About the Manager and Strategy

RISK
1-35

Cannon Asset Managers’ Capital Preservation Bundle invests across all the major asset classes. including equities. property. bonds. commodities and cash to protect initial capital from downside risk and to produce long-term investment returns ahead of inflation with a conservative risk profile. The investment strategy targets an equal-weighted portfolio of equities. bonds. property and cash. although this is varied tactically from time-to-time to protect investments against market risks or to take advantage of asset class mispricing.

The exposure within the different asset classes is managed on a passive basis. which ensures holdings deliver efficient asset-class returns and costs are kept as low as possible. The primary goals of the bundle are to protect capital from negative returns whilst steadily growing the investment ahead of inflation.

Cannon Asset Managers’ Capital Preservation Bundle invests in a portfolio of equities. property. bonds. commodities and cash. The bundle is managed to comply with the investment limits governing retirement funds (Regulation 28 of the Pension Funds Act). This means the bundle may hold foreign assets with an exposure of up to 30% of the investment value. with an allowance for an additional 10% for African (ex-South Africa) investments. However. given that the bundle is designed to protect the Rand value of investments. the portfolio strategy favours holding domestic assets to avoid the volatility often associated with foreign currency exposure. The bundle may have exposure to growth assets. including equities (up to 40% as a low-equity investment) and property (up to 25%). As a result. the bundle will not hold more than 65% exposure to equities and property combined. The strategy targets an equal-weighting in the major asset classes to achieve the two goals of protecting initial capital from downside risk which achieving modest capital growth to preserve the real value of the investment against inflation

The bundle is suited to investors who

1. Are looking for long-term capital growth ahead of consumer price inflation
2. Want to protect their investment against market fluctuations
3. Have an investment horizon of at least two years.

Underlying Bundle Total Expense Ratio (TER) 0.41

Transaction Costs 0.13

Asset Management Charge 0.65

Effective Annual Cost (%) 1.09

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Bundle Information

RA Investable YES
Launch Date 2018/04/30
Benchmark CPI+2
Minimum Time Horizon 2 Years
RA ZAR TFSA USD

Percentage and Performance

Costs

Management/Bundle Fee 0.65%
TER 1.06%
Estimated TC 0.13%
Estimated TIC 1.19%

Performance

* Performance quoted excludes management / bundle fee's
May 2021 2.34%
Last 3 Months 3.88%
Last 6 Months 12.98%
YTD 5.05%
Last 12 Months 15.94%
Last 3 Years N/A
Last 5 Years N/A
Since Inception N/A

Bundle NAV

Volatility

Since Inception 8.81%
1 Year Volatility 8.42%
3 Year Volatility 8.81%
Best Month 7.27%
Worst Month -7.84%
Maximum Drawdown -14%
Since Inception 8.81%
1 Year Volatility 8.42%
3 Year Volatility 8.81%
Best Month 7.27%
Worst Month -7.84%
Maximum Drawdown -14%

Sector Allocation

Asset Allocation

Bonds 31.5%
Property 3.69%
Cash 17.17%
Local Equity 30.65%
Foreign Equity 16.99%

Constituents

Here is a list of companies/ETFs that make up this bundle.

NewFunds GOVI ETF
31.74%
Sector
Bonds
Industry
Sub Industry
Industry Group Name
CoreShares Top50 ETF
17.23%
Sector
Local Equity
Industry
Sub Industry
Industry Group Name
Satrix MSCI World ETF
16.60%
Sector
Foreign Equity
Industry
Sub Industry
Industry Group Name
NewFunds TRACI 3 Month ETF
13.74%
Sector
Cash
Industry
Sub Industry
Industry Group Name
Satrix DIVI ETF
5.68%
Sector
Local Equity
Industry
Sub Industry
Industry Group Name
CoreShares PrefTrax ETF
4.05%
Sector
Local Equity
Industry
Sub Industry
Industry Group Name
NewGold ETF
4.03%
Sector
Materials
Industry
Sub Industry
Industry Group Name
Satrix Property Portfolio ETF
3.62%
Sector
Real Estate
Industry
Sub Industry
Industry Group Name
Cash
3.26%
Sector
Industry
Sub Industry
Industry Group Name