Blue Chip DFM Guide 2026 - A guide to Discretionary Fund Managers in South Africa

BLUE
CHIP
A GUIDE TO DISCRETIONARY FUND MANAGERS IN SOUTH AFRICA
2026

Free yourself to make your
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your time.
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only have a powerful investment proposition for your clients,
but we’ll also take care of research, analysis, reporting, and
compliance, giving you more time to guide them, coach them
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and global investment opportunities, competitive pricing
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impact yet, on your clients and in your practice.
Let’s partner for impact.

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2026 DFM GUIDE
CONTENTS
Introduction
6 How flexible and customisable should a DFM offering be?
As DFMs grow in scale and influence, the debate around flexibility and
customisation in their investment offerings intensifies.
10 What are all the costs that go into using a DFM?
As DFMs become embedded in financial planning practices, understanding
the full cost structure behind their use is increasingly important.
12 How important is investment performance when assessing a DFM?
A DFM’s performance is critical, but what exactly do we mean by a DFM’s
“performance”?
14 How important are the non-investment services of a DFM?
Increasingly, DFMs are acting as a business partner to financial planners, not
simply investment partners.
16 How does the DFM business model support the sustainability
of independent advice?
The rise of DFM-led communities presents both opportunities
and challenges.
18 AI – friend or foe of the DFM?
At present, it is most likely that the best models will be a combination of
humans and an AI team.
Contributing companies
IFC, 36 Investment Solutions by Alexforbes
3, 9 Glacier Invest
5 PortfolioMetrix
17 High Street Asset Management
20 Absa CIB
24 Analytics
26 Equilibrium Investment Management
28 Hollard Investment Managers
30, 32 Independent Investment Solutions
34 INN8 Invest
38 MitonOptimal South Africa
39, OBC Optimum Investment Group
40 Symmetry
42 Edify Fund Managers
Publisher: Chris Whales,
chris@gan.co.za
Introductory features:
Rob Macdonald,
rob@coachingwayofbeing.com
Editor: Ralph Staniforth
Account managers:
Gavin van der Merwe
Sam Oliver
Production: Ashley van Schalkwyk
Designer: Simon Lewis
Digital manager: Christoff Scholtz
Managing Director: Clive During,
clive@gan.co.za
Administration & accounts:
Charlene Steynberg, Kathy Wootton,
Sharon Angus-Leppan
Distribution and circulation
manager: Edward MacDonald
Printing: FA Print
PUBLISHED BY
Global Africa Network Media (Pty) Ltd
Company Registration No:
2004/004982/07
Directors: Clive During, Chris Whales
Physical address:
28 Main Road, Rondebosch 7700
Postal address:
PO Box 292, Newlands, 7701
Tel: +27 21 657 6200
Email: info@bluechipdigital.co.za
Website: www.bluechipdigital.co.za
No portion of this book may be reproduced without written
consent of the copyright owner. The opinions expressed are not
necessarily those of the 2026 BLUE CHIP DFM GUIDE, nor the
publisher, none of whom, together with the writers and parties
quoted, referenced or advertising in the publication, accept
liability of any nature arising out of, or in connection with, the
contents of this book. The publishers would like to express thanks
to those who support this publication by their submission of
articles and with their advertising. All rights reserved.
2
Reference
43 DFM listing

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The challenge
In today's current market environment, investors are faced with many options in terms of where to invest and decisions are impacted by
numerous factors:
Is AI as a thematic What type of
over-heated? Structured portfolios investment bridge should
I take up?
the gap between safety and
growth by combining
Is the risk
I need a
the capital protection that clients value
worth it? compelling return.
market participation
(via global equity exposure)
?
Should I invest To wrap or not
in a structured
to wrap?
portfolio that or traditional not? low-risk
options can’t match.
guarantee. In a declining interest rate the capital protection
Structured portfolios bridge
For clients that looking clients for value compelling yields,
that traditional low-risk
cycle, the our gap current between structured safety andportfolios
structured portfolios deliver measurable
the index looks for new AI opportunities
options can't match.
offer growth clients by the combining: opportunity to participate market performance participation potential while still offering on a monthly basis.
in attractive pay-offs should interest rates (via global defined equity protection exposure) levels.
decline further over the next few weeks.
News headlines
seem volatile.
Is it worth it?
Traditional vs Guaranteed Investments
The current interest rate cycle Potential for
Defined outcomes
enhanced returns
Defined protectionLeveraged Investments eg Hedge Fund
has created increasing
Structured pressure portfolios offer
to deliver
Direct Equity Investments
While money market funds are
30% downside protection offered on
transparency and control.
constrained by short-term interest both the V7 and AI V1 portfolios.
meaningful returns and rates, for
Partial Capital Protected
You know the exact conditions
structured portfolios can
eg Evolve structured portfolios
for the capital more protection risk and returns averse upfront investor, provide equity-linked growth
- unlike other more traditional products through tailored payoff structures. 100% Capital Diversification
Protected eg Guaranteed Capital Bond (GCB)
where a degree outcomes are of tied capital to interest protection
rates With the Liberty Structured Global
or fund manager performance. This clarity Performer V7 and AI V1 portfolios, Money Market Fund
makes client conversations easier.
positive index movement of as little
Your clients have access to
as 0.01% has the ability to deliver your geographies, Risk sectors and industries
clients with returns of 7.15%* p.a. for
The pay-offs of structured portfolios are
highly dependent on market variables
and The where opportunity
capital guarantees are offered,
the level of nominal interest rates are
key to determining the cost of the capital
individuals (6.46%* p.a. for companies)
for the V7 portfolio and 12.50%* p.a. for
individuals (11.38%* p.a. for companies).
that may not be available locally.
Furthermore, with the introduction of
the new Liberty Structured Global
Performer AI V1 portfolio where the
underlying index rebalances on a monthly
basis, the index offers clients dynamism as
The bottom line
Money Money market market funds funds and and GCBs GCBs preserve preserve capital capital — but structured – but structured portfolios portfolios also offer also enhanced offer enhanced yield potential. yield This potential. allows you This to allows you to position
position your clients your clients for meaningful for meaningful participation participation in market in market growth growth with with an an added layer of protection.
Finally, while there are are many many ways ways to access to access structured structured portfolios, portfolios, why choose why one choose offered one via offered an endowment? via an endowment?
It It gives you access to to the the benefits of of the the best best of of both worlds -– the the benefits of of a a structured portfolio and an
endowment via the
Evolve Investment Plan (including Sinking Fund):
endowment via the Evolve Investment Plan (including Sinking Fund):
Protection: 30% downside
protection offered on both
structured portfolios
Invest with certainty and
peace of mind: Know clients’
possible future investment
outcomes, today
Estate Planning: Nominate
up to 6 beneficiaries
Tax efficient way of investing
**Allocation enhancements
for investing more
*The returns mentioned above are subject to market conditions at the Strike Date. Liberty will confirm the final return % one week after the Strike Date. The returns are net of tax and fees and are denominated in Rands.
**Allocation Enhancements *The returns mentioned of 1% for above R1 are million subject and to market 2% for conditions R3 million. at the Strike Credit Date. Risk: Liberty The will returns confirm of the the final structured return % one portfolio week after are the determined Strike Date. The with returns reference are net of to tax and instrument/s fees and are denominated issued by in one Rands. or more banks or entities affiliate with a bank
(the ‘issuer(s)’ and **Allocation are dependent Enhancements on of the 1% issuer(s) for R1 million performing and 2% R3 its/their million. obligations in terms of the instrument(s). Clients are therefore exposed to the credit risk of the issuer(s) as there is a risk of partial or total loss of capital in the case
of certain risks materialising, Credit Risk: The returns including of the bankruptcy structured portfolio or default are determined of payment with reference obligations to an instrument/s by the issuer(s). issued by This one or means more banks that, or in entities the event affiliate of with the a bank issuer(s) (the ‘issuer(s)’ not being and are able dependent to honour the payments issuer(s) performing due to Liberty, Liberty will not be liable to make
payment to clients its/their in terms obligations of this in terms investment. of the instrument(s). On the date Clients that are therefore it issues exposed the relevant to the credit instrument(s), risk of the issuer(s) Liberty as there will is ensure a risk of that partial the or total issuer(s) loss of capital (or Guarantor(s) in the case of certain of the risks issuer(s) materialising, has a including credit rating bankruptcy by an or established rating agency of at least BB+
on the South African default national of payment scale obligations if it is by a the South issuer(s). African This means issuer that, and in at the least event A of if the it issuer(s) an international not being able to issuer. honour To payments the extent due to that Liberty, the Liberty issuer will of not the be instrument(s) liable to make payment partially to clients performs in terms its of payment this investment. obligations or any one of the issuers fails to
perform its payment On the obligations, date that it issues clients the relevant will be instrument(s), entitled to Liberty a pro-rata will ensure payment that the calculated issuer(s) (or Guarantor(s) with reference of the issuer(s) to the has partial a credit payments rating by an received established by rating Liberty. agency Disclaimer of at least BB+ The on the summary South African information national scale contained if it in this document does not constitute
is a South African issuer and at least A if it is an international issuer. To the extent that the issuer of the instrument(s) partially performs its payment obligations or any one of the issuers fails to perform its payment obligations,
advice by Liberty The material has been created for distribution to intermediaries only and is not for distribution to the public. Any legal, technical, or product information contained in this document is subject to change from time to
clients will be entitled to a pro-rata payment calculated with reference to the partial payments received by Liberty.
time. If there are any discrepancies between the document and the contractual terms and conditions, the contractual terms and conditions will prevail. Past performance cannot be relied on as an indication of future performance.
Disclaimer
Investment performance will depend on the growth in the underlying assets, which will be influenced by prevailing market conditions. Any recommendations made by a financial adviser or broker must take into consideration your
The summary information contained in this document does not constitute advice by Liberty The material has been created for distribution to intermediaries only and is not for distribution to the public. Any legal, technical, or
specific needs and product unique information circumstances. contained in this Liberty document Group is subject Limited to change is the from Licensed time to Life time. Insurer If there are of any the discrepancies Evolve Investment between the Plan document and Evolve and the Investment contractual terms Plan and (Sinking conditions, Fund), the contractual Authorised terms Financial and conditions Services Provider (no. 2409) and is part of the
Standard Bank Group. will prevail. Terms Past performance and Conditions, cannot be Risks relied and on as Limitations an indication apply. of future performance. Investment performance will depend on the growth in the underlying assets, which will be influenced by prevailing market conditions.
Any recommendations made by a financial adviser or broker must take into consideration your specific needs and unique circumstances.
Liberty Group Limited is the Licensed Life Insurer of the Evolve Investment Plan and Evolve Investment Plan (Sinking Fund), Authorised Financial Services Provider (no. 2409) and is part of the Standard Bank Group.
Terms and Conditions, Risks and Limitations apply.
Global growth exposure
SP 2026-cover.indd 2-3 2026/02/11 15:41
2026 DFM GUIDE - PUBLISHER'S MESSAGE
2026 Blue Chip
DFM Guide
W
elcome to the second edition of the Blue Chip DFM
Guide. This 2026 edition of this annual publication
follows the launch of the DFM Guide in 2025, a
special supplement designed to provide useful
information on Discretionary Fund Managers to the South African
financial planning community.
The editorial content, written by Rob Macdonald, an independent
consultant, author and CFP® Professional, is designed to build on
the introductory content published in the 2025 edition which can
be accessed via the QR code link provided (below right). The 2026
DFM Guide also features contributions from a number of South
African DFMs in the form of company profiles and interviews, and
is followed by a listing of 33 DFMs.
Members of the Financial Planning Institute of Southern Africa
(FPI) can earn one verifiable Continuing Professional Development
(CPD) point by completing an online assessment on the FPI member
portal, based on the introductory articles in the 2026 DFM Guide.
The Blue Chip DFM Guide follows the successful format of Blue
Chip’s other annual guides, the Blue Chip Hedge Fund Guide and the
Blue Chip Structured Products Guide. The guides are produced by
Global Africa Network Media, the publisher of Blue Chip Journal.
Blue Chip is the official publication of the FPI, published quarterly in
February, May, August and November, and distributed in print and
digital format to the full and up-to-date member base of the FPI,
reaching over 5 000 CFP® Professionals as well as other categories
of FPI membership.
Why structured portfolios deserve a
place in your clients' financial plan.
The opportunity
STRUCTURED
PRODUCTS GUIDE
A GUIDE TO STRUCTURED PRODUCTS IN SOUTH AFRICA
BLUE
CHIP
A GUIDE TO DISCRETIONARY FUND MANAGERS IN SOUTH AFRICA
BLUE
CHIP
2025
2025 Blue Chip DFM Guide
A GUIDE TO DISCRETIONARY FUND MANAGERS IN SOUTH AFRICA
The 2025 edition of the DFM Guide can be
found at www.bluechipdigital.co.za/
investment-news-dfm-guide or via
the QR code (below).
The topics covered in this first edition
are as follows:
What is a DFM actually?
Providing well-managed and defendable
investment solutions.
Why should a financial planner use a DFM?
Performance, time saving and compliance
are among the benefits.
Choosing the right DFM.
Due diligence and ensuring the right fit
are key.
What are the alternatives to using a DFM?
Alternatives are available, but be aware
of drawbacks.
Should a financial planner use more than
one DFM?
Pros and cons of using more than one DFM.
How important is investment performance
for a DFM?
Performance is key, but the clients’ overall
goals are also important.
Who should pay the DFM fees?
Where the cost should sit is an
ongoing debate.
+
Expected Return
The bottom line
2026
4
Digital editions of Blue Chip Journal, the Blue Chip Hedge Fund Guide,
the Blue Chip Structured Products Guide and the Blue Chip DFM Guide
can be found at www.bluechipdigital.co.za

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top financial advisers.
With PortfolioMetrix as their investment partner,
advisers are free from the distractions that risk holding
them back, giving them the space to focus on the
conversations that matter.
The future of investment management. Today.
portfoliometrix.com
PortfolioMetrix Asset Management SA (Pty) Ltd is an Authorised Financial Services Provider, FSP number: 42383

2026 DFM GUIDE - INTRODUCTION
How flexible and customisable
should a DFM offering be?
As DFMs grow in scale and influence, the debate around flexibility
and customisation in their investment offerings intensifies.
The growth of DFMs in South Africa over the past 10
years has led to the evolution of a range of DFMs from
boutique to larger DFMs with assets well in excess of
R50-billion. This growth means DFMs are now able to
direct the flow of significant assets to and from asset managers,
and have an increased influence on investment mandates and,
very importantly, pricing.
Before the emergence of DFMs, most financial planners were
effectively “fund pickers”, either choosing single or multi-managed
funds for their clients and putting portfolios of these funds
together in ways that they deemed appropriate for clients. There
are still financial planners who operate based on this model, which
has benefits. Firstly, the financial planner can justify their value
to clients by saying that one of their roles is “investment expert”
which justifies an ongoing asset-based fee for advice. Secondly, the
financial planner can argue that they are able to provide genuine
bespoke advice to clients using this approach.
The emergence of DFMs presents financial planners with a
challenge: how do they retain a unique value proposition while
also wanting to enjoy the benefits of scale that DFMs offer?
Financial planners own the individual client and effectively
act as a “distribution channel” for DFMs. Yet if financial planners
compromise both their independence and value proposition in the
process of using a DFM, it’s a case of the tail wagging the dog. The
client comes to the financial planner for advice and solutions, not
the DFM. This begs the question, how flexible and customisable
should a DFM offering be? This question talks to the power
dynamic between DFMs and financial planners. Who’s the boss? In
considering this dilemma, we consider three key questions which
help us look at whether or not the tail should be wagging the dog.
A. Should financial planners be able to influence the DFM
investment offer?
Most DFMs will position themselves as partners of financial
planners, offering a service that was historically internal to a
financial planning business. In a sense it’s no different to a business
outsourcing their payroll, accounting or technology functions. The
question is, should a DFM service be regarded as an outsourced
function where the financial planner is a passive consumer of a
DFM’s products, or one in which the financial planner and DFM
co-build and share the responsibility of the model portfolios that
are developed?
The reality is that both models exist. Some DFMs see themselves
as investment managers who are given a mandate by the financial

