Cannon Asset Managers lands a R150 million SYmmETRY fund
SYmmETRY, the multi-manager in the Old Mutual stable, recently awarded Cannon Asset Managers a R150 million equity fund. The portfolio forms part of a fund on its life licence which targets institutional clients.
“We selected Cannon because we like asset managers with a strong competitive advantage,” explains Monene Watson, SYmmETRY’s head ofequities and qualitative research. “We believe their proprietary process allows them to cover a wider universe of shares, and also to value companies on a consistent basis to one another. The boutique nature of the company also means that with a smaller pool of assets under management they are able to invest in a larger number of companies, increasing their breadth of coverage. Cannon offers a process with a tested 8-year track record.”
Although relatively new to the institutional market, Cannon Asset Managers has a long and successful retail track record that supports its investment processes. The Cannon Equity Fund has a 3-year track record and ranks 11th out of 69 in the general equity category over this period and ranks 5th if you strip out the quants and tracker funds. Their house view equity portfolio has an 8-year track record, delivering 674% vs the ALSI of 406%, beating it by a staggering 268%.
In opting for Cannon Asset Managers, SYmmETRY was keen to benefit from its dispassionate discipline of objective investment valuation. “Not many asset managers offer the type of product that Adrian Saville [CIO of Cannon Asset Managers] does,” remarks Watson. Cannon uses a rules based process to analyse fundamental data to build their portfolios.
With close to R2.5 billion domestic assets under management, Cannon Asset Managers is a niche player in the market meaning that its universe is far greater than the average asset manager. Because of this, the breadth of its investment opportunities is greater. “As a niche manager, Cannon Asset Managers can be nimble in its investment decisions and implementation. For us that is a big value add,” elaborates Watson.
In making the decision, SYmmETRY met with Saville several times before undertaking a due diligence. The company’s models and their inputs were scrutinised. “It was very open and frank and we appreciated that. We like Adrian’s sincerity. He is a very smart investor,” notes Watson, “and we feel particularly comfortable with his management style. He brings new and successful ideas to the party.” Cannon was very open to explaining the workings of their model to us. This kind of candour is appreciated in a field where one’s intellectual capital is one’s competitive edge.
“At SYmmETRY, we like managers who have a passion for the market, and who have channelled this energy into an investment philosophy with a competitive edge,” concludes Watson. “We have found both attributes in Cannon Asset Managers.”
