R1.2b
Slide 12: Key deliverables / requirements for success
Key deliverables / requirements for success PRIORITY CRITICAL DELIVERABLES Operating model & FNZ implementation benefits, scale and synergies, invest in digital enablement, etc cost base Curate Asset Launch Curate in August 2024, and build proposition actively over the next 3 years Management New ma
Slide 13: Digital and technology advancements
Digital and technology advancements DIGITAL SELF-SERVICE Continuous investment in existing digital capabilities and automation WhatsApp launched July 2024 for clients Phase 2: switch to FNZ fully digital platform CONTACT CENTRE Optical Character Recognition Call centre technology PORTFOLIO MANAGEMEN
Slide 14: Asset gathering / Distribution strength
Asset gathering / Distribution strength Independent advisers / Trustees / Asset Consultants Consult franchises / MFP agents Platforms FAW Umbrella fund Wealth local platform Wealth offshore platform Default (institutional) solutions Directly into Houseview (retail) solutions (Multi Manager) Products
Slide 15: Momentum structured products & annuities
momentum structured products & annuities
Slide 16: We provide personalised certainty
We offer a range of guaranteed solutions - including annuities and innovative structured products - enabling clients to control investment risk and remain protected during market volatility / downturns. By removing uncertainty, advisers can deliver reliable outcomes, build trust, and create sustaina
Slide 17: Living versus Life — or both!
Living versus Life — or both! Momentum Investments benefit from all interest-rate market conditions Year on year growth Year on year growth Market share — Life annuities — Living annuities — Retirement Income 80% 35% 25% 30% 60% 25% 20% 40% 20% Growth rate 15% 15% 20% 10% 10% 0% 5% 0% -20% 5% -5% -4
Slide 18: Diversifying revenue with structured products
Diversifying revenue with structured products Using our strong balance sheet to manage volatility on a personal level by blending certainty and market exposure. Guaranteed Index Personalised Bespoke structured Retail Annuities and Guaranteed Dynamically Hedged products structured products Endowments
Slide 19: Momentum wealth management
We) momentum wealth management group
Slide 20: Singular personalisation on your journey to success
LISP business – Local and offshore. The most open architecture investment platform, that connects clients, advisers and investment managers in a dynamic ecosystem, delivering tailored choices and breadth of investment options. Built for scale and efficiency. These are all backed by cutting-edge plat
Slide 21: Enhancing client experience through digitisation
Enhancing client experience through digitisation Wealth is laying the foundation for current and future needs as well as scalability Digitally transform the Wealth platform and reinvent the Reinvent: proposition to better meet the needs of advisers and rationale for change their clients. Grow the bu
Slide 22: A platform gearing for distribution growth
A platform gearing for distribution growth Momentum’s distribution heritage will benefit Momentum Wealth by exploiting scale HISTORIC MDS TOTAL 5Y GROWING THE AGENCY – PRODUCTIVE PRODUCTIVE GROWTH MOMENTUM ADVISERS 900 60% 800 57% 700 41% 600 500 28% 400 22% 300 8% 200 100 IFA INVESTMENT INSURER ADV
Slide 23: Momentum multi-manager
23 omentum multi-manager a a AL |
Slide 24: Stewards of your investment success
Investment solutions business – Local and Global. Providing centralised investment propositions (house view solutions for advice partners, as well as default solutions for umbrella funds). Focused on investment returns, managing risk, by leveraging expert research and insights. We deliver this throu
Slide 25: Where vertical integration comes together
Where vertical integration comes together Leveraging our strong partnership DNA to attract more assets inhouse via centralised investment propositions Momentum Financial Planning & CI Associates & Spectrum EB consultants (via FAW) Consult (by Momentum) (minority owned) Advice, platforms & products £
Slide 26: Achieving investment excellence
Achieving investment excellence We don’t compromise on client outcomes Three Five Ten Realised probability Maximum out- Maximum under- Institutional portfolios Retail portfolios years years years of outperforming performance p.a. performance p.a. Momentum Enhanced Consult Select 3 80% 8.19% -3.40% 1
Slide 27: A global operating model
A global operating model Combining the best of local and offshore expertise to become a truly global player We are an international UK presence gives us a business with clients across platform to access to skills, the globe global markets and clients SA and UK teams combined We offer fund administra
Slide 28: Momentum asset management
omentum asset management
Slide 29: Direct asset management options, owned or through partnerships
Direct asset management options, either owned or through partnerships / shareholding. Delivering investment building blocks for investment solution providers (DFM’s, consultants, and advisers). Focused on investment returns, managing risk, by leveraging expert research and insights. We deliver this
Slide 30: Asset Management trends
Asset Management trends Fees Pricing pressures & Value chain fee share CIP Growth of default / centralised investment propositions DFM’s Partners of choice for IFA’s SAA Shift to strategic asset allocation versus multi-asset funds Global Need for global exposure / offshore investments Passives Growt
Slide 31: Our view of future (relative) demand
Our view of future (relative) demand Asset classes Multi-asset Active equity Structural lower yield environment will migrate more assets into Systematic or low-cost equity systematic solutions Fixed income Alternative assets The search for yield will migrate more assets into alternative asset classe
Slide 32: Our existing commercial exposure
Our existing commercial exposure RSA asset classes Offshore asset classes RETAIL INSTITUTIONAL RETAIL INSTITUTIONAL Multi-asset Active equity Systematic or low-cost equity Fixed income Alternative assets
Slide 33: Conclusion
Conclusion
Slide 34: Our right to win
Why will we be successful? Our COMPREHENSIVE range of Group BALANCE SHEET HIGH-QUALITY capabilities Our Our approach to DIGITAL Our PARTNERSHIP INNOVATION, delivered WITH A RIGHT DNA and RETAIL DISTRIBUTION HUMAN HEART to win heritage Our Group DISTRIBUTION Well positioned for TARGETED STRENGTH & ou
Slide 35: Questions
momentum group Questions