Equilibrium Investment Management

Not all DFMs are created equal –
Why I rejoined the Equilibrium team
By Carl Chetty, CFA (Head: Investment Proposition)
“You don’t know what you’ve got until it’s gone” is a saying that resonated deeply with
me after leaving Equilibrium during the Covid pandemic in 2021. I joined the team in 2017
as a Portfolio Manager, but my early career curiosity led me to explore other DFMs. Now,
having returned to Equilibrium in June, I want to share why I came back and why our
clients – both financial advisers and end-investors – can trust in our industry-leading DFM.
Outcome-based investing (OBI)
Many DFMs aim to outperform peer groups or market indices, which often overlooks the actual needs of
individual investors. Key questions like “Can I retire?” or “Can I afford my child’s education?” are far more relevant
than simply comparing fund performance. OBI addresses this disconnect by prioritising investor goals
within the management process, focusing on a comfortable investment journey. Goals are defined by an
investment horizon (eg five years), a risk budget (eg limiting annual losses to 5%) and a realistic range of
returns (eg CPI + 4-5%).
OBI is firmly rooted in investment theory and global practice, and I genuinely believe in its power to help individual
clients achieve their financial dreams and aspirations with more certainty. Equilibrium’s strong heritage and
its connection to one of the pioneers of OBI in South Africa uniquely position the company to help financial
advisers shift the focus from merely selecting the best funds to finding solutions that minimise uncertainty in
achieving investment goals.
Skill, depth and scale
Managing client investment portfolios has become increasingly complex due to a rise in funds and asset
managers, new investment strategies (like retail hedge funds and ESG funds), relaxed offshore limits for
retirement portfolios and a volatile market environment. Making informed decisions on asset allocation, manager
selection and portfolio construction requires considerable skill and comprehensive research. By leveraging the
extensive investment expertise within the broader Momentum Investments business, Equilibrium provides robust,
future-ready solutions that reflect deep, rigorous and up-to-date investment research. This includes access to:
• highly rated in-house economists
• an experienced and centralised manager research team
• alternative investments (hedge funds, private debt and equity, and impact investing)
• specialist asset management skills (such as systematic strategies and fixed income)
• a global multi-manager investment team based in London
• a strategic partnership with one of the world’s largest asset managers (Robeco), and
• a centralised Research Hive that conducts ongoing research on investor behaviour and investment technology
trends.
Equilibrium boasts an impressive scale, managing over R34-billion. This scale offers clients access to lower
underlying fund fee classes, facilitating the delivery of diversified solutions that are typically more affordable than
those provided by many other DFMs, increasing the likelihood of clients reaching their investment goals.
People, purpose and partnerships
I recently learned about the “boomerang” effect within the business, where many employees rejoin
after departing. This reflects the strong culture of representation, inclusion and value. Equilibrium prioritises
human collaboration, building meaningful relationships with adviser partners to support clients in achieving their
financial dreams.
“Enabling your financial advice outcomes” is more than a slogan – it’s part of Equilibrium’s DNA, and I believe
this provides a competitive advantage in a DFM industry that often values profit over people. Equilibrium has a
different, human approach to collaboration and establishing long-term reciprocal relationships. We become your
practice’s investment management team and an extension of your practice, enabling you to do what really
matters – spending more time with your clients and building your business.