2026 DFM GUIDE - INTRODUCTION
planner and their clients to deliver agreed-upon investment
outcomes. The financial planner in this model has no influence
over the decision-making in the model portfolios and relies totally
on the DFM’s investment expertise to make the appropriate fund
choices and asset allocation decisions. The financial planner is kept
in the loop on any changes that are made in the portfolios, but they
have no influence over the decisions. “Take it or leave it” might be
a way to describe this approach.
At the other end of the spectrum is the “Joint Investment
Committee” (JIC) model, which involves the DFM and the financial
planner forming an investment committee made up of members
from both the DFM and the financial planning business. At the
initial stage of the relationship, this committee agrees on the range
of model portfolios that will be offered to the financial planner’s
clients and the financial planner will be involved in the decisions
around funds to be included in the portfolios as well as the asset
allocation for each portfolio.
Once the portfolios are up and running, changes to the
portfolios are made through joint decision-making, whether this
be asset allocation or fund changes. Ultimate responsibility for the
decisions depends on the licence status of the financial planning
business. A Cat I financial planning business has to defer to the
final decision being made by the DFM, no matter how much input
they have given.
If the financial planner has a Cat II licence, then the DFM
cannot make decisions autonomously and requires that the
financial planning business has an appropriate level of investment
expertise internally not only to be able to participate in the
process effectively, but also take responsibility for any decisions
that are made. Whichever model a financial planning business opts
for, there are certain non-negotiables to be aware of:
1. The financial planning business has a clear investment
philosophy which its clients have bought into and the
investment process, whether completely outsourced or
co-created and co-managed, aligns with this philosophy.
2. In the JIC model, where a financial planner with a Cat I licence
may have influence over the investment decision-making, the
key benefit of having a DFM remains that the DFM (under its
Category II licence) must retain final discretion. This ensures
that one of the key benefits of having a DFM is enacted,
namely: enabling decisions to be implemented across all client
portfolios at the same time without having to consult clients.
It also means that the DFM protects the planner from the legal
consequences of “failed” investment decisions.
3. Whatever route a financial planner decides to go, it should
be rooted in their clients’ needs – not a desire to “play fund
manager”. In the same way that it may be better for a client that
a financial planner gets a lawyer to draw up the client’s will, so
FEATURES OF CUSTOMISED VS PRESCRIPTIVE DFM OFFERINGS
FEATURE
HIGHLY CUSTOMISED
(PLANNER-INFLUENCED)
PRESCRIPTIVE
(DFM-LED)
Value
Proposition
Unique to the practice
"Bespoke" feel
Institutional-grade
High conviction
Risk
Potential for "style drift"
Influence of planner bias
Lack of investment conviction
"One-size-fits-all"
May ignore niche needs
Admin
Potentially higher demands
Often requires more oversight
Usually lower demands
Highly automated and scalable
Communication
Potentially more complex
in attempt to personalise
Usually simpler with limited number
of portfolios to report on
Compliance
More complex
Usually shared responsibility
Clearer
DFM carries the bulk of the risk
7

2026 DFM GUIDE - INTRODUCTION
too, the approach adopted in working with a DFM should be
made bearing in mind what is better for the client.
4. Whether or not the financial planner has influence over the
DFM’s investment offer, that offer needs to align with the
needs of the client.
5. The approach a financial planner takes must align with their
value proposition to clients. Are they clear whether they want
to sit on the client’s side of the table or the DFM’s side? Or do
they feel that they can do both?
B. Is it better for DFMs to be prescriptive and steadfast in
their investment offer?
Before using a DFM, most financial planners were making investment
decisions for their clients. So it is understandable that many would
want to continue to have some involvement in the investment
process. Yet there is an argument that the more prescriptive and
steadfast a DFM is in their investment offer, the better. By being
“steadfast” and “prescriptive”, a DFM ensures that there is not only
a consistency of process, but a consistency of outcome. This aligns
with TCF (Treating Customers Fairly) by ensuring that all clients
with similar investment mandates receive the same experience
and performance. This ensures that there is reduced performance
dispersion within a financial planner’s client base.
Some financial planners will argue against being prescribed to
by a DFM, suggesting that this impacts their ability to “personalise”
their investment offer to clients. But this does raise the dilemma
of what is most important for clients, what is most aligned with
TCF, consistency of outcome or personalisation? The reality of
investing is that there are limited outcomes that model portfolios
can achieve consistently and sustainably over time.
It is possible that DFMs can meet personalisation needs for
clients through prescriptive offerings. For example, all clients who
are drawing down income in retirement could have a portfolio
set up for this purpose. But whatever the level of income being
drawn, it is likely that only one portfolio is needed to meet this
need. Similarly, clients who are wanting a high-growth, highequity
portfolio likely only need one portfolio. If one considers
that the highest returning local asset class (South African equities)
has delivered a return of inflation plus 7% over the long term, it
means that a model portfolio that is in any way diversified beyond
SA equities is likely to deliver a lower return over the long term.
This suggests that “personalisation” ultimately is only going
to make a difference to the inputs of the model portfolio,
fund choices and asset allocation, rather than to the outcomes.
The benefits of a DFM being prescriptive and steadfast in their
offer include:
1. Enhanced scalability of the DFM’s model portfolios as all
client assets are invested into a limited set of portfolios. This
boosts the DFM’s ability to negotiate and influence the asset
managers they use in their portfolios. It also simplifies the
DFM’s communication with the financial planner and their
clients. The benefit to the financial planner is that they are not
distracted by trying to communicate and manage across too
many “personalised” client portfolios. Arguably, a prescriptive
DFM model allows the planner to focus on where they really
add value, namely in their engagements with clients, rather
than on investment decision-making and at times investment
administration. The greater the variety of model portfolios, the
greater the personalisation of client solutions, the greater the
likelihood of an increased administrative burden.
2. There is a risk that a DFM that is too flexible in their offering
can lose its conviction about their “house view” and possibly be
not clear on what their investment “conviction” really is. A key
benefit a DFM can offer a financial planner is having conviction,
with a clear investment philosophy and process that they
stick to. There is a risk that too much personalisation hampers
their ability to do this.
3. Consideration of whether being steadfast and prescriptive
really does hamper the ability to offer personalised portfolios.
Some DFMs will argue they do both and the reality is that with
the integration of technology into the investment process it
is possible to do both. There are DFMs who are able to offer
bespoke portfolios for each financial planning business
without compromising their philosophy and approach, and
they do this primarily through the effective use of technology.
C. How realistic is it for South African DFMs to offer both
offshore and local solutions?
One consideration for financial planning businesses is whether
they use one or more DFM. In order to get the benefits of scale and
efficiency it would make most sense to only work with one DFM. But
in the South African context, the dilemma of how to handle offshore
exposure and solutions arises. To gain the benefits of diversification,
there is unlikely to be much debate about the importance of offshore
exposure in client portfolios. But there is complexity to this.
In retirement funds, Regulation 28 constrains the extent of
offshore exposure, while with discretionary funds there is the
potential for full exposure, whether invested directly offshore or
in rand-based feeder funds. A local DFM can integrate a rand-based
feeder fund into a “local” model portfolio, but if investing money
directly offshore then the need arises for currency conversion into
offshore model portfolios that are domiciled in another jurisdiction.
Apart from the administrative complexity that this introduces, it
begs the question, can a local DFM effectively manage an offshore
domiciled model portfolio?
A DFM would argue that this depends on the nature of the
portfolio. An equity-only offshore model portfolio made up of
index funds is likely to be easier to manage from South Africa
than a balanced model portfolio in which active managers are
appointed across different asset classes. DFMs that are part of
larger institutions often have an association or partnership with
a global research capability which takes all global investment
decisions, which also feed into the offshore exposure within a
local model portfolio. There are some independent DFMs with a
presence offshore, in which case their international team is likely
to make the global decisions on behalf of the local team.
For local-only DFMs, the question financial planners must ask
is, do they have the capability to manage an offshore model, or
the offshore exposure in a local model, from South Africa? This
question is not only relevant at the level of fund selection, but
also asset allocation. Given the complexity involved in looking
after client assets in a global context, financial planners whose
DFM does not have an offshore presence or partner, may need to
consider using different DFMs for local and offshore assets. This
decision would need to be balanced against the scale, operational
and efficiency benefits of using a single DFM.
8

What to consider
when choosing the
right Discretionary
Fund Manager (DFM)
Reclaiming
the heart
of advice
Why it matters: A DFM lifts the portfolio management burden,
freeing you to focus on client relationships.
• More time for holistic advice (wellbeing, legacy, goals)
• Expand into new client segments
• Scale advice with digital and hybrid models
• Evolve as a business owner
Silencing
the
compliance
noise
Why it matters: Regulations in SA are complex, time-consuming,
and risky.
• DFM ensures Regulation 28 adherence
• Provides auditable rebalancing trails
• Handles best execution and monitoring
• Turns compliance into a managed function
Choosing
your strategic
ally
Due diligence checklist before partnering with a DFM:
• Investment philosophy alignment (active, passive, blended)
• Fee transparency (management and underlying costs)
• Operational excellence (reporting and processes)
• Local expertise, global perspective
• Customisation depth (client-specific exclusions)
Redefining
client
perception
Why it matters: Clients value credibility and strategy over product pushing.
• Adviser becomes a wealth strategist
• Offers world-class strategies once reserved for HNWIs
• Enhances trust and credibility
• Positions you as a lifelong partner
Choice in
portfolio
construction
Why it matters: Every client is unique and your DFM should give you
options, not limitations.
• Active, passive, or blended strategies tailored to client needs
• Flexibility to customise portfolios (exclusions, ESG, ethical preferences)
• Choice of local and global exposure aligned with SA realities
• Empowerment to match portfolios with client goals and risk appetite
The
scalability
imperative
Why it matters: In-house portfolio management quickly becomes costly
and unsustainable.
• Converts fixed costs to variable (AUM-based)
• Immediate access to global research and execution
• Mitigates key staff turnover risks
• Unlocks sustainable business growth
The right DFM partnership transforms your role from a fund selector to a trusted wealth visionary.
In today’s complex environment, partnering with a DFM isn’t optional. It’s essential to sustainable growth.
Glacier Financial Solutions (Pty) Ltd is a Licensed Discretionary Financial Services Provider, trading as Glacier Invest FSP 770.
Sanlam Multi Manager International (Pty) Ltd FSP 845 is a Licensed Discretionary Financial Services Provider, acting as a Juristic Representative under Glacier Invest.
As Juristic Representative of Glacier Invest, Sanlam Multi Manager International (Pty) Ltd manages the retail investment solutions offered by Glacier Invest.

