Momentum investing involves finding stocks that are the strongest, and the most likely to trade higher. In a bear market, that means buying the ones that dropped the least. When they start to lose momentum, you get out of the position. Where value investors buy low and sell high, momentum investors buy high and sell higher.
The IP Momentum Equity Fund (Tax Free) follows a quantitative momentum strategy, investing in the top 180 most liquid shares of the JSE, measured in terms of average weekly trading volumes. The strategy is designed to provide the maximum returns obtainable from a pure equities investment at the lowest risk possible. A minimum exposure of 80% to South African equities will be maintained at all times, and a maximum of around 95%.
Global Unit Trust
The IP Global Momentum Equity Fund is a moderate to high risk, global, equity fund. The objective of this portfolio is to achieve capital appreciation by following a quantitative medium to long term equity strategy investing primarily in foreign markets. The portfolio is constructed using proprietary ranking and weighting methodologies to select momentum, value and blue chip shares.
Investments to be included in the IP Global Momentum Equity Fund will, apart from assets in liquid form, consist of equity securities and financial instruments and may include listed property. Investments will be primarily in foreign markets but there will be no restrictions on the geographic asset allocation.