Scaling new heights
By Florbela Yates, Managing director, Equilibrium Investment Management
Since the strategic rebranding to Equilibrium in 2022, our business has undergone
a transformative journey. We have unified our local and offshore discretionary
fund management (DFM) capabilities, and today we are a fully-integrated global
team covering both listed and unlisted assets across the globe.
From R13-billion to R34-billion: AUM growth that tells a story
In 2021, Equilibrium managed R13-billion in assets. Fast forward to 2025, and that figure has soared to
R34 billion – a 161% increase in just four years. This growth reflects the trust advisers and investors place in
Equilibrium’s consistent performance, strategic clarity and human-centric approach.
Our success as a DFM stems from our ability to empower financial advisers with scalable, outcome-based
investment solutions. By becoming an extension of the adviser’s practice, Equilibrium fosters long-term
partnerships built on trust, shared goals and mutual growth.
Global integration: Bringing the world to South African investors
Momentum Global Investment Management (MGIM), our global investment partner based in London, was
established in 1998, managing assets for retail and institutional clients around the world. We have integrated our
offshore and local teams into one global team, leading to truly global-based thinking.
Our US-dollar multi-managed model portfolios (Equilibrium Global Cautious, Equilibrium Global Managed and
Equilibrium Global Growth) are each tailored to specific risk profiles and investment horizons. These hardcurrency
offshore solutions give clients access to world-class global asset managers and access to a diversified
global mix of asset classes, currencies and geographies.
The global integration between Equilibrium and MGIM has further enhanced our offering by:
• Infusing international expertise into local strategy.
• Driving product innovation through cross-border collaboration.
• Strengthening governance and compliance with global standards.
• Expanding our distribution support to adviser networks across regions.
• Expanded access to a wider range of investment opportunities, including alternative and unlisted investments.
Our global reach allows us to cover over 1 000 local funds and 20 000 offshore funds, ensuring that our
portfolios are truly diversified and globally competitive.
The rise of alternatives: Diversification with purpose
Equilibrium’s alternative investment platform has become a cornerstone of our growth. Since launching our
bespoke hedge fund model portfolios in 2020, we have seen growing demand as advisers seek alternative
return sources and new ways to diversify client portfolios. We manage two distinct hedge fund models: a Stable
Hedge Fund model, which targets cash +3% and is designed to act as a diversifier within portfolios; and a
Growth Hedge Fund model, which targets returns in line with local equities and serves as a return enhancer.
Looking ahead: Purpose, partnership, performance
Our journey is far from over. With a clear purpose – to create sustainable investment propositions aligned with
client objectives – we continue to evolve, innovate and lead.
Equilibrium offers a compelling proposition: enabling your advice outcomes. Contact us at info@eqinvest.co.za
to find out how we can assist you in getting better outcomes for your clients.

Enhancing your advice proposition
By Methula Sikakana, Business Development Manager
Our experience shows that aligning products with client needs is crucial for
building a successful advisory practice. When products are tailored to meet clients’
specific requirements, trust is strengthened and client loyalty is fostered.
Did you know the JSE accounts for only 0.4% of the global investment universe? This makes
it increasingly important to explore global investment opportunities in pursuit of portfolio
diversification and financial returns. Without effective investment strategies and trustworthy
partners with the right expertise, advisers may find it challenging to fully leverage the
potential of this vast landscape and assess the benefits of the numerous available funds.
Unlocking the best investment ideas globally
At Equilibrium, we partner with you to elevate your value proposition by providing access to local and global
investment opportunities. With over 17 years of experience and offices in Johannesburg, Pretoria, Cape Town,
London and Manchester, our team oversees over R34-billion in assets for retail investors in South Africa. Our
global reach grants access to over 1 000 local funds and 20 000 offshore funds, allowing us to fully optimise the
potential of a complex and interconnected investment landscape.
An advice-led business
As a discretionary fund manager (DFM) and multi-manager, we aim to bridge the gap between investments and
advice by constructing portfolios that align with the adviser’s advice processes. Through our collaboration, we
help clients achieve their investment goals by assisting them in understanding market trends, investment
opportunities and financial strategies, which can empower them to make informed decisions. Regular
communication helps build trust and ensures clients feel valued and understood.
We combine the best investment ideas to create resilient portfolios that withstand various market cycles. Most
importantly, we see ourselves as partners to advisers, enhancing the value of investment advice to clients. We aim
to build a closer relationship with advisers, develop a deep understanding of their advisory propositions, and tailor
our offerings to integrate seamlessly into their value propositions – generating maximum value for clients.
Providing clients with educational resources about market trends, investment opportunities and financial
strategies can empower them to make informed decisions. Regular communication helps build trust and ensures
clients feel valued and understood.
Our solutions can be implemented through a model portfolio or a fund-of-funds structure, depending on your
Financial Services Provider (FSP) licence (Category I or II) and preferences:
• With a Category II licence, we can make simultaneous changes across all investors within a specific portfolio.
• For a Category I licence, changes require signed instructions from each client; however, this process remains
simple and efficient with our digital solutions.
Additionally, Equilibrium helps increase your practice’s efficiency, supports succession planning and facilitates
practice mergers or higher valuation multiples at exit.
At Equilibrium, we bring improved balance into your financial advice practice. We don’t just manage investments –
we collaborate with you to deliver meaningful outcomes to your clients. Contact us today at info@eqinvest.co.za
to find out how we can assist you in achieving better outcomes for your clients.
info@eqinvest.co.za
Equilibrium Investment Management (Pty) Ltd (Equilibrium) (Reg. No. 2007/018275/07) is an authorised
financial services provider (FSP 32726) and part of Momentum Metropolitan Holdings Limited, rated B-BBEE level 1.