2026 DFM GUIDE - INTRODUCTION
What are all the costs that
go into using a DFM?
As DFMs become embedded in financial planning practices, understanding
the full cost structure behind their use is increasingly important.
S
ome criticise financial planners for using a DFM
because they argue that the financial planner is
outsourcing a primary function of financial planning.
This critique can be easily countered by using the medical
analogy of a general practitioner who, like a financial planner, has
the role of diagnosing the overall health of a client, determining
what specific needs they have and then accessing specialists to
address those needs. The financial planner is there to guide the
client on their lifetime financial journey and to oversee the use of
specialists as and when needed such as DFMs, insurance brokers,
medical aid specialists, accountants, fiduciary and tax practitioners.
However, one critique that can be more difficult to counter is
that of cost, particularly if the use of the DFM leads to additional
costs to the client. There is the debate about whether the client
should actually be paying for the DFM, as opposed to the financial
planner paying the DFM out of their fee, in the way that they might
pay another service provider that they use. Either way, as Warren
Buffett says, “price is only an issue in the absence of value”, so it is
important that the benefit to the client is clear if they are paying
more for the service. There is no doubt that using a DFM is of
significant benefit to a financial planner.
When it comes to investments, their operational, compliance,
communication and administrative processes should be simpler
and more efficient. The financial planner will then have time freed
up that otherwise would have been spent on researching and
selecting investments, thus enabling them to add more value in
other aspects of financial planning, particularly time spent engaging
with their clients. Naturally if the financial planner is experiencing
these benefits, there should be a knock-on benefit to the client and,
perhaps most importantly, there will be greater consistency in the
process and outcome of the client’s investments. Given the direct
impact that costs can have on a client’s investments, it is important
to consider key aspects of cost when a financial planner uses a DFM.
A. Do clients pay more or less if a financial planner uses a DFM?
There is no doubt that using a DFM adds a new fee layer to a client’s
costs. However, this does not necessarily mean that the client’s overall
costs are higher; in fact they are often neutral or even lower. A DFM
typically charges between 0.15% and 0.35% on assets invested in a
model portfolio, but a key value add of a DFM is their ability to switch
clients from retail fee classes to institutional fee classes. This switch
can materially lower the cost of funds that a financial planner may
LIKELY COST IMPLICATIONS OF TRADITIONAL PLANNING APPROACH VS USING A DFM
COMPONENT
TRADITIONAL (CAT I PLANNER)
DFM-LED (CAT II OUTSOURCED)
Asset Manager Fee
Retail Class (higher)
Institutional Class (lower)
DFM Service Fee
0.00%
0.15% – 0.35%
Platform (LISP)
Standard Tier
Bulk/Negotiated Tier
Total TIC Typically higher/equal Typically equal/lower
Value Received
Static fund selection
Planner’s time used for fund
research and selection
Dynamic rebalancing and research
Planner’s time freed up from
fund research and selection
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2026 DFM GUIDE - INTRODUCTION
previously have invested into on behalf of their clients. In some cases
the fee reduction could be as much as half.
Another way that DFMs that have their own funds can reduce
investment fees is by offsetting a portion of the DFM fee when
using the DFM’s own funds. The DFM obviously has to balance this
cost saving with the risk of a perceived or real conflict of interest
by including one or more of their own funds in a model portfolio.
Given that DFMs are dedicated investment specialists and in
effect are “active” managers of model portfolios, they have tended
to be more open to using passive funds in model portfolios than
financial planners may historically have been in the portfolios
they previously “managed” for clients. Hence DFMs are also able
to reduce costs by including low-cost passive funds in model
portfolios. By blending active and passive managers in a model
portfolio, DFMs are able to offer financial planners an “actively”
managed portfolio but at much lower cost.
Arguably the use of DFMs provides clients with the opportunity
to get the best of both worlds. They continue to get their financial
advice at the same advice fee – but ideally getting more attention
and better service from the financial planner, while their investment
fee is lower thanks to the DFM’s ability to use their investment
expertise and scale to reduce the cost of investment management.
So while a DFM adds a new fee layer, the net result for the client can
at the very least be neutral or even lower.
B. What sort of scale benefits do (or should) DFMs offer?
Scale is probably the primary lever a DFM uses to justify its existence
beyond just “picking funds” or helping financial planners improve
the operational efficiency and compliance obligations of their
investment process. Scale manifests itself in various forms:
• Aggregated buying power: A DFM with R10-billion in assets
has far more negotiating leverage with a tier-1 asset manager
than a single financial planning practice with R100-million. This
leverage is not only with respect to fund price negotiations but
can also lead to access to exclusive mandates.
• Operational alpha: Use of a Category II licence allows for “bulk
switching”. This means all clients are moved simultaneously at the
touch of a button, ensuring no client is disadvantaged by administrative
delays – a key TCF (Treating Customers Fairly) benefit.
• Reduced “drag”: DFMs can optimise the use of cash and passive
“building blocks” (ETFs/index trackers) within a portfolio to
lower the weighted average cost without sacrificing the tactical
house view.
• Investment research: Given their asset buying power, DFMs
have far more access to asset managers to conduct research
than financial planners who are managing their clients’ money.
This access means that those DFMs that value the importance of
qualitative fund manager research are able to do this to a depth
which they determine, rather than relying on the asset manager’s
discretion about information that they deem important.
One disadvantage of the scale that DFMs have achieved is that
the relationship between asset managers and financial planners has
been at least disrupted, and at worst, disintermediated. DFMs have
overhauled the investment landscape to the extent that they are
now seen as an important distribution channel for asset managers.
Naturally the bigger the DFM, the more likely they will be feted by
asset managers. This has forced asset managers to rethink their
approach to servicing financial planners.
C. How transparent are all the costs in the DFM value chain?
Transparency is no longer optional and is a regulatory requirement
under ASISA standards.
In 2016 ASISA introduced the Effective Annual Cost (EAC)
Standard as the “gold standard” for cost disclosure. It breaks down
the costs of an investment into four clear buckets:
1. Investment management – reflects all costs and charges for
underlying investments, including the annual investment
management fee, any initial charges, ongoing charges like
performance fees and transaction costs (such as for trading).
Here the DFM fee should be reflected as a separate fee from
the underlying investment manager fees.
2. Advice – reflects the fee that the financial planner and client
have agreed, for initial and/or ongoing advice.
3. Administration – reflects all costs an investor incurs related to
the administration of the product by the product provider – in
the case of model portfolios managed by a DFM, this fee is often
simply the LISP fee.
4. Other – includes any other costs, such as termination charges,
penalties, costs of guarantees, smoothing or risk benefit costs,
loyalty bonuses, etc. It is meant as a “catch-all” for any remaining
costs and each of these costs must be explained in notes
accompanying the EAC table.
Why transparency is such an issue
The evolution of DFMs has led to the risk of “double dipping”
– a practice of taking two fees on the same asset, which often
happens without clients being aware of it, never mind consenting
to it. “Double dipping” can happen in various ways – the three key
methods are outlined below:
• Level 1 – the fund fee: When a DFM uses its own proprietary funds
within a model portfolio it creates a potential conflict of interest
– it is effectively earning two fees on the same asset: a DFM fee
and a fund fee. Ideally a transparent DFM would either rebate the
DFM service fee or ensure the underlying fund fee is discounted
to avoid charging the client twice for the same expertise.
• Level 2 – the DFM fee: There is potentially a second level of
double dipping where a financial planner benefits from the
DFM fee. Some DFMs incentivise financial planners by sharing
a portion of the DFM fee with the financial planner. While this
may be justified because the financial planner potentially does
some investment work – be it sitting on a Joint Investment
Committee or preparing investment communications to their
clients – being transparent would mean disclosing this fee or
“rebate” to the client.
• Level 3 – model portfolio fee: Some financial planning businesses
who use DFMs may have their own Cat II licence and “own” the
funds or model portfolios in which clients invest. With this level
of ownership comes an asset-based fee, some or all of which
may be rebated to the financial planner from the DFM fee or
the investment management fee. Again, transparency means
disclosing this arrangement to the client.
Whatever the arrangement that a financial planner has with a
DFM, an approach that is aligned with TCF would ensure that the
“look-through” principle applies and that on the fund fact sheet of
every model portfolio managed by the DFM, all four levels of the
investment EAC are disclosed, including any rebate arrangement
with the financial planner.
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2026 DFM GUIDE - INTRODUCTION
How important is investment
performance when
assessing a DFM?
A DFM’s performance is critical, but what exactly
do we mean by a DFM’s “performance”?
The issue of investment performance is a vexed one when
it comes to DFMs. By taking over the responsibility of
managing client investments on a discretionary basis,
DFMs are hanging their hat on the hook of investment
performance. This “frees up” financial planners from direct
responsibility for their clients’ investments and enables them to pay
more attention to their clients’ behaviour around their investments,
arguably a more difficult and more important task.
Much research shows that ultimately the returns that clients gain
from their investments has less to do with how and where the money
is invested and more to do with their behaviour – left unchecked,
many clients buy and sell investments at the wrong time, influenced
by various factors ranging from fear to FOMO and a little bit of greed
thrown in for good measure. But when we consider how to assess
a DFM’s performance, it is important to clarify what we mean by
performance. A mistake that most investors and unfortunately many
financial planners make is the belief that investing is a competition.
This belief is fed by the financial media with the publication of
performance tables of asset managers and the various awards that
asset managers can “win” for the performance.
The supposedly competitive nature of investing is exacerbated
by social media where commentary on “investments” and their
performance, by experts and non-experts alike, is a daily occurrence,
if not an hourly one. One of the benefits of using a DFM is that
clients and financial planners are distanced from the noise around
the latest high-returning investment, be it gold, silver or crypto; as
well as distanced from the incessant performance beauty parade of
asset managers which invariably influences both financial planners
and their clients to make the wrong decision at the wrong time.
Despite this “distancing” serving as an important role for DFMs,
there are many investors, financial planners and commentators
in the media who believe that DFMs should also be included in
performance tables, just like asset managers.
The problem with this is twofold. Firstly, it ignores all the other
benefits that financial planners and their clients derive from using a
DFM such as operational, administrative and compliance efficiencies
for financial planners; and very clearly defined and implemented
investment strategies for clients, with all the attenuated benefits of
expertise and scale that comes with a DFM service.
Secondly, the desire to compare the performance of different
DFMs presumes that there are like-for-like comparisons that can be
made. The reality is that most DFMs manage bespoke portfolios as
well as standard portfolios. It is very difficult to compare bespoke
portfolios across DFMs because mandates may be very different,
meaning asset allocations and fund selections will vary widely. With
respect to standard portfolios, even here there will be variation
between DFMs as to what we mean by “standard”.
Some DFMs may have “outcome” focused portfolios, eg targeting
particular returns above inflation; while other DFMs may have
investment “input” focused portfolios, eg committing to a certain
percentage allocation per asset class – some portfolios may be deemed
“high-equity” because they have committed to a minimum equity
exposure of 70%, while others may be “low-equity” with a maximum
of 30% equity exposure. The difficulty in comparing DFM performance
does not mean that investment performance is not a critical aspect of
a DFM’s value proposition. The question is, what performance should
a financial planner want to assess? Or to put it another way, what
investment outcomes should a financial planner focus on?
Given that investing is not a competition, and is very much a
means to an end, enabling clients to achieve goals for their life
using their money, the only performance worth worrying about
is whether the DFM is achieving the targeted outcomes for each
model portfolio – standard or bespoke – within the parameters of
the investment mandate. For example, if a model portfolio aims
to achieve an inflation-plus-3 return over rolling three years, then
those are the two key performance parameters that need to be
assessed. Because any client invested in such a portfolio will have
had their need or needs assessed by the financial planner to deem
such a portfolio appropriate.
The real power of the DFM proposition is that financial planners
are freed up to thoroughly assess a client’s needs and goals, with
a ready-made solution (the relevant model portfolio) on hand to
serve as the means to achieving those goals. With client outcomes
as the primary investment metric to assess, financial planners
can also conduct ongoing due diligence of DFMs to ensure that
the investment outcomes of the model portfolios are aligned
with the components of the model portfolio. In order to conduct
this due diligence, financial planners may wish to consider the
following questions:
A. How can you validate the performance of a DFM?
Whether you are considering using a DFM, or already do so,
validating the performance of the DFM periodically is an important
part of the due diligence process. But validating a DFM’s track
record can be difficult because DFM models are spread across
different platforms (LISPs) with potentially different cost impacts
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2026 DFM GUIDE - INTRODUCTION
and will have different “entry points” for different clients. But
financial planners can assess the constituent parts of a model
portfolio – each component CIS fund’s track record can be
reviewed and these can be aggregated to determine to what
extent a certain model portfolio’s performance is in line with the
expectations based on the performance of the underlying funds.
Another way to validate performance is where a DFM has
unit trusts that it manages and which mirror its model portfolios,
planners can use the fund fact sheets of these unit trusts as a proxy
for the portfolio’s performance and the DFM’s investment skill.
Financial planners could also get independent third-party
verification of DFM performance. This ensures the returns shown
in marketing “pitches” are mathematically accurate and net of all
underlying manager fees.
B. To what extent should financial planners worry about riskadjusted
returns vs absolute and relative returns?
Given that investing is not a competition, in a financial planning
context, “beating the market” or “beating other investments”
(relative return) is less important than “meeting the goal” (absolute
return) without unnecessary volatility (risk-adjusted return).
Volatility may be necessary in some portfolios which are
targeting higher returns, but financial planners may wish to assess
the volatility of portfolios used in a living annuity for example,
where clients are taking a regular income from the portfolio
and big market or performance “drawdowns” could impact the
sustainability of the portfolio.
To ensure alignment between a client’s financial plan and
their investments, ideally model portfolios will target “absolute
returns” such as a CPI+ targets over rolling periods, which enables
the financial planning and the investments to be in sync.
While the performance of the underlying component funds
of a model portfolio may be assessed on a relative basis –
whether to their asset class benchmark or peers – the relative
performance of a DFM should not be the focus for a financial
planner who prioritises financial planning to achieve identified
client outcomes through the use of model portfolios.
C. How much attribution analysis is done to assess the DFM’s
impact on performance vs the underlying fund managers?
Attribution analysis can be likened to the “MRI” of investment
performance – it shows exactly where the returns in a portfolio
come from. It is a critical exercise that serves as part of a financial
planner’s ongoing due diligence process.
There are probably three key areas in which a DFM can add
value to a portfolio and that a financial planner should consider
as part of an attribution analysis:
Asset allocation – Was value added by tactical asset allocation
(TAA) decisions the DFM made? Ideally financial planners should
ask for at least a quarterly report showing whether their TAA
decisions versus the portfolio’s strategic asset allocation (SAA)
added or detracted value during the quarter. If, for example, the
underlying fund managers are doing all the heavy lifting and the
DFM’s asset allocation is detracting from performance, the DFM
fee is harder to justify.
Fund selection – To what extent did the choice of funds in the
portfolio add or detract value over the period? In order to assess
underlying fund performance, it is appropriate to use relative
benchmarks, whether they are asset class returns or peer returns.
Cash-flow management – To what extent did the DFM’s
management of inflows and outflows from investors impede or
enhance the performance of the portfolio?
A robust attribution analysis process can help financial planners
assess where the DFM is adding any “alpha” to the portfolios, but
most importantly it is a way of assessing the process that DFM
follows in selecting funds, doing asset allocation and managing
the flow of money.
This focus on the DFM’s process is critical, as not only is process a
key predictor of future performance, but it is also a means to assess
whether the DFM actually does what it says it does.
PERFORMANCE METRICS FOR PLANNERS TO CONSIDER WHEN ASSESSING A DFM
METRIC
Max drawdown
Standard deviation
Active share*
Information ratio **
WHY IT MATTERS
Measures the “pain” a client
feels during a crash
Measures how much
returns “bounce around”
Shows how different the DFM
is from the benchmark
Measures “bang for buck”
on active risk taken
WHAT TO ASK THE DFM
“What was the biggest drop this portfolio
experienced in (relevant period)?”
“Is this volatility consistent with
the portfolio’s mandate?”
“Are we paying you for a ‘closet
tracker’ or for genuine active calls?”
“How much extra return are we getting
for the risk of deviating from the index?”
*Active share measures the percentage of a portfolio's holdings that differ from its benchmark index, ranging from 0% (full index replication) to 100% (no common holdings).
** Information ratio (IR) is a performance metric measuring an investment manager's ability to generate excess returns relative to a benchmark, divided by the volatility
of those returns (tracking error). It evaluates consistency in beating a benchmark, with a higher ratio indicating superior risk-adjusted active management.
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2026 DFM GUIDE - INTRODUCTION
How important are the noninvestment
services of a DFM?
Increasingly, DFMs are acting as a business partner to
financial planners, not simply investment partners.
There is no doubt a DFM’s investment proposition is
the “engine” of a DFM offering, but most DFMs offer
other services that support financial planners in
their engagement with clients and/or in the running
of their businesses.
The non-investment services that DFMs offer often provide the
“chassis” that allows a financial planning business to scale. While
some DFMs see themselves purely as an “investment partner”
to a financial planning business, increasingly DFMs are acting
as “business partners”. The range of non-investment support
extends from tools used in the advice process to help financial
planners and clients make appropriate investment decisions,
to business support through technological and administrative
services that improve operational efficiencies, as well as resources
to ensure consistent and relevant communication to clients, and
ultimately to offering succession solutions.
These “value-added” services go well beyond the core services
of a DFM such as fund manager and asset allocation research and
portfolio construction. But in the South African context, where
the regulatory burden on Category I advisors is high, these noninvestment
services have become a significant differentiator for
DFMs. Given this increasing shift of DFMs seeing themselves not
simply as investment partners but “business partners”, there are
at least three key questions for DFMs and financial planners to
consider when it comes to non-investment services.
A. What type of support should DFMs provide to financial
planners with respect to practice management and the
efficiency of their operations?
Making investment administration more efficient
There is no doubt that through “cleaning up” a financial planner’s
investment book – often financial planners before using a DFM
could have scores of different funds in which their clients are
invested – DFMs have the potential to impact significantly the
efficiency of a financial planning business’ operations.
In using a DFM, a financial planner can relinquish the task of
doing research and due diligence on each fund that they use for
clients, as this now falls to the DFM to do. Similarly, the financial
planner is released from doing the research needed to determine
the asset allocation for each portfolio that a client invests in, as
well as for the ongoing tactical asset allocations that may be
needed. Perhaps most importantly, given the discretion that is
granted to the DFM via their Cat II licence, changes can be made
to client portfolios without clients needing to be consulted. This
lifts a huge administrative burden off financial planners with a
Cat I licence, who previously would have had to get clients to
sign off every individual change made to their portfolio. This
administrative burden is significant. Using a DFM not only makes
the financial planner’s investment proposition more efficient
and scalable, but also creates space for the financial planner to
devote their energy, expertise and time to other activities that
will enhance and add value to the client relationship.
Enabling effective and streamlined communication
Through using a select number of model portfolios, the financial
planners’ communication burden to clients is eased. Without
a DFM a financial planner needs to find the information and
communicate to clients about all the different funds they use.
In using a DFM, not only is it no longer the financial planner’s
responsibility to find the information and communicate it, but
the process of communicating is simplified as clients are likely
to be divided into limited numbers of “buckets” depending on
which model portfolio they are invested in. This facilitates a
streamlined communication process with respect to investments
with DFMs usually generating the content and often branding
the communication in the name of the financial planner.
This “white-labelled communication” could be in the form of
providing branded fact sheets, quarterly commentaries, and
market updates that the advisor can send to clients under their
own logo. This reinforces the advisor’s brand as the primary point
of contact.
The support a DFM offers financial
planners with respect to the
investment administration process
undoubtedly creates efficiencies
in a financial planning business
Efficiently meeting compliance obligations
Through providing fund manager research and selection
services; broader investment research to inform asset allocation
and portfolio construction decisions; ongoing monitoring of
investments and managing of cash flows into and out of model
portfolios; as well as providing the regulatory and client reporting
needed, DFMs ensure that the investment compliance obligations
of financial planners are fulfilled, with greater efficiency. This
compliance and regulatory de-risking assists financial planners
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2026 DFM GUIDE - INTRODUCTION
with the heavy lifting of FAIS compliance. This includes providing
auditable rebalancing trails, ensuring Regulation 28 adherence
at a granular level, and drafting the investment-related sections
of a practice’s Compliance Report.
Practice management support
Many DFMs offer support in the area of practice management. Key
areas in which a DFM may get involved include:
• Client management: Some DFMs offer to analyse the client
base of an advisor, helping them determine the profitability of
their client base, and enabling them to conduct a segmentation
exercise which can help streamline how they service their
clients. This type of analysis invariably reveals that most
financial planners have the 80:20 rule at play in their business
where 20% of their clients provide 80% of their revenue. This
type of analysis helps advisory businesses streamline their
client service resources more effectively.
• Technology and infrastructure: While some DFMs may provide
support or input to financial planners with respect to their
general technology needs, there are DFMs that offer access to
proprietary or licensed software for activities such as Financial
Needs Analysis (FNA) and cash-flow modelling. By integrating
these tools with the DFM’s model portfolios, the advisor not
only reduces manual data entry errors, but ensures a greater
alignment between their advice process and the DFM’s model
portfolios.
• Business succession and scalability: Some DFMs offer
consultancy on succession planning and practice valuations.
They help solo practitioners build a “centralised investment
proposition” that makes the business more attractive to
potential buyers by ensuring the investment process is
institutionalised rather than tied to one individual. Some DFMs
also create a community or “ecosystem” within their client base
that facilitates succession opportunities among the financial
planners who work with the DFM.
Ultimately the support that DFMs provide beyond simply
enhancing an advisor’s investment proposition enables financial
planners to revise their own value proposition to clients. Having
previously seen “fund picking” as an important part of their role
and value add, they can now focus on the client needs more
fully, and be supported by a more efficient and scalable business
model. In a sense using a DFM can enable the transition from the
financial planner as “technician” to “business owner”.
B. To what extent should DFMs support the financial planner
in giving advice to their clients?
A key benefit of working with a DFM is that the DFM can often
provide the “ammunition” and resources to enable an advisor to
have deeper, more meaningful conversations with clients.
The support that a DFM can offer to facilitate this includes:
• Financial planning tools: As previously mentioned, some
DFMs provide financial planners with financial planning or
cash-flow tools that enable them to sync the advice that they
give clients and the financial plans they develop, to the relevant
DFM model portfolio.
• Investment consulting: Some DFMs offer investment consulting
services to financial planners which involves analysing the
existing portfolio of a client that a financial planner may wish
to transfer into a model portfolio and providing the financial
planner with an investment rationale that they can give to the
client for the shift. Previously, this type of work would have
been done by the financial planner.
• Behavioural finance tools: DFMs often provide “coaching”
materials to help advisors manage client emotions during
market volatility. This might include “guide-to-investing”
brochures or visual aids that explain the impact of inflation and
longevity risk. Some DFMs provide risk-profiling and cash-flow
analysis tools which enable financial planners to integrate their
financial planning process seamlessly into the DFM’s model
portfolio solutions.
• Technical specialist access: Direct access to the DFM’s
investment committee or analysts allows the advisor to provide
“institutional-grade” answers to complex questions from highnet-worth
clients, effectively acting as an outsourced research
department.
C. To what extent do a DFM’s non-investment services create
conflicts of interest for financial planners?
The provision of “free” or subsidised non-investment services
creates a complex ethical landscape. Under the FAIS General Code
of Conduct, planners must act in the best interest of the client.
The challenge of benefitting from non-investment services for the
planner, is that these services could be deemed to be benefitting
the planner first, rather than the client. There is no doubt that
clients will benefit from working with a financial planner who
has a more robust business model that is run efficiently. But the
reality is, this is building value in the financial planner’s business,
potentially influencing the rationale for the financial advisor’s
choice of DFM. There is a risk that the choice of a DFM comes
down to, “not what can you do for my clients, but what can you
do for me?”
The consequence of this could be, for example, a DFM
provides expensive practice management software or sponsors
lavish “educational” events for advisors, thereby creating a sense
of obligation to the DFM. The risk is that the advisor continues
to use a DFM for its business perks even if the DFM’s investment
solutions or performance are no longer in their clients’ best
interests. Furthermore, DFMs can develop an undue influence
on an advisor’s business through non-financial interests. For
example, an advisor may only be able to access the DFM’s model
portfolio solutions by using financial planning software provided
by the DFM. This potentially impinges on a financial advisor’s free
choice to use whatever software they believe most appropriate
for their client base.
While it is important that financial planners disclose the
full nature of their relationship with their DFM, the reality is
that disclosure does not eradicate a conflict of interest. Noninvestment
services provided by a DFM are a welcome boost
for practice efficiency, and ideally are a significant enabler of
an advisor’s ability to help their clients identify appropriate
investment goals and reliably achieve them over time. But
advisors should at all times be awake to the reality that their
motivation for using a DFM can be unduly influenced by
the extent of the non-investment services, and this can be
problematic if that supersedes the advisor’s primary duty: to act
in the client’s best interest at all times.
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2026 DFM GUIDE - INTRODUCTION
How does the DFM business
model support the sustainability
of independent advice?
The rise of DFM-led communities presents both opportunities and challenges.
Beyond portfolio construction, DFMs increasingly differentiate
themselves through non-investment services that shape
practice efficiency, scalability and client engagement. The
DFM in South Africa has evolved from a simple service
provider into a potential “ecosystem owner”.
Both institutional and independent DFMs are creating communities
of advisors around them in which they are facilitating
relationships between their DFM clients as well as deepening
relationships with themselves by creating operational dependencies
on the DFM through both investment and non-investment services.
What started out as a bilateral relationship between DFM and
advisor has evolved into multilateral relationships which leads to a
delicate balance where the question could be asked, does the DFM
empower the independent advisor, or does it slowly absorb them?
We consider this question by looking at the impact of these growing
DFM communities, a shift to vertical integration and the question of
whether size matters in the DFM space.
A. What is the impact of DFM “networks” of advisory businesses
which evolve as DFMs grow their client bases and begin to
create communities around their offering?
We are seeing the rise of “DFM-led communities” in the case of institutional
DFMs (eg Graviton, Equilibrium and Symmetry) and independent
DFMs (eg Fundhouse, MitonOptimal and PortfolioMetrix). These
DFMs are not just playing the role of investment engines – they are
developing professional networks.
The "community" upside
In some cases the DFMs offer the institutional power of a large
corporate (eg shared costs or subsidised costs for services and/or
tools; centralised operational and management support) but the IFA
retains their independent FSP licence. This allows small independent
practices to compete with bigger players on a more level playing
field. Perhaps the two biggest benefits of a “DFM-led community”
are the following:
1) Peer sharing and benchmarking where the communities allow
advisors to share insights and experiences as well as compare
their practice metrics (fees, client retention, AUM growth) against
their peers. This is a powerful driver for professionalisation and
implementation of sustainable business practices.
2) The consistency that DFM investment solutions offer different
independent financial planning businesses combined with the
non-investment services provided to the businesses within a
“community”, provide a sound platform for DFMs to facilitate
succession conversations and implement succession solutions
between members of their DFM community.
There are risks to becoming a member of a DFM-led community:
• The potential for “groupthink” – where members begin to adopt
an “homogenised” advice model and investment proposition
propagated by the DFM, and as a result use the same “house view”
and the same client collateral, thereby potentially diluting their
unique value proposition and their positioning of independence.
• The risk of dependency – where independent advisors become
dependent on the DFM providing services that influence the
growth of their businesses, like investment consulting services
to persuade potential clients to move their existing investment
to a DFM, or begin to rely on the brand of the DFM for credibility.
This dependency could then make independent advisors vulnerable
to being integrated into the DFM’s business as DFMs try to capture
more of the value chain to protect their own business.
POTENTIAL IMPACTS OF DFM SIZE ON FINANCIAL PLANNER INDEPENDENCE
FEATURE
Sustainability
Independence
Tech/Reporting
Negotiating Power
Client Ownership
LARGE “INTEGRATED” DFM
High
(deep pockets/backing)
Potential “house view” bias
and use of in-house funds
Can be cutting-edge
(proprietary AI/portals)
High (can force fee cuts)
Potential “leakage”
to direct parent
INDEPENDENT/BOUTIQUE DFM
Moderate
(Dependent on AUM growth)
Generally unbiased
and open architecture
Tends to be more standard
(often uses third-party tools)
Moderate (possibly with
boutique fund managers)
Strong protection of the planner’s brand

