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Effective distribution in the retail market in order to attract investments from the public

Gradidge-Mahura Investments (GMI) has arrived on the investment scene offering a 21st Century approach to business development in the asset management industry, specifically on the retail side.

The company has hand-picked a selection of non-competing asset managers, with different investment styles and different asset classes, to represent in the market.

After a rigorous filtering and due diligence process GMI is to act on behalf of Cannon Asset Managers, a value equity manager, and Kagiso Asset Management, a specialist investment manager which combines focused, in-depth fundamental research and market leading quantitative research.

According to GMI director, Craig Gradidge (Pictured right), "there are a number of factors that assist in effective distribution in the retail market, which an asset management company needs to have in place in order to attract investments from the public."

Without these factors, building a retail presence becomes that much harder.

"The managers that we have as clients have delivered exceptional performance in the past, but their retail sales did not match their excellent track records," adds Gradidge.

"Our job is to build distribution to realise their potential." These factors include positioning the funds correctly in the minds of the advisers, having appropriate communication in place, and having the fund managers engaging with the market regularly and on the right platforms. 

"The advantages of this arrangement are clear," notes Geoff Blount, CEO of Cannon Asset Managers. "We are able to broaden our distribution in a highly cost-efficient manner, to the ultimate benefit of our clients."

"We are effectively able to outsource our distribution to experts, which will allow us to focus on managing our clients' investments and delivering the kind of performance that they have come to expect from us."

"The team at GMI has over 20 years of experience in the industry, primarily in marketing and in business development, and is in a good position to help drive sales into our CIS funds as well as establishing support structures between our business and this market," adds Blount.

"The retail market is an extremely important market to us and this relationship will help us get a lot closer to this market" remarks Blount.

CEO of Kagiso Asset Management, Roland Greaver, observes that: "While most other players in the investment industry spend abundantly to add distribution infrastructure to their retail businesses, at Kagiso Asset Management we have remained focussed on our core business of producing pleasing investment returns for our clients."

"This 'outsourced' relationship that we have entered in with GMI is further evidence of our stated objective of staying lean on distribution and to concentrate on what we do best. The experience and networks that the GMI team brings to the table will clearly extend our reach into the retail market."