Blue Chip Issue 89

BLUE
CHIP FINANCIAL PLANNING | DFM
For instance, Aladdin Wealth, an innovative portfolio analytics
and risk management technology brought to South Africa by
Cogence, equips advisers with a wide range of sophisticated
tools that leverage data-driven insights to help improve portfolio
management and reporting.
This technology allows advisers to test their ideas for suitability
against a client’s portfolio while also being able to stress-test
against future risk scenarios, such as a repeat of the subprime
mortgage crisis. Technology is also essential for factoring in
modern demographic and behavioural trends that are becoming
central to mapping out individuals’ retirement journeys.
Finally, the combination of technology and expertise can greatly
enhance reporting as a DFM can offer full transparency and a realtime
overview of a client’s investment picture based on a variety
of personalised metrics. Personalisation through digitisation can
guide the conversation between adviser and client to overcome
biases and help investors stay on track to meet their long-term
goals, despite market volatility.
A DFM introduces top-quality strategic allocation,
increases efficiencies in the advisory practice and improves
investor governance while allowing advisers to build better
relationships with their clients, focus on their needs and
find solutions to those needs. Ultimately, as most advisers
are focused on performance when selecting a DFM, the
partnership should work to improve the investment outcome
for clients.
website link: www.cogence.co.za
Disclaimer
Cogence (Pty) Ltd. Registration 2009/011658/07. An authorised financial services provider (FSP No 52242). BlackRock® is a registered trademark of BlackRock, Inc. and its affiliates (“BlackRock”) and is used
under license. BlackRock makes no representations or warranties regarding the advisability of investing in any product or the use of any service offered by Cogence (Pty) Ltd. BlackRock has no obligation
or liability in connection with the operation, marketing, trading or sale of any product or service offered by Cogence (Pty) Ltd.
BlackRock’s Aladdin Wealth platform is designed for financial professional use only and is not intended for end investor use. Aladdin Wealth is a financial technology and risk analytics platform that is
independent of Cogence. Cogence program users undertake sole responsibility and liability for investment or other decisions related to the technology’s calculations and for compliance with applicable
laws and regulations. The technology should not be viewed or construed by any Cogence program users, or their customers or clients, as providing investment advice or investment recommendations
to any parties. This material should not be construed as a representation or guarantee that the use of Aladdin Wealth technology will satisfy your legal or regulatory, tax or accounting, obligations.
BlackRock, as provider of the technology, does not assume any responsibility or liability for your compliance with applicable regulations or laws, or tax or accounting obligations. BlackRock may modify
or discontinue any functionality or service component described herein at any time without prior advance notice to you.
[1] What are advisers thinking | NMG consulting on NinetyOne | https://ninetyone.com/en/south-africa/insights/what-are-advisers-thinking. 2020
[2] South African DFMS, Multi-Managers & Wealth Managers | Insights into Investment Boutiques, RMI 2018 | https://bit.ly/3TYrEwH
46 www.bluechipdigital.co.za