2026 DFM GUIDE - INTRODUCTION
B. What is the risk of DFMs vertically integrating their
clients and becoming full-service FSPs with Cat I and
Cat II capability?
Full vertical integration occurs when a single entity owns the
platform (LISP), some or all of the funds used in the model portfolios,
the DFM (Cat II) and the Advice Arm (Cat I). Partial vertical integration
could take place where the DFM owns the advice business.
There are already DFMs that are taking partial or full stakes in
advice businesses. This begs the question whether there is a risk
that a DFM could shift from being a partner to a competitor. Full
vertical integration happens most commonly via institutional DFMs,
particularly those backed by large financial intitutions. By offering
independent advisors a succession solution, these institutional
DFMs move from “supporting” the advisor to “owning” the client
relationship. This creates an additional risk that independent advice
is undermined as the institution makes use of direct digital channels
or a tied-advisor model to extract more value from the relationship.
True DFM support for independence requires an “open
architecture” approach where the DFM is free to fire the parent
company’s funds if they underperform. In a vertically integrated
model this becomes very difficult. Vertical integration enables the
institutional DFM to extract fees at each point in the value chain. This
could be beneficial for a client if it allows for “fee bundling” where
some costs may be reduced. Conversely, if an advisor is owned by
a DFM, they will be less able to influence how model portfolios are
constructed with the risk that more expensive funds owned by the
institution are included in portfolio solutions to the detriment of
the client. Similarly advice fees may be prescribed by the institution
rather than being at the discretion of the advisor.
C. To what extent does size matter in the success of a DFM business?
Size definitely matters when it comes to DFMs, but it is not necessarily clear
whether bigger or smaller is better. There are merits to both. The bigger the
DFM, the more likely it is that the DFM will be around for the long term and
there is a greater likelihood that with larger assets under management, the
DFM will be able to negotiate lower fees with underlying fund managers. It is
also likely that the bigger the DFM, the more capital they will have to invest in
technology, AI-driven tools and robust cybersecurity.
They are also likely to be able to offer a comprehensive range of noninvestment
services to financial planners. While the scale benefits of a large
DFM will be significant across the board, the reality is that size gives the DFM
more leverage in their relationships with clients. Or put another way, the
influence of an individual financial planner on a large DFM is likely to be limited.
Requests for changes to a portfolio, the introduction of new fund managers, or
requests for changes in activities like reporting and communication are unlikely
to get much air time.
The key benefit of working with a smaller DFM is that a financial planner
is more important in that DFM’s world. Hence requests are likely to be given
more of a hearing. There is likely to be greater potential for more customised
portfolios; more openness to tactical portfolio shifts; and greater flexibility in
support and non-investment services. A potential drawback of a smaller DFM
is that they are likely to have less leverage over underlying fund managers and
this could be reflected in the pricing they are able to negotiate for the fund
in their clients’ model portfolios. So size definitely does matter, but it depends
what is important to you as a financial planner. Are you looking for a strategic
business partner (smaller DFM) who will be very attentive and responsive to
your particular needs – both investment and business related; or are you happy
to work with a larger DFM who may operate more like a very efficient service
provider, rather than a dedicated business partner?
Find out why the
High Street Balanced Prescient Fund
is the clear choice for SA retirement savers
with global ambitions.
High Street Asset Management (Pty) Ltd is an authorised Financial Services Provider (FSP No. 45210) licensed with the Financial Sector Conduct Authority. See full disclaimer: www.hsam.co.za

2026 DFM GUIDE - INTRODUCTION
AI – friend or foe of the DFM?
At present, it is most likely that the best models will
be a combination of humans and an AI team.
The rise of Artificial Intelligence in the world of
financial planning and investment management is
often portrayed as a binary choice: either it replaces
the human professional, or it empowers them. In
reality, AI is becoming the “silent partner” of professionals
across the board, and the question is to what extent has, and
will, AI impact DFMs.
A. How will DFMs use AI to make their services more efficient?
The scope for DFMs to use AI to improve their efficiency and service
offering is significant. The range of applications covers a broad
spectrum from – on the simpler end – AI assisting with mundane
operational and administrative tasks, to the more complex use of
“Agentic AI” to perform complex tasks like in-depth research or
customised reporting.
The FSCA has identified four areas in which AI will impact
businesses in the financial services sector. This provides a useful
framework to consider the ability of AI to enhance a DFM’s efficiency.
1) Operational efficiency
The operational efficiency of a DFM could be enhanced in a number of
key ways. Most immediately, through “intelligent automation”, AI can
automate routine tasks, reduce manual intervention and minimise
errors. For a DFM this is likely to apply to administrative tasks such
as managing cash flows in and out of portfolios, as well as fulfilling
portfolio reporting obligations, whether daily, monthly or quarterly.
Automation invariably leads to quicker processing of transactions
and applications, enhancing overall efficiency. In addition to this, AI
can help with Operational Straight-Through Processing (STP) and
could be used to reconcile trades across different LISP platforms,
flagging errors or pricing discrepancies instantly, which significantly
reduces the potential for “platform drag”.
2) Personalised client experience
AI-powered tools like chatbots and virtual assistants can provide
quick and accurate responses, enhancing customer service and
satisfaction. For example, DFMs could use chatbots to engage with
administrators and/or financial planners to enhance the response
time to queries.
AI provides the potential for hyper-personalised services,
for example offering individual bespoke portfolios per client
depending on their personal needs. This offering would be
supported by hyper-personalised reporting as AI would allow DFMs
to generate thousands of bespoke client reports in seconds. Even if
the DFM doesn’t offer individual bespoke portfolios, but “buckets”
of bespoke portfolios, AI would enable the DFM to deliver more
than a generic market update so that a client could receive a report
that explains how recent volatility impacted their specific portfolio,
depending on their current asset allocation and time invested in
the portfolio.
Whether using a chatbot or another tool, AI tools can handle
a wide range of client interactions, from basic queries to complex
transactions. This means DFMs will be able in real-time to help
financial planners on any aspect of a portfolio and/or a client’s
position/balance, ensuring that a personalised experience is
consistently delivered.
3) Risk management and compliance
AI tools can help DFMs manage risk and ensure compliance both
from an operational and investment perspective. AI systems
can monitor operational processes in real-time, identifying
inefficiencies and potential risks. This helps DFMs improve their
operational resilience and the fact that AI-powered tools can
automate repetitive tasks means the human members of a DFM
team may be freed up to focus on more strategic activities.
Real-time and continuous monitoring of portfolios means that
DFMs are quickly, and at an early stage, able to detect and prevent
any risks that portfolios may be subjected to, whether based on
macro-economic factors or market upheavals, or more microproblems
such as an issue with any underlying fund managers.
4) Data-driven decision-making
Given that AI systems enable the rapid processing and analysis
of large, complex datasets to identify trends, correlations and
anomalies, they can support evidence-based decision-making in
model portfolios and can also inform the development of new
portfolios that clients may need.
The ability of AI to scan and analyse vast datasets means DFMs
can use this to scan economic and market data, as well as fund
manager performance data. This not only reduces research and
analysis time dramatically, but also enables potentially more
informed decisions to be made by DFMs, whether it be in adjusting
asset allocations or hiring and firing fund managers.
B. How will the use of AI impact the costs of service delivery
and fees to clients?
The “AI dividend” has the potential to be a double-edged sword. On
the one hand it has the potential to reduce operational costs, but
on the other it will require investment from DFMs to ensure that
they are able to use AI effectively and efficiently, with the necessary
governance and ethical structures in place.
Lowering the costs of “production”
As AI increasingly takes on “responsibilities” for activities like fund
research, portfolio construction and administrative rebalancing,
the operational cost for a DFM will inevitably decrease. This should
help keep DFM fees stable (or even push them slightly lower) even
as regulatory and compliance costs may rise.
Enhancing investment strategies
AI-driven tools will allow DFMs to offer more sophisticated
strategies – like Active ETFs or Direct Indexing – at a fraction
of the cost of traditional active funds. They will also allow the
development of personalised model portfolios, with each client
potentially getting a unique asset allocation to meet their direct
needs, with “personalised” management of the portfolio as AI
18

2026 DFM GUIDE - INTRODUCTION
facilitates individual adjustments to portfolios rather than the need
for “global” switches across portfolios to be made.
The "advice alpha" premium
While AI lowers the cost of the investment component, it increases
the value of the advice component. Not only are planners freed up
to focus more fully on the client and their advice and behavioural
needs, but those planners who use DFMs powered by AI are likely
to be able service more clients without necessarily increasing
headcount or operational costs.
AI requires investment
While the benefits of AI like automation and seamless scanning
of data will reduce costs, the initial investment in AI systems
(eg training, integration, vendor solutions) can be significant. In
addition to this, the regulator is very clear that AI always needs
human oversight, so the need to have skilled humans both in DFMs
and financial planning businesses is not going to disappear.
C. As the sophistication of AI develops, how much of a threat
is it that financial planners will use AI to replace DFMs?
As AI becomes more sophisticated, a critical question arises:
Will planners eventually use AI to cut out the DFM? Or vice
versa? No doubt there are financial planners using DFMs who
are calculating the cost savings that this would bring, both to
their clients and themselves. And financial planners who don’t
use DFMs may be thinking that they won’t ever need to go down
that route thanks to AI.
The extent to which AI poses a threat to the DFM/planner
relationship will be informed by some key considerations.
Investment accountability is human
While a planner could use an AI tool to pick funds and construct
portfolios, they cannot use AI to carry the Category II legal liability.
The FSCA’s stance is clear that there must be human oversight for
all discretionary decisions. A DFM provides the regulated human
oversight that an AI tool cannot. Whether financial planners see
this as an opportunity to get a Cat II licence themselves so that they
can be the human oversight remains to be seen.
The "black box" risk
The risks of blindly using AI are well documented. AI tools are
known to “hallucinate”, to simply get things wrong and are often
at the mercy of the instructions they are given. If something goes
wrong with an internal “DFM” that is purely an AI tool, for example
an algorithm fails, a planner using their own AI has no-one to hold
accountable. By using a DFM, the planner has a professional entity
to hold responsible for the investment process and outcomes.
The "cyborg" advantage
The future is unlikely to be simply AI vs human. At this stage it
seems likely that the most powerful combination will be the
human plus their AI team. Until AI has proven itself to be on a par
with or better than humans in all aspects of financial planning
and investment management, it is likely that the most effective
partnership will be between a DFM that uses AI for the heavy
data lifting, automation of processes, robust implementation
of portfolios and potential generation of insights about client
behaviour; and a financial planner who uses those insights and is
freed up by the DFM’s automation to focus on having empathetic
holistic financial planning conversations with clients.
FACTOR
AI: THE DFM’S FRIEND VS FOE
AI AS A “FRIEND” TO DFM
AI AS A “FOE” TO DFM
Investment Alpha
Cost
Advice
Accountability
Identifies opportunities
humans miss
Lowers the cost of
professional management
Frees up the planner to focus
on the human side of advice
The DFM remains the
“human in the loop”
May lead to “crowded trades”
if everyone uses the same AI
Could lead to “fee wars”
that squeeze all players
Risk of “robo-advisors” bypassing
the planner entirely
AI “black boxes” make it hard
to explain losses to clients
FEATURE
Research
Portfolio Construction
Reporting
Key Value
THE AI EVOLUTION
THE PRE-AI DFM
Team of analysts researching
documents and data
Model portfolios
(one-size-fits-many)
Quarterly
(past-looking)
Fund selection and
asset allocation
THE AI-AUGMENTED DFM
AI scanning global
datasets in real-time
Hyper-personalisation for
individual mandates
Dynamic/real-time
(forward-looking)
Data synthesis and
“behavioral alpha” support
19

2026 DFM GUIDE - FOCUS
Absa: Putting client needs at
the centre of portfolio decisions
Investors and their advisors must first undertake a needs analysis
in order to determine the investor’s investment objectives.
Sitting with a client and determining the structure of future
cash flows, requirements, balance sheets and income
statements (a needs analysis) forms the very core of what
a financial advisor is.
For example, a pensioner might want to draw down their
investment and would require their capital to be relatively
safe with little market volatility. Other investors at the start of
their career would require a longer-term view and would be
prepared to stomach periods of market volatility to obtain higher
relative returns.
Investment objectives are usually stated as inflation plus a
targeted growth above inflation. The higher the target, the harder
it is to consistently achieve it without risking some form of capital
or variability of returns.
Once the financial destination has been determined in terms
of investment outcomes and risk tolerances, it is over to the
investment allocation area of an advisor to choose the best possible
portfolio designed to meet those pre-set investment outcomes.
With the complexity of financial markets, both local and global,
various asset classes to choose from, a multitude of asset manager
funds to choose from, the advisor now really has their work cut out
for them. They could choose from various investment models that
could cater for their requirements:
• Single Asset Funds, offered by a Licensed Financial Services
Provisor (FSP), for example an equity, fixed income, money
market or feeder fund.
• Multi-Asset Funds, managed by a single manager, for
example a High-Equity Balanced Fund.
• Fund of Funds – a manager will blend different CIS funds
together all offered in a Collective Investment Scheme itself.
• House View / Managed Portfolio – a combination of CIS funds
and potentially other assets that represent the best view of
the selectors at a particular point in time.
It is easy to compare one CIS category manager with another
manager in the same category. This was the whole purpose of
the ASISA categorisation. An SA Multi-Asset High Equity Fund’s
performance cannot simply be compared with an SA General Equity
Fund performance due to different risks and underlying asset class
allocations. These allocations are not only the manager’s choice,
but each ASISA category has certain limits placed on asset classes.
This provides investors with a fair understanding of what they are
investing in and whether the fund is suitable for their risk appetite
and expected return. A conservative, risk- sensitive investor should
not be investing all their savings in an SA General Equity Fund.
A Managed Portfolio or House View portfolio are, however, a
blend of different funds across different ASISA categories where
not only are the categories blended to achieve investment
objective outcomes, but managers of funds within each category
are selected based on some measurement criteria.
Asset managers and their offerings have to be researched
before investment and there is a very robust due diligence service
that is applied to ensure clients’ funds are invested in appropriate
mandates, with trustworthy and stable managers that have a
proven track record. This forms part of the fiduciary duty an advisor
has to their clients.
With over 1 800 CIS funds to choose from, the task of selecting
appropriate portfolios is a highly complex one.
Some advisors abdicate this responsibility by choosing a
blend of the biggest or most widely known multi-asset funds
(for example, a 50/50 split between large manager A and large
manager B). If the performance of these portfolios doesn’t return
the desired outcome, then it is the manager’s fault for not doing
what was expected. This is a very unsophisticated method of
choosing investment, but it is the simplest for a practice to explain.
To ensure that clients are getting the best possible blend of
investments, an ever-increasing number of IFAs now outsource
the construction of their portfolios to a Discretionary Fund
Manager (DFM).
Adam Reeves, Senior Investment Analyst, Index and Structured
Solutions team, Absa Corporate and Investment Banking (CIB).
20

