With the launch of Baskets and Bundles on EasyEquities to provide easy and cost-effective access to asset managers, we are happy to welcome Cannon Asset Managers to our platform. Their bundles (managed portfolios) and RA (Retirement Annuity) bring with them highly professional asset management skills, ensuring that funds are managed carefully and fully, and providing investors with ease of mind in building their wealth.
Adrian Saville, Founder and Chief Executive at Cannon Asset Managers, says that the launch of Cannon Asset Managers’ bundles on the EasyEquities platform is the perfect complement to Cannon’s investment philosophy. “We firmly believe that investment success is driven by buying good assets at the right prices, and then giving that investment time to work which brings in the powerful force of compounding. In our opinion, the benefits of this approach are evident in the long-term results we have achieved,” he explains.
“Standing behind our investment philosophy is also a commitment to developing and maintaining strong, long-term relationships with our clients, recognising that their needs change with time and endeavouring to evolve with those needs.
“The launch of Cannon Asset Managers’ bundles on the Easy Equities platform is evidence of this commitment and belief, giving our clients and investors access to effective investment solutions at competitive costs built by an experienced team.”
Cannon Asset Managers’ Capital Preservation Bundle, Balanced Growth Bundle and Retirement Annuity invest in portfolios holding equities, property, bonds, commodities and cash. The bundles are managed to comply with the investment limits governing retirement funds (Regulation 28 of the Pension Funds Act). This means the bundles may hold foreign assets with an exposure of up to 30% of the investment value, with an allowance for an additional 10% for African (excluding South Africa) investments.
In the case of Cannon Asset Managers’ Capital Preservation Bundle, the investment is designed to protect the rand value of capital, and the portfolio strategy favours holding domestic assets to avoid the volatility often associated with foreign currency exposure. The bundle may have some exposure to growth assets, including equities (up to 40% as a low equity investment) and property (up to 25%). As a result, Cannon Asset Managers’ Capital Preservation Bundle will not hold more than 65% exposure to equities and property combined. The objective of this bundle is to achieve a return of inflation plus 2% per annum through a well-diversified portfolio of assets that protects capital and displays low price volatility.
The strategic allocation to the various asset classes is fixed at optimal weights, although this can be varied tactically from time to time to take advantage of asset class mispricing. As a case in point, we currently hold offshore exposure by way of growth assets in the form of global real estate and global equities, as we see government bonds as expensive in international markets and cash yields in hard currencies remain unattractive.
However, the exposure within the different asset classes is managed on a passive basis, which ensures that holdings deliver asset-class returns and that costs are kept as low as possible. This means that the bundle holds assets that are effective in capturing asset class performance, which contributes to achieving the ultimate goals of each of the bundles.
Cannon Asset Managers’ Balanced Growth Bundle also complies with Regulation 28, and is designed to produce steady, long-term wealth creation for our investors by balancing income generation and capital growth whilst managing the risk of loss. This makes Cannon Asset Managers’ Balanced Growth Bundle well suited to investors looking to allocate capital to a retirement annuity. The objective of this bundle is to achieve a return of inflation plus 4% per annum.
Cannon Asset Managers’ Assertive Growth Bundle invests in a portfolio of equities, property, bonds, commodities and cash. This bundle does not comply with the investment limits governing retirement funds, and is suited to investors looking for high capital growth and that have the appetite to tolerate market volatility. In the long run, the strategic allocation targets holding half of the portfolio in South African assets and half in offshore assets. However, there are no limits or constraints to the geographic allocation or currency allocation of the portfolio. Similarly, the portfolio may be aggressively managed, with underlying assets being shifted between different markets and various asset classes to reflect changing economic and market conditions. The manager has full discretion over asset allocation to maximise total returns over the long term. Cannon Asset Managers’ Assertive Growth Bundle aims to sustain a return of inflation plus 5% per annum over long investment periods.
Cannon Asset Managers’ Global Growth Bundle invests in a portfolio of equities, property, bonds, commodities and cash. As is the case with our assertive growth bundle, this bundle does not comply with the investment limits governing retirement funds, and is suited to investors looking for high capital growth in hard currencies. In the long run, the strategic allocation targets holding all investments outside of South Africa in offshore assets. There are no limits or constraints to the geographic allocation or currency allocation of the portfolio. Similarly, the portfolio may be aggressively managed, with underlying assets being shifted between different markets and various asset classes to reflect changing economic, political, business and environmental conditions. The manager has full discretion over asset allocation to maximise total returns over the long term, with the objective being to produce a return of inflation plus 6% per annum.
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Cannon Asset Managers | Rigour. Resilience. Results.
Dr Adrian Saville
Cannon Asset Managers