Blue Chip Issue 90

BLUE
CHIP
On the money
Making waves this quarter
AI strengthens investments and Ashburton fortifies team
ASHBURTON BOLSTERS TEAM IN SA ASSET MANAGEMENT
Ashburton Investments, the FirstRand group’s trusted asset manager,
is bolstering its team of investment professionals in the South African
asset management industry, with key new hires under its CEO, Duzi
Ndlovu, who joined in 2022 and CIO, Patrice Rassou, who joined in 2020.
Ashburton currently has R140-billion of Assets Under Management
(AUM) and plans to grow exponentially in the next three years by
scaling its equity, multi-asset, fixed-income and global capabilities,
while widening its distribution footprint.
“The first step in achieving our growth goal was to cement the
investment team under Rassou’s leadership. This included the key
appointment of Charl de Villiers as Head of Equities in 2021. De Villiers
has a stellar portfolio management track record, and his addition has
added significant industry experience to the team,” says Ndlovu.
Vanessa Pillay was appointed as Ashburton Investments’ head of
corporate and commercial distribution in October 2023. She has more
than 25 years of financial markets and asset management experience.
PSYCHOLOGY AND AI IN INVESTMENTS
AI has emerged as a game-changer in the realm of investments, but its
relationship with psychology is equally intriguing. Psychology and AI share
a crucial commonality: their reliance on data collection and analysis to
predict outcomes. The interplay between human behaviour and financial
markets underscores the significance of this convergence. The psychology
of money delves into how our attitudes, beliefs and emotions surrounding
money shape our financial behaviours. As AI algorithms sift through vast
datasets, they identify patterns that provide profound insights into investor
sentiment and behaviour.
When it comes to investments, AI transcends the boundaries of
conventional methods. The capacity to classify underlying emotions, such
as fear or enthusiasm, and predicting investor behaviour is where AI excels.
The psychology of money unearths the intricacies of our relationship
with finances. Deep-seated beliefs, past experiences and societal
influences mould our financial behaviours, impacting investment choices.
Understanding these psychological underpinnings is instrumental in
devising effective investment strategies. Investors are a diverse group, each
with their unique tendencies that influence their decisions. Using AI and
psychology can lead to understanding the below investor types:
Market timers. This archetype succumbs to herd mentality, acting
based on prevailing market trends. They often fall prey to emotional
surges during market crashes.
Assertive investors. These individuals thrive on identifying the next
Vuyo Mvulane was appointed as the head of institutional distribution
eight months ago. His experience spans manager research, portfolio
management, business development and client service.
These appointments follow the appointment of Kashif Noor to the
position of head of retail distribution at Ashburton a year ago. Noor was
previously Nedbank’s head of wealth management for the Cape and
coastal regions. He also previously worked for ABSA Wealth, Coronation
and Lloyds TSB.
Focusing on financial intermediaries, specifically independent
financial advisors, LISP platforms as well as DFMs, Steven Amey was
appointed as the head of intermediated distribution at the start of
2023. He gained his asset management, asset consulting, short-term
insurance, healthcare and financial planning expertise fulfilling senior
roles at Discovery Invest, Sasfin, Ninety-One and Glacier. With more
than 22 years of distribution experience, Amey holds an MCom in Tax
and is a CFP®.
big investment trend. They exhibit a proactive approach and aren’t afraid
to take calculated risks to secure substantial gains.
Anxious investors. Anxious investors are cautious and risk-averse,
particularly in volatile markets.
Avoider investors. This group prefers conservative, low-risk
investments. They might be open to risk-taking in non-financial aspects
of their lives.
Number of Funds Portfolio Value Age
$
Size of Switch Number of Switches 12m Switch History
Perfomance
vs Peers
Why do investors switch?
Machine learning using over 12 million observations tells us
2 1 3 2 1 3
12m Perfomance
$
6m Perfomance
Loss system
Belief system
Win-Stay
Lose-Move
Risk perception