2026 DFM GUIDE - FOCUS
There are numerous articles in past editions of this
magazine on what a DFM is and what services and
benefits they can bring to an Independent Financial
Advisory practice (IFA). In short, a DFM provides
professional and expert investment services in
creating and monitoring suitable investment
portfolios for advisor clients.
The DFM industry in South Africa has become
rather well developed with many DFMs to choose
from (over 60 at last count – February 2025).
DFMs can come in various formats:
• Independent retail DFM – no corporate ownership – fully
independent
• In-house DFM – specialist team within larger advisory practices
• Corporate DFM – backed and owned by large companies
(financial service providers or insurers)
So, if an IFA has recognised that they do not have the requisite
skill of creating appropriate portfolios, how would they go about
choosing a DFM?
What differentiates one DFM from another?
In order to answer that, we need to look at the services that a DFM
provides their clients. DFMs advertise the fact that their offering is
superior to other DFM offerings, and that they can add the most
value to advisory practices:
• Setting of investment framework and philosophy in alignment
with those of the IFA
• Research of managers (local and global)
• Portfolio construction (asset allocation), risk/return focused
core (DFM best view) or customised portfolios (IFA specific)
• Better access to asset managers and their lower-class funds
• Dedicated team of appropriate investment professionals
• Relationship management
• Size of DFM assets under management/advisement
Some DFMs have won industry awards but these are typically
voted for by IFAs on qualitative basis on the above services.
Regulatory framework comparison: South Africa,
the EU and the UK
The regulatory environment plays a crucial role in shaping
the level of transparency and disclosure expected from DFMs.
South Africa’s regulatory framework, governed by the Financial
Sector Conduct Authority (FSCA), the Financial Advisory and
Intermediary Services Act (FAIS) and the Collective Investment
Schemes Control Act (CISCA), requires DFMs to provide clear and
fair performance and fee disclosure.
However, the degree of standardisation and prescriptiveness
lags behind that of the European Union (EU) and the United
Kingdom (UK).
In the EU, regulations such as MiFID II and UCITS mandate
highly detailed and standardised performance reporting,
including risk measures, benchmarking and fee disclosure
both pre-contractually and on an ongoing basis. The UK, under
the Financial Conduct Authority (FCA), maintains similarly
robust requirements, with a strong focus on fair value, riskadjusted
returns and clear, regular client communications. Both
jurisdictions require performance to be reported net of fees and
place a premium on comparability and investor understanding.
By contrast, while South Africa mandates disclosure of
historical returns, risk measures and all associated fees,
there is less standardisation, and the frequency and
format of reporting can vary significantly between
providers. Client communication is subject to
regulatory oversight to prevent misrepresentation,
but there is room for further harmonisation to
match international best practices. Calls for greater
standardisation and simplification are growing, with
the aim of facilitating easier product comparison and
enhancing investor protection.
How can an IFA compare DFM portfolios’ performance?
If a DFM, using its investment prowess, builds specific portfolios
(core house view or specialised IFA branded portfolios), why isn’t
there a fact sheet per DFM portfolio? One where the decisions
taken by the DFM in their choice of constituents and their
weighting in a model portfolio can be scrutinised against peers.
Surely this would aid Independent Financial Advisors in
choosing a potential DFM partner?
There are additional complications where certain Cat II FSPs
amend the DFM suggested model portfolios as they may have
different views on certain managers, or asset allocations. These
then become the Cat II model portfolio rather than the DFM best
view model portfolio. A DFM could have numerous adaptations
on their best view model portfolio depending on how many Cat
II FSPs want to override their DFM with their own versions.
To ensure that we have captured all these different variations
of model portfolios we will henceforth refer to these as
“DFM/Cat II.”
Citywire South Africa host an annual DFM award, where
entrants compete for performance and service categories.
Most awards are aligned to the ASISA categories, six multi-asset
categories, equity, fixed income, global, etc. To ascertain these
awards, the participating DFM/Cat IIs provide Citywire with a
comprehensive set of data for them to use to be ranked.
Citywire uses a proprietary tool to not only analyse data for
awards but to also assist individual DFM/Cat IIs in analysing their
portfolio characteristics against certain high-level comparisons
with other DFM/Cat IIs – such as high-level asset allocation (for
example what the equity allocation is in a SA Multi-Asset High
Equity model portfolio).
Citywire’s tool relies on DFM/Cat IIs supplying full underlying
fund holdings and either gross or net performance for the
house‐view portfolios they choose to include, supported by a
data‐sharing agreement that restricts use to internal analysis,
client reporting and direct client marketing, while prohibiting
any public‐domain use and allowing access to be revoked if terms
are breached.
The tool aggregates these holdings and performance
submissions to create retail asset‐allocation and performance
benchmarks, giving discretionary managers visibility into
industry‐level trends without exposing peer‐level fund holdings
or individual performance. To ensure data accuracy and integrity,
providers must confirm that submissions reflect true client
experience, and the system runs quarterly checks by calculating
expected performance from holdings; any discrepancies or
outliers are queried directly with the relevant provider.
21

2026 DFM GUIDE - FOCUS
When initially starting this unique project,
many DFM/Cat IIs were happy to provide the data
but reluctant to be the first ones to be published
in performance tables. Being the first to hold
yourself out for peer and public scrutiny is not for
the fainthearted. So, the understanding was that
there would be no disclosure of performance to
the market, but Citywire would use this data to
calculate the DFM/Cat II awards.
There are currently 44 DFMs that submit data to
Citywire SA and according to Brett Powell (Head of
Audience Development, South Africa) more than
half of DFMs/Cat IIs would now consider having
their performance ranked in published tables. This
hopefully will be the case as there is more demand
from the wider industry with regards to client’s
rights to know what they are getting.
There are 18 different categories that Citywire
uses in order to align DFM/Cat II house views
together to ensure that apples are compared
with apples. IFAs and their clients are used to these
different categories as they currently exist in the
CIS industry already.
Citywire are independent and are at the
forefront of making published data available as
an industry-led initiative rather than an enforced
regulatory requirement, something that can only
be good for transparency and the advancement
of the industry.
Transparency and Performance disclosure:
reluctance and rationale
Despite the clear benefits of professional portfolio
management, the issue of transparency, especially
around portfolio performance disclosure,
remains contentious in the South African DFM/
Cat II industry. While transparency is generally
promoted to foster investor trust and market
integrity, DFM/Cat IIs may have a few legitimate
reservations about the open publication of their
portfolio performance.
Several reasons underpin this reluctance, but
there is always a counter reply.
• Contextual misinterpretation: Performance
figures, when viewed without the context
of specific mandates or constraints, may be
misinterpreted, leading to unfair comparisons
or reputational harm.
º Similar mandates need to be bunched to
together for any meaningful comparison.
The number of contributing DFM/Cat IIs per
ASISA categories are as follows:
• ASISA SA Multi-Asset High Equity: 40 DFM/
Cat IIs
• ASISA SA Multi-Asset Medium Equity:
24 DFM/Cat IIs
• ASISA SA Multi-Asset Low Equity: 20 DFM/
Cat IIs
22
• Absolute Return investment objectives:
14 DFM/Cat IIs
• Short-term performance volatility: Market
fluctuations can distort short-term results,
which may not reflect long-term strategy
effectiveness, potentially misleading clients.
º But this is exactly what CIS managers face
anyway, and as these are the underlying
components of most DFM/Cat II model
portfolios, advisors and clients should be
aware of the dangers of short-termism.
• Impact on client relationships: Clients could
react negatively if their portfolio appears
to underperform, even if it remains well
aligned with their personal objectives and
risk tolerance.
º This would, however, result in more
transparent communication between advisor
and DFM/Cat II as underperformance could
at least be quantified and a satisfactory
explanation given.
º Yes, it may be hard to explain to your clients
why you haven’t won, but they have a right
to know how close you got!
• Disclosure of AUM would impact the smaller
DFM/Cat IIs in their ability to attract IFAs, as
there is comfort in larger organisations in terms
of key-man risk, systems, etc.
• Balancing these considerations, DFMs often
prefer to manage client expectations and
portfolio reviews privately, rather than subject
their strategies to public scrutiny.
Conclusion
DFM/Cat IIs in South Africa operate in a complex
and evolving environment, balancing the
demands of sophisticated portfolio construction,
the need to protect proprietary strategies
and client confidentiality and the increasing
regulatory and market pressures for greater
transparency. While regulatory frameworks in
the EU and the UK provide models for highly
standardised and prescriptive disclosure,
South Africa’s approach continues to develop,
with industry-led initiatives complementing
regulatory efforts.
It all comes back to a few simple questions an
advisor must ask their DFM:
• Demonstrate to me that your model portfolios
are delivering in line with expectations.
• Allow me to compare similar mandate
offerings from various DFM/Cat II s on a
transparent comparative basis.
Imagine picking a CIS manager based on
qualitative criteria but not being able to compare
how you are doing against other funds in terms
of performance!
Doesn’t really make sense, does it?
Adam Reeves, Senior
Investment Analyst, Index
and Structured Solutions
team, Absa Corporate and
Investment Banking (CIB).
BIOGRAPHY
Adam Reeves is a seasoned
professional with nearly
four decades of experience
in the South African
financial investment
industry specialising in
Structured Investments, Asset
Management, Derivatives
and Investment Analysis.
Renowned for his deep market
knowledge and strategic
insight, Adam currently
serves as Chairperson of
the South African Institute
of Financial Markets, where
he has contributed as a
director for over 20 years. His
longstanding commitment
to the industry reflects his
dedication to promoting
integrity, innovation and best
practices within financial
markets.Currently, Adam is
a Senior Investment Analyst
in the Index and Structured
Solutions team at Absa
Corporate and Investment
Banking (CIB). In this capacity,
he leverages his extensive
market experience to design
innovative investment
products and deliver tailored
solutions to institutional and
retail clients.

Corporate and Investment Banking
Refined performance
is a measure of discipline
That’s how we are invested in your story.
When it comes to investment management, performance is built through precision, control and thoughtful
execution. At Absa Prime Services, we apply this approach to every layer of how we design our solutions,
manage risk and support sophisticated investment strategies.
Our integrated Prime Services platform provides clients with access to:
• Prime broking.
• Futures execution and clearing.
• Securities lending and borrowing.
• Innovative fixed-income and equity financing
capabilities.
• Multi-asset class real and synthetic exposure access.
• Sophisticated margining solutions.
• Award-winning technologies, analytics and
execution services.
• Integrated with Fund-Linked Solutions platform.
cib.absa.africa
Terms and conditions apply
Authorised Financial Services Provider Registered Credit Provider Reg No NCRCP7

2026 DFM GUIDE - INTERVIEW
Catering for bespoke needs
Analytics’ Daniel Schoeman provides a thorough breakdown of
what their DFM brings to the table for advisors and clients.
How does Analytics’ long history influence
its investment decision-making, manager
research and partnership commitment?
Our track record as one of South Africa’s earliest
DFMs informs both our investment philosophy
and our culture. Even though Graviton acquired
a majority stake in Analytics in October 2025, the
intention is still to enable independence, longterm
decision-making and alignment with advisors
and end-clients rather than with shareholders of a
large institution.
Key implications include investment decisions
free from corporate product bias, commitment to
genuine partnership and we can adjust portfolios,
processes or research priorities rapidly without
bureaucratic delays.
When it comes to selecting funds, Analytics
indicates that a partner advisor can retain
funds in their model portfolios “if they pass our
evaluation”. Please explain…
The fund manager selection process encompasses
both qualitative and quantitative criteria. Funds
must demonstrate consistent performance,
acceptable risk characteristics, appropriate fees
and diversification benefits to the overall model.
What factors determine whether a client is the
right fit for Analytics?
We enter into partnerships which support longterm
alignment. Ideal partners typically prioritise
long-term investing over short-term performance
chasing, commit to a detailed governance and fund
due diligence process, value robust portfolio design
and seek depth of research, transparent reporting
and ongoing engagement.
In addition to DFM and investment-specific
services, what else does Analytics offer?
Product support through assistance with portfolio
mapping and investment framework design,
bespoke model creation or branded solutions and
ongoing insights, performance analytics and market
commentary. Governance support through duediligence
materials for compliance audits, regular
investment committee reporting and assistance
with regulatory alignment. Operational support
through platform onboarding and operational
integration and streamlined transitions and
implementation processes.
24
Analytics has previously won the Citywire
SA DFM award. What service do you believe
distinguish your offering from competitors?
Winning the overall DFM award is driven by a strong
focus on people – both clients and teams. Clients
benefit from consistent, high-quality service and
performance. Internally, specialised teams work
together to deliver this experience: the investment
team concentrates on performance through macro
analysis and manager engagement; business
development strengthens and grows relationships;
technology enables fast, informed decision-making;
and operational and governance teams ensure robust
support, compliance and collaboration with LISPs.
Collectively, these teams create the performance and
service standards expected of a DFM award winner.
Considering the complex global market, what
is the size, scope and geographical footprint of
your investment research team?
Our investment research team combines local
depth with global reach:
• A core South African-based analyst team.
• Access to global research partners and third-party
data providers.
• Use of proprietary screening tools and global
manager databases.
• Quantitative analytics platforms.
• Collaborations with offshore asset managers for
insights into thematic and macro trends.
Describe the criteria used in your manager
research process?
Quantitative Assessment
• Long-term relative and absolute performance.
• Style and factor exposures.
• Consistency of alpha through various periods.
• Drawdown magnitude and period of drawdowns.
Qualitative Assessment
• Culture: alignment with stated philosophy,
evidence of prudent risk-taking and commitment
to client outcomes.
• Team stability: tenure, turnover, experience and
succession pathways.
• Alignment of interests: co-investment, ownership
structure and incentive design.
• Process robustness: clarity and repeatability.
• Governance and operational integrity:
compliance oversight, risk management and
operational resilience.
Daniel Schoeman, Chief
Investment Officer, Analytics
BIOGRAPHY
Daniel Schoeman is currently
CIO of Analytics. He has
more than 19 years of
investment and portfolio
management experience,
and has previously worked
at three of the largest multimanagers
in South Africa, first
at Investment Solutions, then
Momentum Multi-Managers
which later merged with
MCubed to form Advantage
Asset Managers. His main
responsibilities include
economic research, tactical
asset allocation, investment
manager research, portfolio
construction, monitoring and
risk management, system
development and innovative
investment research. He is
also a member of Investment
Committees of some of the
largest advisor networks
in South Africa, providing
investment consulting
services to these groups on
an ongoing basis.

THIS IS A FINANCIAL
PARTNERSHIP PRIMED
FOR MUTUAL GROWTH.
Where every challenge is given the merit it’s due.
Every solution is considered, individually tailored,
and brought to life with you and your needs in mind.
One that is positioned for opportunity and shaped
for the purpose of collaborative prosperity.
This year’s achievements build on the momentum we
created when we were named the inaugural Overall
CityWire DFM of the Year in 2022, and again recognised
as the DFM of choice through the Advisor Choice Award
for a second year running.
Partner with an Award Winning DFM.
SHAPING TOMORROW’S
WEALTH, TOGETHER.

2026 DFM GUIDE - PROFILE
Equilibrium Investment
Management
Equilibrium provides discretionary
fund management (DFM) services
and investment solutions to help
financial advisers and their clients
achieve their desired investment objectives.
Our unique advice-led local and dollardenominated
global model portfolios
are designed to be efficient and optimised
through market cycles. Available on
leading LISP platforms in South Africa,
we offer a proven track record of both
customised and standard solutions to both
Cat I and Cat II licensed financial advisers
and wealth managers.
Equilibrium is a wholly owned subsidiary
of Momentum Group and has a comprehensive
team of investment professionals
based in Johannesburg, Pretoria, Cape
Town, London and Liverpool. Founded in
2008, Equilibrium oversees assets under
management of over R34.5-billion.
We tailor investment
solutions that are
closely aligned
with our clients’
financial needs
rather than arbitrary
benchmarks
The Equilibrium philosophy
We tailor investment solutions that are
closely aligned with our clients’ financial
needs rather than arbitrary benchmarks.
Our outcome-based philosophy means our
portfolios are constructed and managed
as follows:
26
• We define a time horizon;
• We determine an acceptable level of risk;
• We deduce a reasonable return target;
• We set acceptable levels of risk or
acceptable negative returns with financial
advisers to reduce the impact of any
behaviour tax on clients’ investments.
Implications for financial advisers and
their clients
Our understanding of both the investment
management industry and the financial
advice process allows us to narrow the
gap between investments and advice. In
essence, Equilibrium becomes an extension
of a financial adviser’s practice.
Processes at Equilibrium
Process to develop and implement investment
solutions
Our investment solutions aim to achieve
the desired outcomes and increase
the probability of delivering the portfolio’s
objective.
Our portfolio construction process
attains equilibrium using three main steps:
1) Firstly, we determine the optimal strategic
asset allocation.
2) Then, we use the optimal combination
of investment styles.
3) Our final step is to identify the optimal
blend of managers or mandates to
execute on the above.
Process for servicing financial
advisers/clients
The success of our business hinges on
exceptional service and a strong operational
capability.
How we go about becoming trusted
partners to our clients:
1) We streamline an adviser’s workflow,
allowing them to dedicate more time
to clients.
2) We foster open communication
and create a fertile environment for
collaboration.
Perspective on performance
Looking at a snapshot of investment
returns within our standard portfolios,
the Conservative, Stable, Moderate and
Balanced portfolios have been well ahead
of their respective benchmarks over one,
three, four, five and six-year time horizons.
Over the seven-year time horizon, the
Growth and Unconstrained portfolios
were slightly under pressure and lagged
their benchmarks, mainly due to the
significantly higher return target of CPI
+ 6%. Pleasingly, we are still ahead of our
peer group.
Our understanding of
both the investment
management industry
and the financial
advice process allows
us to narrow the gap
between investments
and advice
Contact information:
For more details contact:
• Florbela Yates, Managing Director:
Equilibrium Investment Management
• Telephone: 082 451 5457
• Email: florbela.yates@eqinvest.co.za
• Website: www.equilibriuminvest.co.za
Equilibrium Investment Management (Pty) Ltd (Equilibrium) (Reg. No. 2007/018275/07) is an authorised financial services provider
(FSP32726) and part of Momentum Group Limited, rated B-BBEE level 1.

