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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| RA Investable | YES |
| Launch Date | 2018/04/30 |
| Benchmark | CPI+2 |
| Minimum Time Horizon | 2 Years |
| Management/Bundle Fee | 0.65% |
| TER | 1.06% |
| Estimated TC | 0.13% |
| Estimated TIC | 1.19% |
| May 2022 | 1.14% |
| Last 3 Months | 3.37% |
| Last 6 Months | 6.91% |
| YTD | 0.35% |
| Last 12 Months | 15.07% |
| Last 3 Years | N/A |
| Last 5 Years | N/A |
| Since Inception | N/A |
| Since Inception | 8.14% |
| 1 Year Volatility | 4.4% |
| 3 Year Volatility | 8.83% |
| Best Month | 7.27% |
| Worst Month | -7.84% |
| Maximum Drawdown | -14% |
| Since Inception | 8.14% |
| 1 Year Volatility | 4.4% |
| 3 Year Volatility | 8.83% |
| Best Month | 7.27% |
| Worst Month | -7.84% |
| Maximum Drawdown | -14% |
| Bonds | 30.51% |
| Property | 3.33% |
| Cash | 16.87% |
| Local Equity | 32.9% |
| Foreign Equity | 16.39% |
Here is a list of companies/ETFs that make up this bundle.
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Sector Bonds |
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Sector Local Equity |
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Sector Foreign Equity |
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Sector Cash |
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Industry |
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Sub Industry |
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Industry Group Name |
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Sector Local Equity |
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Sector Local Equity |
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Sector Materials |
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Sector Real Estate |
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