Momentum Investment Consulting has officially re-launched its discretionary fund management (DFM) capabilities under the equilibrium brand. The business was established in 2008 as an independent DFM and currently boasts assets under management of R13.5billion.
The DFM industry has seen rapid growth over the last few years. In 2021, it was estimated that between 15% and 20% of retail investments in South Africa were either being managed or advised by a DFM. Partnering with a DFM offers several benefits for advisers. Importantly, it can free up time for financial advisers to focus on giving advice and growing their business, rather than managing assets and navigating an increasingly complex market and investment regulatory environment on their own. Given ever-tightening regulatory controls on South African client portfolios, it’s often not feasible for an advisory business to manage the risk of compliance associated with each individual client’s portfolios without full insight into them, whether it’s an issue of scale or expertise. It can be helpful for advisers to pass this on to a skilled, professional DFM.
Florbela Yates, Head of equilibrium, says, “We are really excited about the re-brand because we genuinely believe in the equilibrium philosophy. It’s about bringing balance to financial adviser practices so that they’re able to spend more time advising clients instead of having their focus diluted by investment-related tasks like reporting, attribution, asset allocation and portfolio construction. “
The combined forces of our DFM offering under the equilibrium brand is set to be highly beneficial to advisers. Not only are we able to improve operational efficiencies like making administration and implementation simpler, but we are also able to communicate detailed fund and market information to clients and remove the governance and compliance burden of managing assets from them.”
Portfolio management at equilibrium is undertaken by an experienced team of fund managers, who are also able to leverage the skills of more than 80 local and global investment professionals within the greater Momentum Group. Solutions are implemented either through a model portfolio or a fund-of-funds structure, depending on the adviser’s licence (Category I or II).
Portfolios are available on most of the leading linked investment services provider (LISP) platforms in South Africa and are designed to be efficient and optimised through market cycles ensuring clients stay invested and achieve their financial goals.
“As part of the re-brand, we will continue to provide advisers and their end-clients with tailored outcomes-based investment solutions and the superior service they have always enjoyed at Momentum Investment Consulting,” Yates concludes.
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