2026 DFM GUIDE - INTERVIEW
Catering for bespoke needs
Equilibrium’s Florbela Yates shares insight into how they
handle investments both locally and overseas.
Given Equilibrium’s focus on outcome-based
investing,what specific tools or metrics do
you provide to financial advisers?
We have developed our product range based on
feedback from advisers. Each portfolio is designed
to achieve a particular outcome over a reasonable
investment period, while focusing on downside
risk or drawdowns.
By not focusing on achieving the outcome
at all costs, but also modelling for particular
drawdown maximums over any rolling 12-month
periods, we make it easier for advisers to ensure
that clients go into portfolios aligned to their risk
tolerance over the shorter term. This has resulted
in clients staying invested for longer periods and
not trying to time the market.
We show advisers the modelling and the
impact that different outcome targets, investment
periods or drawdown amounts can have on
portfolios when they first join us. By ensuring
alignment between these targets to the advice
outcome, we make it easier for advisers.
We have also tested the models using data
from the Momentum Wealth platform to assess
the impact on clients who use our models. What
we found is that clients in the models tend to
stay invested for longer, switch out less often and
therefore have a higher probability of success.
As an investment group, Momentum has
conducted extensive work in behavioural finance.
We have developed tools to understand the
costs of switching out of portfolios at the wrong
time, and can determine the impact of switching
on clients’ portfolios. We are also able to compare
the impact between portfolios. While we
believe that this work adds exceptional value
to advisers, I think it’s fair to say that this is still
a fairly new discipline and not all advisers sign
up. But those that do have used the behavioural
personalities and client behavioural insights to
create better outcomes.
Equilibrium is an “advice-led business”. How
do you bridge the gap between investments
and the adviser’s advice processes?
Our models were put together in consultation with
financial advisers, so they have been constructed
specifically to address advisers’ financial outcomes
for their clients. We have a range of models that
cater for different needs, ranging from income
drawdowns, capital protection requirements and
real returns.
We can also cater for advisers whose clients
might have more bespoke needs. Here, we build
customised solutions that take into account
different outcomes, different time horizons or even
different targets. In addition, we can customise for
varying asset allocation requirements.
Since our skill set covers not only local but
offshore investments as well as alternative asset
classes, we have a range of offshore and hedge
fund solutions for clients.
How does Equilibrium choose fund managers
for its investment portfolios?
As a global business, we have teams based in
South Africa and the United Kingdom. Both
teams follow the same outcome-based investing
philosophy and look for similar things when
selecting asset managers.
The changes to Regulation 28 allowed us to
invest up to 45% of our local portfolios overseas
and this forced us to re-evaluate how we construct
portfolios. This was the trigger for the two teams
to start operating more cohesively. Although
the primary responsibility for portfolios lies with
the team in the jurisdiction in which the
portfolios are domiciled, we now have joint
manager research, asset allocation and portfolio
construction meetings.
As an outcome-based investment manager,
our process starts with strategic asset allocation.
Since this is the most important driver of returns,
we have regular combined asset allocation
meetings comprising members of both the local
and offshore investment teams, our economists,
strategist and global CIO. We also now include
members of the offshore investment team on
our local manager meetings and vice versa. As
subscribers to the United Nations Principles of
Responsible Investing, we follow an integrated
approach to responsible investing with extensive
collaboration between the teams.
The quantitative modelling of funds is
also conducted across both domiciles,
ensuring consistency.
Florbela Yates, Managing
Director, Equilibrium
Investment Management
BIOGRAPHY
Florbela Yates is the managing
director of Equilibrium Investment
Management. Equilibrium
is an independent discretionary
fund manager that partners
with financial advisers to
help them enable their advice
outcomes. Equilibrium brings
balance to an advice practice
by delivering services and
investment solutions to help
clients achieve their defined
investment goals.
27

2026 DFM GUIDE - PROFILE
Hollard Investment Managers
Hollard Investment Managers,
part of the Hollard Group, was
established in 2013. Based in
Parktown, Johannesburg, we
hold FAIS Category I and II licences
and are a Level 1 BEE contributor. Our
three propositions – Implemented
Portfolio Solutions (IPS), CIS Unit Trusts
and Balance Sheet Investment – are
anchored by a robust research engine
and “all-weather” philosophy. In 2023,
we launched IPS to deliver bespoke DFM
and consulting services for advisors and
institutions. Across the three propositions,
we manage and advise over R25-billion
in assets.
Beyond technical
skill, we seek
curiosity, resilience
and a passion for
delivering exceptional
outcomes
The heart of our success
At Hollard, our purpose is enabling more
people to create and secure a better
future. Our culture is built on shared
value, entrepreneurial thinking and
collaboration, ensuring a win for clients,
partners, Hollard and the communities
we serve. Conlias Mancuveni leads the
Implemented Portfolio Solutions (IPS),
supported by a dedicated research engine
of 11 investment professionals.
This multi-disciplinary team spans
client engagement and consulting,
research, portfolio management,
reporting, implementation and operations
and compliance. Hollard Investment
Managers values expertise and experience,
integrity, strong qualifications, diverse
backgrounds and a team-first mindset.
Beyond technical skill, we seek curiosity,
resilience and a passion for delivering
exceptional outcomes.
28
At your service
Hollard Investment Managers offers a
comprehensive suite of SA and Global
core range portfolios designed to meet
diverse client objectives – whether it’s
income generation, capital growth or
multi-asset diversification. These solutions
form the foundation for tailored strategies
that align with each advisor’s unique
client needs.
Our proposition is structured into
three distinct packages – Core, Custom
and Bespoke – segmented by minimum
assets under advice. This tiered approach
ensures flexibility and scalability, allowing
advisors to select the level of service that
best fits their practice and client base.
We have also developed specialist
portfolios focused on the needs of
Shariah-compliant investors. The main
outcome is enhanced diversification,
consistency and risk-adjusted returns
compared to peer averages.
Robust governance and research
We provide institutional-grade governance
backed by rigorous research standards
and transparency to ensure consistent
outcomes and confidence. Our process
includes clear manager ratings and
detailed investment rationale, giving
advisors full visibility into how decisions
are made.
High-touch partnership model
Our growth philosophy is simple: fewer,
deeper partnerships. We work with select
and aligned IFAs who have high-growth
potential, enabling them to outsource
investment functions to us while they
focus on expanding their practice. This
win-win approach ensures a healthy IFAto-consultant
ratio and consistently highquality
service.
The right fit
We have built our DFM proposition to
deliver more than portfolios – we deliver
a partnership experience. Our edge is
integrated into our entire investment
value chain and thought process, the 4Cs:
Credibility: Hollard is a well-established
brand synonymous with trust, enduring
partnerships and financial strength. We
have a seasoned team of investment
professionals with long tenures and have
delivered a proven track record of superior
performance since 2013.
Hollard offers a
comprehensive suite
of SA and Global
core range portfolios
designed to meet
diverse client objectives
Clarity: In an increasingly complex
investment landscape, simplicity with
substance is power. Our investment
team is equipped with innovative tools,
frameworks and models that cut through
the noise, enabling clear, confident and
consistent decision-making for clients.
Consistency: Our portfolios are
designed to be “all-weather”, built
to deliver steady, incremental
outperformance across market cycles and
macroeconomic regimes. This smoother
investment journey keeps clients invested,
driving better long-term outcomes.
Client centricity: We take time to listen
and understand each advisor’s ecosystem,
conducting comprehensive “wellness
checks” to assess their book, revenue
model, operational challenges and
strategic goals. Every recommendation is
tailored to fit their unique context.
Contact information:
For more details or to explore
partnership opportunities, contact:
• Denay Valjee, Head: Distribution
and Marketing
• Email: denayv@hollard.co.za
• Website:
www.hollard.co.za/invest-and-save

2026 DFM GUIDE - INTERVIEW
A trusted partner
Conlias Mancuveni says Hollard Implemented Portfolio Solutions (IPS)
has positioned itself to be a reliable partner that empowers advisors.
What makes your business distinctive?
Hollard IPS’s strength is its flexibility and depth.
We offer a fit-for-purpose implemented consulting
approach, combining institutional advisory
(FAIS Category I) with discretionary investment
management (FAIS Category II) in one fully
integrated model to tailor solutions for IFAs with
either Cat I or Cat II licences, full discretion, or
a hybrid approach across the entire investment
value chain. We are structured to support
advisors with institutional clients who require
bespoke, multi-strategy solutions. From initial
strategy reviews to ongoing governance –
covering return objectives, risk budgets, SAA/TAA
bands, IPS drafting, manager selection, portfolio
construction and performance monitoring – we
enable advisors to respond quickly to market
opportunities while mitigating risk effectively.
Who is your ideal client?
Our ideal partners are IFAs who:
• Operate as general practitioners with assets
under advice of R100-million to R300-million
and want to realise the growth potential of
their investment advice through an aligned
DFM partnership by outsourcing specialist and
time-consuming investment functions.
• Require specialist solutions such as Shariahcompliant,
hedge fund-focused, offshorefocused
or ETF-based portfolio solutions.
• Service institutional clients needing
institutional-grade, bespoke services.
• Seek to establish CIS unit trusts and need
research-led multi-manager expertise for
SAA, TAA, risk management and hedging,
manager research and ratings, fee calibrations
and negotiations and portfolio construction,
reporting and implementation.
Our DFM capability does not serve direct retail
investors. Our services are designed for financial
advisors and wealth managers who value
outsourcing investment management to focus
on client relationships and financial planning.
What role do you believe DFMs play in
improving client outcomes?
DFMs bring institutional-quality expertise,
robust governance and scalability to the advice
process. By delegating portfolio management,
advisors gain the freedom to focus on their core
disciplines and what truly matters – client goals,
holistic planning and delivering higher-quality
advice while driving practice growth.
Some argue DFMs are just another layer of
costs for clients. Your response?
We believe cost matters – but value matters more.
It’s about striking a balance which is effectively a
cost-adjusted value. Most DFMs provide access
to professional investment processes and
access to institutional-grade resources, bespoke
solutions, continuous monitoring and oversight
that advisors cannot easily replicate. In our case,
our internal research provides an extra layer of
governance through regularly updated and
transparent manager strategy and responsible
investment ratings, an investment philosophy
that seeks to strike a healthy balance between
short- and long-term objectives and bespoke
solutions that integrate the IFA’s advice process.
When you factor in all the benefits you far
outweigh the additional layer of fees.
What are the biggest challenges you see
facing DFMs in the next decade?
The COFI bill will promote a principles-based,
outcomes-focused approach that requires
financial institutions to demonstrate a clientcentric
culture, governance structure and fair
treatment standards. Clients and advisors will
also expect greater value for money.
Digital platforms and AI-driven solutions will
continue to reshape data generation, information
processing speed and portfolio decision-making
and client engagements. The rise of AI is set to
disrupt traditional asset class definitions and
compositions. New asset classes may emerge,
while concentration risks could persist as
AI-related investments gain momentum.
If central banks continue increasing their
gold reserves and crypto platforms become
more mainstream, retail investors may demand
greater exposure to these alternative assets
within their portfolios. Younger investors expect
personalisation, ESG integration, real-time
insights and even crypto considerations.
Conlias Mancuveni,
Hollard Implemented
Portfolio Solutions
BIOGRAPHY
Conlias Mancuveni leads
the implemented consulting
capability at Hollard Investment
Managers, serving as the lead
portfolio manager for bespoke
solutions while overseeing
the full investment consulting
process. With over 19 years
of experience in portfolio
management, he brings deep
expertise and strategic insight
to investment decision-making
across the entire value chain.
29

2026 DFM GUIDE - PROFILE
Independent Investment
Solutions
Independent Investment Solutions (i²),
founded in 2016 and headquartered in
Johannesburg, delivers independent,
multi-asset investment portfolios tailored
for both local and offshore markets. Backed
by a multi-billion-rand asset base across
leading local and international platforms,
i² empowers authorised financial advisors
with transparent, expertly managed and
truly independent investment solutions.
Built on a foundation of a rigorous fund
selection process and ongoing reviews,
the company offers diversified strategies
across the risk-return spectrum to align
with clients’ financial goals.
The heart of i²
i² is driven by a highly qualified and
experienced team dedicated to delivering
exceptional investment management.
Our investment committee comprises
three independent experts who provide
objective oversight and strategic guidance.
The company’s leadership includes
a Managing Director and a Chief
Investment Officer, supported by a
skilled Operations Head and a dynamic
Business Development Manager. Our
administrative support professionals
ensure seamless client service and
operational efficiency.
Together, this multidisciplinary team
brings deep industry expertise and a
strong commitment to independent,
client-focused investment solutions.
A strong culture
Transparent, engaging, supportive, client
and customer focused, positive and
progressive. We are a company that’s not
only client-focused but also employeefocused.
We ensure a positive, inclusive
work environment where everyone is
encouraged to share new ideas and
participate in the decision-making process.
The value is unmatched
i² primarily serves independent financial
advisors who require robust, transparent
30
and professionally managed investment
solutions for their clients. We understand
the unique needs of advisors – balancing
high-quality investment outcomes with
efficiency, independence, trust and client
relationships, and have built our offering
specifically around these priorities.
Built on a foundation
of a rigorous fund
selection process
and ongoing reviews,
the company offers
diversified strategies
across the risk-return
spectrum to align with
clients’ financial goals
Our value proposition is centred on
complete independence, ensuring that
advisors can confidently offer unbiased
investment solutions. We provide a
comprehensive range of cost-effective
local and offshore solutions, constructed
and managed using robust and tried
and tested investment processes. These
solutions are available, in the same format
where possible, across South Africa’s
largest and most recognisable investment
platforms, ensuring ease of access, seamless
integration and operational flexibility
for advisors and their clients. To further
support our advisor partners, we offer the
opportunity to join our quarterly investment
committee meetings. This transparent,
open-door approach allows advisors to
gain valuable insight into our decisionmaking
processes, engage directly with our
investment professionals, ask questions and
deepen their understanding of portfolio
positioning and market dynamics.
The value proposition is enhanced by the
provision of an industry-leading technology
platform that is designed to support and
assist the advisor in the drafting of proposals
and in management of regulatory reporting
and compliance requirements.
Strategically sound
i²’s core strategy centres on constructing
diversified, high-quality local and offshore
investment solutions that are aligned to
clearly defined risk profiles and investment
objectives. Through our investment
process, we blend active and passive
strategies and apply a rigorous fund
selection process to ensure our investment
solutions remain both competitive, costeffective
and resilient through changing
market cycles.
A key strategic pillar is our commitment
to complete independence. Free from
product bias or distribution influence, we
select only those managers and instruments
that best serve client outcomes – an
industry trait identified as critical for
effective discretionary fund management.
This objective, unbiased process allows
us to remain fully aligned with advisors
and to adapt portfolios proactively as
market conditions evolve. Our overarching
objective is straightforward:
to provide consistent, professionally
managed portfolios that support advisors
in delivering superior outcomes.
Through disciplined oversight, open
communication and continuous research,
we strive to ensure that every portfolio
reflects both global best practice and the
evolving needs of South African investors.
Contact information:
To request a portfolio proposal,
contact:
Elmarie Fourie
Phone: 010 597 6687
Email: info@i2solutions.co.za
Website: www.i2solutions.co.za

Because real results come
from discipline, not distraction.
Successful investing isn’t about reacting to short-term market swings. It’s
about having the discipline to stay the course – remaining focused on
your goals while others are distracted by the noise.
At Independent Investment Solutions, our philosophy is built around
discipline, consistency and independent thinking. We believe that
lasting success comes from time in the market – guided by experience,
research and a steady hand.
www.i2solutions.co.za
Independent Investment Solutions – stay the course. Build with confidence.
Independent Investment Solutions (Pty) Ltd is an authorised fi nancial services provider, FSP 48201.

