Cannon Asset Managers partners with EasyEquities

By: Cannon Asset Managers

Cannon Asset Managers partners with EasyEquities to launch new-age investment range

Seeking to offer investors greater ease and simplicity in investing, Cannon Asset Managers has teamed up with digitally-driven investment firm EasyEquities to launch a new range of user-friendly and cost-effective investment bundles.

Dr Adrian Saville, Chief Executive of Cannon Asset Managers, says, “One of our cornerstone principles is that investment success is driven by investing in good assets at the right price, and then giving these investments time to work and grow through the powerful force of compounding.”

“The range that Cannon Asset Managers has launched is built on the back of these key principles, giving investors access to a diverse collection of high-quality multi-asset portfolios in four convenient investment bundles.”

The bundles are each made up of a strategic blend of different asset classes, represented by Exchange Traded Funds (ETFs) and Exchange Traded Notes (ETNs) that own or mimic the performance of companies in different sectors and regions, as well as various other asset classes such as cash, bonds, property and commodities.

The exact blend of indices is carefully tailored by Cannon Asset Managers’ investment team, led by Chief Investment Officer and Portfolio Manager Samantha Steyn, to meet the specific needs, investment horizons and risk appetites of different investors. The investment portfolios include a retirement annuity (RA) and each is available as a Tax-Free Savings Account option. Investors then simply need to pick which investment bundle is best suited to their financial goals.

Steyn states that EasyEquities offers the perfect platform for the range, having rapidly gained in popularity among investors since its launch in 2014 as a low-cost investment medium with an accessible website, easy-to-use mobile app and streamlined investment process.

“By launching the solutions on EasyEquities, we have also been able to substantially reduce the costs of the bundles for investors,” says Saville, noting that EasyEquities does not charge any monthly account fees, and brokerage fees are limited to 0.25% excluding VAT, charged on the capital invested.

In addition to minimising investment costs, Saville explains that the Cannon Asset Managers’ bundles were also specifically designed to help remove two key challenges commonly faced by investors, namely selecting the right assets to match investment needs and managing the associated investment risk.

“Through the use of passive investments, or ETFs and ETNs, these bundles shift their focus onto choosing the right asset classes instead of individual shares, delivering effective and efficient asset class returns. This also means that investors benefit from extensive diversification, spreading their investment risk across and within asset classes, thereby lessening the adverse impact that any individual holding can have on the portfolio,” he explains.

“Investors will simultaneously benefit from the depth and experience of Cannon Asset Managers’ investment team, responsible for optimising and actively managing each bundle’s blend of assets to cater for changing economic, political, business and environmental conditions.”

The range of investment solutions available on EasyEquities built by Cannon Asset Managers includes:

Targeted at conservative investors seeking to protect the rand value of their capital against the risk of capital loss and against price inflation, this bundle holds a modest exposure to growth assets such as equities (up to 40%) and property (25%), and complements these holdings with investments in bonds, precious metals and cash to achieve a well-diversified blend of domestic assets with low price volatility.

This bundle is designed to produce steady, long-term wealth creation for investors by balancing income generation and capital growth while managing the risk of loss, and is well-suited to investors seeking to allocate capital to a retirement annuity. According to the laws regulating retirement funds, this bundle is Regulation 28 compliant, which means that it may hold foreign assets of up to 30% of the portfolio’s value, with an allowance for an additional 10% for African investments (excluding South Africa).

Seeking to maximise total returns over the long term, this bundle is suited to more aggressive investors seeking high capital growth with the ability to tolerate short-term market volatility or fluctuations. The portfolio manager has full discretion over asset allocation, and may shift underlying investments between different markets and asset classes to reflect changing economic and market conditions. The bundle does not comply with Regulation 28 limitations, and in the long term it targets holding half the portfolio in South African assets and half in offshore assets.

Like the assertive growth bundle, this portfolio is aggressively managed to maximise total returns over the long term by shifting assets between different markets and asset classes to reflect changing economic and political conditions. However, this bundle targets holding all of its investments in offshore assets, and is suited to investors looking for high capital growth in hard currencies. There are no geographic or currency constraints to the portfolio’s asset allocation, giving the manager the latitude to take the fullest advantage of global opportunities.