Disgraceful interest returns on Momentum Pension Funds

During September 1997 I left the employment of my employer of many years. I was informed by Momentum that I had to withdraw my pension out of the “Momentum funds at work umbrella pension fund” and reinvest in the “Momentum Corporate Pension Preservation Fund”. After a marathon liaison exercise with Momentum my pension was finally reinvested into the “Momentum Corporate Pension Preservation Fund” on the 23/04/2019. The glossy brochures of Momentum indicate the following growth for the "Momentum Corporate Pension Preservation Fund". Momentum Passive CPI+4 3 months: 0.23%, 6 months: 3.07%, 1 year: 4.21%, 3 years: 5.22%, 5 years: 6.07%, 7 years: 8.98%. The table below indicates that my pension reinvestment decreased by -10% over an 11 month period.

23/04/2019 R689 602.99 (Reinvestment) 30/04/2019 R689 476.64, -R126.35 (decrease) 04/06/2019 R675 818.87, -R13 657.77 (decrease) 17/11/2019 R699 130.61, R23 311.74 (increase) 17/12/2019 R693 273.47, -R5 857.14 (decrease) 17/01/2020 R705 361.01, R12 087.54 (increase) 17/02/2020 R709 829.88, R4 468.87 (increase) 17/03/2020 R620 654.76 -R89 175.12 (decrease) Total loss over 11 months -R68 948.23 As can be seen from the above, the poor growth was long before the Corona Virus. My advice to South Africans who have entrusted Momentum with their pension, is to go onto the Momentum Website and to complete the Momentum online registration in regards their pension. After this registration it is possible to down load your individual benefit statement. South Africans will be horrified to discover the truth in regards their Momentum Pensions.

Regards

Doug Mc Dougall