2026 DFM GUIDE - INTERVIEW
Enhancing value and
diversification
Independent Investment Solutions’ Michael Badenhorst shares why
DFMs are important in the grand scheme of investment solutions.
What role do you believe DFMs play in
improving client outcomes?
In an investment landscape defined by
complexity, volatility and an overwhelming
choice of investment solutions and products,
discretionary fund managers have become
indispensable partners in supporting better
client outcomes. Their contribution goes far
beyond portfolio construction. They bring
structure, discipline and professional oversight
to a process that significantly influences
financial success.
A core advantage of a DFM lies in their
ability to apply institutional-grade investment
processes to retail investment solutions.
Using rigorous quantitative and qualitative
analysis, robust due diligence and continuous
monitoring, DFMs construct portfolios that are
well-diversified, risk-appropriate and aligned
with clearly defined objectives. This structured
approach results in outcomes that are not only
more consistent but also more resilient through
market cycles.
DFMs also play a vital role in reducing
behavioural risk, which is the emotional
decision-making that often leads to investors
buying high and selling low, or abandoning
an investment strategy prematurely. By
maintaining discipline through strategic asset
allocation and deliberate risk management,
32
A core advantage
of a DFM lies in
their ability to
apply institutionalgrade
investment
processes to retail
investment solutions
DFMs help clients stay invested through
uncertainty, which is fundamental to achieving
their goals.
By maintaining discipline
through strategic asset
allocation and deliberate
risk management, DFMs
help clients stay invested
through uncertainty,
which is fundamental to
achieving their goals
Another benefit is enhanced diversification.
DFMs blend multiple fund managers and
investment styles, reducing reliance on any
single manager and improving the potential for
stronger risk-adjusted returns. Their research
depth positions them to identify opportunities
and mitigate risks more effectively.
Cost-efficiency and transparency further
strengthen the value we provide at
Independent Investment Solutions. We create
cost-effective building blocks by negotiating
favourable investment management fees
on behalf of financial advisors and their clients.
Our reporting, regular communication
and the provision of access to our investment
committee also give our advisors and their
clients clearer insight into performance, risks,
fees and portfolio positioning.
Importantly, DFMs allow financial advisors
to focus on what matters most: building client
relationships, creating personalised financial
plans, focussing on estate planning and tax
structuring and supporting clients through
the emotional side of investing. With the
investment process professionally delegated,
Michael Badenhorst,
Chief Investment Officer,
Independent Investment
Solutions
BIOGRAPHY
Michael Badenhorst is the
Chief Investment Officer at
Independent Investment
Solutions and oversees the
investment strategy and
strategic direction of the
business. He is a seasoned
investment professional
with more than a decade
of experience in multi asset
research, manager selection,
portfolio construction, and
performance measurement.
Michael holds an MBA from the
Stellenbosch Business School
and is a CFA Charterholder.

2026 DFM GUIDE - INTERVIEW
DFMs allow financial advisors
to focus on what matters most:
building client relationships,
creating personalised financial
plans, focussing on estate
planning and tax structuring
and supporting clients through
the emotional side of investing
advisors can dedicate more time to delivering holistic, goalsbased
financial guidance.
Ultimately, discretionary fund managers enhance client
outcomes by combining expertise, discipline, diversification
and behavioural guidance. Their involvement leads to more
consistent and more strategically aligned portfolios. This
empowers financial advisors to deliver a stronger, more
dependable investment experience for their clients.
Are DFMs just an extra layer of cost?
A common criticism in the industry is that DFMs
simply add another layer of costs for clients. While it is
true that DFMs charge a fee, there are two factors that
need to be considered, the first being the value added
for the fee charged, and the second being the fact that
the institutional fee discounts available to the DFM may
outweigh the DFM fee that is levied, thus making the DFM
solution cheaper.
Regardless, when assessing a DFM, the focus should extend
far beyond cost alone. The real measure of a DFM lies in its
overall value proposition; the quality and consistency of its
investment process, the strength of its risk management
framework, the depth of its research and, crucially, the
performance of its solutions relative to their stated benchmarks
and objectives over their defined time horizons. These elements
determine whether a DFM is merely a cost or a meaningful
contributor to long-term client outcomes.
When assessing a DFM, the focus
should extend far beyond cost
alone. The real measure of a DFM
lies in its overall value proposition
The well-known principle applies here: price is what you pay;
value is what you get!
A skilled and disciplined DFM can enhance diversification,
remove behavioural pitfalls, improve portfolio consistency,
reduce manager-specific risk and support better after-fee
outcomes by applying a structured, repeatable investment
process. These benefits, when delivered effectively, far
outweigh the marginal cost that may be added to the
investment value chain.
It is also important to address the issue of performance
fees. While performance-based fee structures are common
in parts of the industry, we at Independent Investment
Solutions believe they introduce unnecessary complexity. For
this reason, we exclude performance fees entirely from our
investment solutions. Our commitment is to deliver transparent,
predictable and fair pricing, ensuring advisors and their
clients clearly understand exactly what they are paying for.
Ultimately, the question should not be whether a DFM charges
a fee, but whether they deliver value that justifies that fee.
Should DFMs publish performance tables like
fund managers?
Yes. Transparency is the cornerstone of trust in financial services,
yet DFMs have historically operated with far less public reporting
than fund managers (CIS Funds). As DFMs increasingly influence
investment outcomes, it is both reasonable and necessary for
the industry to move towards more standardised, comparable
and openly accessible performance disclosures. This shift would
not only enhance accountability but also help advisors make
more informed decisions on behalf of their clients.
Ultimately, the question should
not be whether a DFM charges
a fee, but whether they deliver
value that justifies that fee
Legislative evolution will likely play a key role. As the DFM
industry grows, regulators are expected to introduce clearer
frameworks governing disclosures, performance reporting and
due-diligence requirements. These changes would bring DFMs
closer to the standards that fund managers have adhered to for
years – standards that improve comparability, consistency and
overall market integrity.
At Independent Investment Solutions, for example, we do
not report on back-tested or hypothetical returns at all. Every
figure we present is grounded in actual portfolio history.
Likewise, all information relating to performance, fees and
portfolio composition is openly available and easy to access
by any investor.
This level of openness is not only good governance, but also
in the best interests of advisors and their clients. When DFMs are
transparent, advisors can confidently compare methodologies,
track records and fee structures and ultimately select a partner
whose solutions genuinely support their clients’ goals.
As the industry continues to evolve, we believe that
mandatory performance tables, standardised disclosures and
uniform reporting requirements will become the norm – and
we welcome that future. A more transparent DFM industry is a
stronger, more trustworthy one.
33

2026 2025 DFM GUIDE - PROFILE
INN8 Invest
INN8 Invest is an independent
discretionary fund manager (DFM) that
places global, best-in-class expertise at
your fingertips. INN8 Invest has roots
going back more than 20 years and is the
centre of excellence of multi-managed
solutions and services within the Standard
Bank Group; with R500-billion+ under
stewardship. For the Standard Bank Group
to better entrench itself as a leading DFM
solution provider, the STANLIB Multi-
Manager model portfolio proposition for
third-party IFAs was repositioned in 2022
under a new brand, INN8 Invest.
Investment philosophy
Our objective is to deliver superior net
investment returns more consistently
than through a single asset manager or
mandate by exploiting various sources
of return, while diversifying multiple
sources of risk. We begin with a focused
and uncompromising commitment to
exploiting the highest quality data,
systems, processes and people, since
these are the factors that can be
controlled in an otherwise uncertain
investment environment.
We believe that when values and
beliefs are followed with great care and
responsibility, the result is an emergence
of successful portfolios. Therefore, we do
not begin with investment ideologies, but
rather apply curiosity and critical thinking.
We value collective decision-making and
When values and
beliefs are followed
with great care
and responsibility,
the result is an
emergence of
successful portfolios
34 24
Millectas nem ab iurehenis
sequiaspicat rerias aut.
consider all sources of risk and return. We
invest in learning and development and
focus on high-quality inputs.
Developing investment solutions
We apply a disciplined, research-driven
approach that allows financial planners
and investors to benefit from more
consistent, long-term performance
at lower levels of risk. Investment risk
management is a fundamental and
integral component of our investment
philosophy and process. It is therefore
approached holistically, permeating
through every step of our investment
process, rather than as a distinct
component or an after-thought. Our
process consists of six steps:
• Portfolio specification: Clarifies objectives
and constraints.
• Asset allocation: Explores strategic and
tactical sources of risk and return.
• Manager research: Identifies skilful
managers and their performance
expectations.
• Portfolio construction: Maximise
probability of delivering on expectations.
• Portfolio management: Including
monitoring, manager exists and
transitions; and
• Portfolio reviews: To assess whether the
portfolio is delivering to expectations.
Our power comes
with the comfort
and security of a
large balance sheet
thanks to our size
and scale that allow
for competitive fees
The benefits
Through our partnership with IFAs, the
service we provide enables IFAs to focus
even more on holistic financial planning.
As an appointed DFM, we take care of
the day-to-day investment management
using our pedigree of access to best-inclass
discretionary fund management;
established track record; and reputable
and consistent performance outcomes
over time.
Our power comes with the comfort and
security of a large balance sheet thanks to
our size and scale that allow for competitive
fees. In terms of partnerships, we drive
greater efficiency in IFA practices, mitigate
IFA investment/advice risk and empower
investors with the necessary information
and insights.
Performance consistency is key to our
DFM value proposition. A better and more
consistent outcome for investors promotes
longer relationships and contributes to
performing in line with client expectations
and aligns better with a goals-based
advisory approach.
Contact information:
For more information, contact:
• Telephone: 0860 004 668
• Email: inn8invest@inn8.co.za
• Website: www.inn8.co.za
INN8 Invest is a division of STANLIB Wealth Management (Pty) Ltd, an authorised Financial Services Provider,
with licence number 590 under the Financial Advisory and Intermediary Services Act (FAIS).

2026 DFM GUIDE - INTERVIEW
INN8 Invest’s Three-Alpha Model
INN8 Invest’s Leigh Kohler explains how scale, process
and technology aim to lift advisor outcomes.
Discretionary fund managers are often judged on
performance tables only, but Leigh Kohler (Head:
DFM at INN8 Invest) argues that the more useful
test is whether a DFM improves outcomes for three
parties at once: the end-client, the advisor as well
as the advisory practice. Kohler frames the DFM
role as a specialist partner to a financial planner’s
value proposition to their client, rather than a
replacement for it.
A DFM built around advisory practices
“We don’t provide a cookie-cutter approach,”
said Kohler. INN8 Invest offers standard
model portfolios, co-branded propositions
and customised portfolios within defined risk
parameters. “We incorporate flexibility into our
processes. INN8 Invest’s offering is designed to
listen and incorporate the voice of the advisor into
portfolio design, but we retain accountability as the
Category 2 FSP responsible for the final decision.
Our advisors can propose changes and debate
views, but only where a manager or strategy has
passed the firm’s investment and operational due
diligence and the change strengthens the solution,”
added Kohler. “If it doesn’t make sense, we will
clearly communicate the reasons for non-inclusion
to the advisor.”
Repeatability over heroics
Kohler defines investment value as “expected netof-fees
outperformance relative to peers over time”
and attributes INN8 Invest’s ability to achieve this to
team depth, institutional experience and disciplined
decision-making. INN8 Invest has 17 investment
professionals and R150-billion-plus assets under
management, with R500-billion-plus under
stewardship. This represents scale that supports
specialist capability, but process matters as much
as resources.
“Investment decisions aren’t made with a
cowboy, shoot-from-the-hip approach – our
decision-making process is inclusive, collegiate
and institutionalised and that is important to
generate consistent outcomes for our clients. You
need discipline and repeatability in your process
as well and the ability to find managers who are
able to out-perform and are flexible enough to outperform
in really, really difficult market conditions.
To use a cricketing analogy, it’s all about hitting
ones and twos, not occasional sixes,” he added.
The “DFM multiplier” and three alphas
According to Kohler, many DFMs struggle when
it comes to proving that the additional DFM fee
layer is additive to the client’s outcomes. INN8
Invest’s response is its “DFM multiplier effect”,
framed as three sources of alpha. First is the core
performance objective – Investment Alpha. Second
is Practice Alpha, the measurable savings in time and
operating cost inside an advisory business. Without
a DFM, a portfolio change will require internal
research, administration and client communication
across hundreds of accounts and with real cost
implications on an income statement. A DFM “worth
their salt” should remove much of that operational
load through mandate, systems and process. Third
is Advisor Alpha, which is the behavioural and
coaching value advisors can deliver when freed from
manager research and portfolio administration.
“Research proves that good advice can add
roughly 75 to 100 basis points through better
investor behaviour. Combined, the three alphas
can add 2.5% to 3% additional out-performance
across those spheres of influence – and the key
word is compounding. Even small, repeatable
improvements in net outcome can become
material over a typical advice relationship.”
Power: what scale buys
Scale is central to the INN8 Invest narrative. The
firm speaks to “pedigree, power and partnership”
and highlights size as a practical advantage in
negotiating underlying manager fees. “The client
is essentially getting institutional fees despite
being a retail investor. Scale supports investment in
technology and specialist roles that smaller DFMs
may struggle to fund, and our DFM Advisor Portal
centralises portfolio information, market updates
and value-added content,” added Kohler.
The strategic thread is that a DFM should not
be an extra cost centre bolted onto advice. If it can
combine disciplined investment decision-making
with demonstrable practice efficiencies and better
advisor-client behaviour, then the multiplier becomes
more than a slogan – rather, it becomes a measurable
contribution to long-term client outcomes.
INN8 Invest is a division of STANLIB Wealth Management (Pty) Ltd, an authorised Financial Services Provider, with licence number 590 under the
Financial Advisory and Intermediary Services Act (FAIS).
Leigh Kohler, head of DFM,
INN8 Invest
BIOGRAPHY
Leigh joined INN8 Invest in
2020 as head of DFM. He
started in the industry in 2003
at Glacier. Leigh held several
roles at Glacier, including Head:
Investment Administration;
Head: Research; Head:
Investment Solutions – a
portfolio that included Glacier
Research, Glacier Manco and
Glacier Invest (DFM). He then
joined Sanlam Multi-Manager
in 2019 as Head: Business
Solutions, continuing
his role within the DFM,
but included a broader
mandate including product,
distribution, proposition
and institutional business.
Leigh holds a BCom (Hons) and
an MBA.
35

2026 DFM GUIDE - INTERVIEW
Relevant, effective and decisive
Nadir Thokan and Fay Khan share insights into how Investment Solutions
by Alexforbes (IS) assists advisors in servicing clients effectively.
How do IS’s Advisor and Practice Impact
Reports provide “real-time insights that
shape future-fit solutions”?
Fay Khan: IS’s Advisor and Practice Impact
Reports go beyond static performance reviews
by leveraging data engineering, technology
and best-practice research to deliver actionable
insights in real time. These reports analyse an
advisor’s entire book by covering discretionary
vs contractual assets, client demographics, age
bands, product mix and asset exposure across
local and global portfolios. They highlight flow
trends, calibration gaps and synergies, enabling
advisors to answer three critical questions: What
does my book look like? What should it look
like? How do I get there? By visualising AUA
splits, product concentration and diversification
opportunities, advisors can identify restructuring
needs that improve client outcomes. At a
practice level, these insights support efficiency,
compliance and growth strategies, helping
advisors align their advice with evolving client
needs while optimising their operational model
for sustainability and scalability.
Please explain how you balance the
needs of a “tied” advisor force with those
of independent advisors and how you
overcome potential conflicts of interest.
FK: Alexforbes does not have a tied force. All of
the advisors at Alexforbes Wealth and FPC are all
independent, who happen to be avid supporters
of Alexforbes products and investment solutions.
This allows for synergistic servicing to IFAs
outside the Alexforbes ecosystem. IS maintains
a clear governance framework to balance the
needs of Alexforbes’ advisors and independent
IFAs outside of the Alexforbes ecosystem. We
achieve this by offering a consistent suite of
solutions underpinned by impartial research
and transparent pricing, ensuring no preferential
treatment. Potential conflicts are mitigated
through strict adherence to Treating Customers
Fairly principles and by separating product
development from distribution influence. This
approach fosters trust and positions IS as a
neutral partner focused on IFA practice prosperity
and client outcomes.
36
Please elaborate on the unique succession
planning process where Alexforbes may
transition/buy a retiring advisor's book?
FK: Alexforbes’ succession planning process
offers retiring advisors a structured exit strategy
by transitioning or acquiring their book of
business. Key criteria includes client suitability,
portfolio alignment with Alexforbes’ investment
philosophy and full regulatory compliance. This
arrangement ensures continuity for clients,
preserving their financial plans and relationships
while minimising disruption. For advisors, it
provides peace of mind and fair value realisation
for their life’s work, safeguarding both their
legacy and their clients’ long-term interests.
How does AF Invest, your digital launchpad,
facilitate empowerment of emerging IFAs,
particularly black advisors?
FK: AF Invest is a transformative digital
launchpad designed to remove traditional
barriers for new and emerging IFAs, particularly
black advisors seeking to establish and grow
their practices. By providing a fully integrated,
low-cost advisory platform, AF Invest enables
seamless market entry without the heavy
infrastructure and compliance burdens that
often hinder startups. Advisors gain access
to automated portfolio modelling, real-time
analytics and compliance tracking within a
single, intuitive system which enables them to
deliver professional, future-fit advice from day
one. This digital-first approach not only levels
the playing field but also positions emerging
IFAs to compete effectively in a rapidly evolving
financial landscape.
How do IS’s Best Practice team and Academy
support IFAs?
FK: IS leverages the broader Alexforbes Best
Practice team and Academy which empower
IFAs through structured learning, operational
guidance and regulatory updates. The Academy
offers accredited training programmes covering
advice standards, investment strategies and
practice management. Meanwhile, the Best
Practice team provides hands-on support in
implementing efficient workflows, compliance
Fay Khan, Senior Discretionary
Fund Management Specialist
at Investment Solutions by
Alexforbes
BIOGRAPHY
Fay joined Alexforbes on
1 May 2023, initially as a
Senior Technical Marketing
Specialist before transitioning
to her current role as a
Senior Discretionary Fund
Management Specialist
with Investment Solutions
by Alexforbes. With over 16 years
of experience, Fay has honed her
expertise primarily within the
asset management industry.
Her career journey includes
roles as an equity analyst, multimanager
research analyst and
DFM portfolio manager at
institutions such as Sanlam
Investments, Glacier by Sanlam
and PPS Investments. Notably,
she played a pivotal role in
refining investment-related
processes and launching a DFM
at PPS Investments from 2017
to 2020.

2026 DFM GUIDE - INTERVIEW
frameworks and client engagement models,
thus helping advisors elevate both technical
and business capabilities.
How does the operational relationship and
value-add derived from your strategic
partnership with Mercer work? How does
this global relationship directly enhance
your local and offshore asset allocation,
manager research and tactical views?
Nadir Thokan: Our partnership with Mercer
delivers global research depth and tactical
insights that enhance local and offshore asset
allocation. Mercer’s scale provides access to
world-class manager research, risk analytics and
macroeconomic views, which we integrate into
IS portfolios. Rather than building an in-house
international capability at the scale and depth
that Mercer offers – which would be costly and
time-intensive – we leverage Mercer’s expertise
to deliver institutional-grade solutions and
research to retail clients, ensuring agility and
global best practice. In summary, IS is able
to leverage the depth and resources of the
largest multi-manager in the world, a platform
providing research and/or packaged solutions
as applicable to our client base without having
to invest the significant amount of capital
required to replicate such a platform.
What does your DFM strategy of “Simplify,
Elevate, Multiply” actually entail?
NT: The “Multiply” pillar focuses on accelerating
advisor practice growth through enabling the
advisor to focus purely on the advice process
where they can add the greatest value to
their clients. By staying focused on their core
competence – where they can have the most
meaningful impact – positive client outcomes
are multiplied and the advisor is fully enabled
to take this collectively enhanced proposition
out to the market and grow clients’ assets under
management, and also take on additional
clients that can be efficiently serviced. IS
enables the advisor to focus on their core
advice competence due to its comprehensive
offering across investment research, reporting
functionality, investment implementation and
administration. It is thus aptly named “Multiply”
as the enhanced outcomes for clients are
increased in a non-linear fashion by ensuring
specialists within each part of the value chain
are focusing purely on their core competence.
IS supports IFAs “beyond investment
management” through addressing business
sustainability, succession planning and
long-term growth. Please explain how
you do this in each of these aspects of an
advisor’s business.
NT: IS supports IFAs beyond portfolio
construction by addressing three critical areas:
business sustainability through cost-efficient
platforms and compliance tools; succession
planning via structured book transition
programmes; and long-term growth through
training, technology integration and strategic
partnerships. These initiatives ensure advisors
build resilient practices capable of thriving in a
dynamic regulatory and market environment.
IS also offers a service that evolves as the IFA
practice moves along its life cycle to ensure that
the value proposition is constantly relevant to
the life stage of the IFA practice.
What is the minimum AUM threshold for a
bespoke mandate and at what point in the
investment committee process does the
advisor’s input reach its limit?
NT: For bespoke mandates, the minimum
AUM threshold typically starts at R250-million
converted into model portfolio solutions per
practice, ensuring scale for customisation.
Advisors have a “seat at the table” during
mandate design, suggestions for potential asset
allocation tilts or manager research inputs and
strategic discussions, but their input concludes
before final investment committee decisions,
which remain governed by IS’s fiduciary and
risk frameworks to protect client outcomes.
Where an IFA is implementing model portfolio
or customised unit trust fund of fund solutions
through their own Category 2 discretionary
licence, IS would provide investment consulting
services into the client’s investment committee
structures with the IFA’s investment committee
executing all final investment decisions.
IS has a range of investment offerings from
low-cost passives to niche alternatives. What
is the range of fees that comes with this
offering?
NT: IS offers a spectrum of investment solutions
from low-cost passive portfolios with fees
starting around 0.25% to niche alternative
strategies that can range up to 1.5%, depending
on complexity and underlying asset class.
This tiered structure ensures accessibility for
cost-sensitive clients while catering to those
seeking specialised, high-alpha opportunities
with a higher fee budget. Of course these
various solutions across this cost continuum
can be blended together to create a hybrid
solution as required by any particular IFA client
in line with their stipulated advice process and
client needs.
Nadir Thokan, Senior
Discretionary Fund
Management Specialist at
Investment Solutions by
Alexforbes
BIOGRAPHY
Nadir assumed the role of
head of Investment Consulting
Strategy at Alexforbes in October
2022, overseeing the research
and best practice division.
His expertise covers various
areas, including formulating
default investment strategies
and adapting to legislative
changes affecting investment
strategies. Nadir's insights
assist advisors in optimising
the use of different investment
products for both mandatory
and optional investments. His
work in developing investment
frameworks and solutions has
established him as an integral
member of the Investment
Solutions Discretionary Fund
Management team at Alexforbes,
facilitating the integration of
best investment practices into
advisory services.
37

2026 DFM GUIDE - PROFILE
MitonOptimal
For more than 25 years, MitonOptimal
has partnered with astute financial
advisors to deliver innovative,
independent and client-focused
investment solutions. As a boutique DFM,
we combine disciplined investment
management with adaptable service and
strong operational support, helping advisors
and their clients navigate a changing
financial landscape with confidence.
The mission to success
Our mission is to give advisors peace of mind
through expert investment management
and streamlined support across onboarding,
compliance, reporting and regulatory
processes. Led by a team of experienced
investment specialists, we manage
diversified local and global portfolios,
supported by dedicated professionals
in compliance, operations, marketing
and client relations. This collaborative
expertise enables us to remain resilient
through market volatility and responsive to
regulatory and technological change.
Solutions that hit the mark
Our client-centric investment solutions
are underpinned by a disciplined process
of strategic and tactical asset allocation,
tailored to meet the distinct needs of
advisors, their clients and assets under
management.
Core Model Portfolios
A diverse range of portfolios available via
most local and offshore LISPs.
Hedge Fund Model Portfolios
The ASTUTE range, comprising two
portfolios made up of only absolute return
funds and hedge funds.
Tailored Model Portfolios
Custom-designed solutions in
collaboration with advisors for specific
client needs, accessible on preferred LISPs.
Collective Investment Schemes (CISs)
A variety of CIS options, including bespoke
solutions for specific requirements.
Riaan Maartens, Head of Sales and
Business Development, MitonOptimal
Contact information:
For more details, contact:
• Riaan Maartens, Head of Sales &
Business Development
• Telephone: 072 292 0292
• Email: riaan@mitonoptimal.com
• Website: www.mitonoptimal.co.za
PROVIDING
PEACE OF MIND
FOR OVER 25 YEARS
Proud winner of the Best Servicing Award at the 2025 Citywire DFM Awards
021 689 3579 dfmservice@mitonoptimal.com
www.mitonoptimal.co.za
MitonOptimal South Africa (Pty) Ltd, registration no. 2005/032750/07, is an authorised Financial Services Provider (“FSP”) with license no. 28160.

2026 DFM GUIDE - PROFILE
Optimum Investment Group (OIG)
Optimum Investment Group (OIG)
is a boutique asset manager
headquartered in South
Africa, committed to “growing
wealth for a prosperous tomorrow”. As a
personalised investment management
business, OIG places strong emphasis on
building long-term relationships rooted in
trust, transparency and integrity.
Founded in April 2014, OIG was
established to serve the growing demand
for bespoke, actively managed investment
solutions tailored to clients’ individual risk
tolerances and long-term goals. With over
R16.5-billion in assets under management,
we have the scale to withstand market
turmoil while remaining nimble enough
to act quickly when necessary.
OIG is owner-managed and actively led
by our senior leadership team, ensuring
that decision-makers are deeply engaged
in the day-to-day business. This structure
supports client alignment and reinforces
OIG’s focus on delivering disciplined, riskadjusted
returns.
Award-winning boutique asset manager
OIG has been recognised for its
performance and service in the South
African asset-management industry. OIG
was awarded a Performance Award in the
category “Equity General – South African
Equity” at the Citywire Discretionary Fund
Manager of the Year Awards 2024.
In 2025, OIG was named Overall
Discretionary Fund Manager of the Year
by Citywire South Africa. In addition to
the top honour, OIG also received two
additional accolades – the Overall Service
Award and Best Investment Solutions –
reinforcing our position as a trusted leader
in discretionary fund management. These
awards underscore OIG’s commitment
to delivering consistent outcomes and
servicing its clients with excellence.
Mission, vision and values
At our core, OIG’s mission is to provide
innovative and tailored investment
solutions, leveraging global macrotrends
and thematic investing to deliver
sustainable long-term value, while
Francois Botha, Chief
Investment Officer
Louwrens Smith,
Group CEO
staying firmly client-centric. Our strategy
emphasises rigorous research, active risk
management and transparency.
Our funds and portfolios are tailored
to meet unique investor goals and are
suitable for various time horizons and
risk tolerance levels. We are dedicated
to delivering consistent, risk-adjusted
returns, prioritising our investors’ financial
success and wealth creation.
Investment approach and solutions
OIG offers a diverse suite of investment
solutions across three broad categories:
unit trusts, model portfolios and bespoke
strategies. Within these offerings, clients
access tax-efficient cash products, incomegenerating
portfolios, Shariah-compliant
options and strategic allocation to hedge
funds for enhanced diversification.
We take an actively managed approach,
staying attuned to evolving global
macroeconomic dynamics and thematic
developments – rather than relying solely
on passive benchmarks. OIG believes
that by incorporating thematic investing
and blending it with rigorous valuation
discipline, portfolios can benefit from
emerging opportunities while managing
downside risk. One of our distinguishing
features is our willingness to access
alternative investments – including hedge
fund allocations – within certain portfolios.
• Unit Trust Funds: Pooled investment
vehicles designed for a range of risk
profiles, from conservative cash-like
strategies to higher-risk growth mandates.
• Model Portfolios: Advisor-accessible,
professionally managed portfolios
aligned to risk and return objectives.
These portfolios benefit from OIG’s active
management and thematic insight.
• Bespoke and structured solutions:
Custom portfolios built for specific client
needs. Tax-efficient cash management
accounts, foreign-currency solutions,
structured investments and Shariahcompliant
strategies. OIG also offers
access to hedge funds and alternative
assets, giving clients added diversification.
What sets us apart
What sets OIG apart in the South African
investment-management landscape is
the combination of personalised service,
active management, thematic insight
and alternative allocation capability. The
boutique nature of the business allows for
direct engagement and tailored service,
while the manager’s integration of
hedge funds and thematic overlays offers
differentiated exposure.
Effective 1 October 2025, OIG secured a
40% ownership stake in Obsidian Capital.
OIG and Obsidian Capital continue to
operate as separate entities, allowing
each business to maintain its autonomy,
independent investment teams and
client focus. The strategic partnership
leverages the complementary strengths of
both organisations.
Where to find us
OIG’s client base spans individual investors,
intermediaries and advisors. The firm’s
model portfolios are available through
financial advisors and its unit trusts via
investment platforms. OIG’s headquarters
is in Tygervalley, Cape Town: Unit 209,
The Cliffs Office Block 2, 3 Niagara Way,
Tygervalley 7530. The firm is an authorised
Financial Services Provider (FSP 43488) in
South Africa under the Financial Advisory
and Intermediary Services Act.
Contact information:
For more information, contact:
• Email: info@oig-invest.com
• Phone: 021 879 3630
• Website: www.oig-invest.com
39

2026 DFM GUIDE - PROFILE
Symmetry
Symmetry is a Cape Town-based
investment solutions business
established in 2000, offering
integrated capabilities across:
Discretionary Fund Management (launched
in 2016), multi-managed solutions, best-inclass
single manager solutions, investment
consulting and outsourced CIO services.
Symmetry manages more than R134-
billion in assets and advises over assets
worth more than R300-billion.
Our DFM capability provides IFAs and
their clients with robust, research-driven
portfolio solutions. We deliver off-the-shelf
and customised solutions tailored to each
practice’s needs, supported by a disciplined
investment and manager-research process.
Our scale enables competitive fees, while
our portfolios have consistently delivered
top-quartile performance across all
measured periods.
The right team
Symmetry’s leadership oversees a robust
investment solutions business supported
by strong governance and a disciplined
investment framework. The executive
committee is made up of 80% black
and 60% female members, while the
18-member investment team is made up
of 12 black members and eight women,
averaging nine years of experience.
At Symmetry, we are continuously
increasing allocation to black-owned
asset managers. We are a Level 1 B-BBEE
contributor through Old Mutual. Our
DFM won the Citywire Transformation,
Mentorship & ESG Initiatives award in 2025,
underscoring our commitment to these
principles. Our capability is powered by
dedicated DFM investment professionals
responsible for portfolio construction,
asset allocation and ongoing management.
They are supported by Symmetry’s central
manager research team, which applies
rigorous quantitative and qualitative due
diligence, factor analysis and holdingsbased
testing across asset classes.
A dedicated macroeconomic and
valuation specialist provides insights on
capital-market assumptions, macro trends
40
and SA-specific risks to inform portfolio
positioning. Each DFM partner practice
is supported by a dedicated portfolio
manager and investment team, acting as
an extension of the advisor’s practice.
Our portfolios
have consistently
delivered top-quartile
performance
The ideal client
Our ideal clients are advisors and advisory
firms who want long-term, collaborative
partnerships designed to grow and scale
their businesses, rather than a transactional
outsourced investment service. We work
best with practices that want to focus their
energy on financial planning and client
relationships, while relying on Symmetry
for disciplined investment management,
robust research, macroeconomic insight
and operational execution.
Our value proposition is built around
a comprehensive, seven-step partnership
journey that spans client-need analysis,
strategy curation, customised modelportfolio
design, transition support,
business-growth enablement, corporatisation,
fund creation and succession
planning. Advisors benefit from our investment
expertise, manager research, macroeconomic
guidance, world-class advice
tools, accredited training, tax-optimised
solutions, detailed reporting and ongoing
portfolio monitoring – all designed to
close the advice execution gap and drive
sustainable growth.
We aim to serve as an extension of
each advisor’s practice, partnering with
firms who are ambitious about expansion,
improved efficiency and long-term success.
At your service
Symmetry’s DFM provides a comprehensive
suite of investment services designed
to meet the diverse needs of advisors
and their clients. Our core competencies
include investment consulting, fund
research, macroeconomic research,
portfolio construction and implementation,
forming the foundation of our disciplined
investment process. We focus on delivering
consistent, reliable returns through riskmanaged,
research-driven investing.
We design customised model-portfolio
solutions tailored to each advisor’s practice
structure, client segmentation and strategic
positioning, using a multi-managed
approach informed by detailed clientneeds
analysis. Advisors also gain access
to unique asset classes housed within
Symmetry, including private markets,
hedge funds, alternative strategies, global
funds and more.
Why Symmetry?
Financial advisors choose Symmetry
because we offer a true growth partnership,
powered by the scale and balance
sheet strength of the Old Mutual Group.
This gives advisors institutional-grade
access to world-class strategies and
alternative investments, including private
markets, hedge funds and global funds, all
within Symmetry.
Our Group backing enables continuous
investment in technology, AI-driven analytics
and modern portfolio-construction tools,
supporting a high level of sophistication
for advisors.
Our DFM portal delivers reporting and
insights, while our best-in-class capability,
supported by Russell Investments, and
a dedicated portfolio manager helps
advisors differentiate, scale and deliver
superior client outcomes.
Contact information:
For more details or to explore
partnership opportunities, contact:
• Kim Rassou, Head of Discretionary
Fund Management
• Telephone: 071 460 9168
• Email: Kim.Rassou@symmetry.co.za
• Website: www.symmetry.co.za

2026 DFM GUIDE - INTERVIEW
The right Symmetry
Symmetry provides advisors and their clients with
robust, research-driven portfolio solutions.
Symmetry positions itself as a DFM, yet it
also offers its solutions directly to individual
investors. Is this not a contradiction of
Symmetry’s positioning as a “strategic
partner” of financial planners?
Symmetry is a holistic investment solutions
business with Discretionary Fund Management
as one of its several integrated capabilities.
We operate as a B2B partner to advisors and
institutions, positioned to complement – not
replace – advisor expertise. Advisors remain
the primary channel for customised model
portfolios, transitions, advice tools and business
growth support.
Within our DFM, the seven-step partnership
journey is explicitly designed to enable advisors
to deliver better client outcomes, scale their
practices and deepen client engagement. The
entire Symmetry operating model is specifically
constructed to strengthen the advisor’s value
proposition, not compete with it.
Symmetry also provides non-investment
services to advisors. How are these services
delivered to clients?
Symmetry provides a comprehensive suite of
non-investment services to advisors as part of our
holistic DFM partnership model. As part of Old
Mutual Wealth, we leverage world-class practicemanagement,
business-planning, successionplanning
and M&A advisory services, giving
advisors access to institutional-grade support
traditionally unavailable to smaller practices.
These include business-readiness assessments,
financial-forecasting tools, organisational
design, succession-readiness analysis, indicative
valuations, successor matching, transition
execution and post-deal integration support
through the collaboration of the DFM and
Succession and M&A team.
Symmetry emphasises the importance of
assessing whether an advisor’s client is on
track to meet their objectives and that this is
the lens you use to report on performance.
Please explain how you do this?
Symmetry evaluates each model portfolio
through both risk and return objectives,
measuring performance against its inflationplus
target and relevant peer group to ensure
outcomes remain aligned with client goals. We
set and monitor clear risk-return parameters,
including real-return targets, absolute vs relative
benchmarks, volatility targets, drawdown limits
and risk-budget allocations across asset classes
and investment styles to ensure diversification
and capital protection.
We apply a series of direct portfolio controls
– alignment with SAA and TAA frameworks,
fund-selection limits, explicit risk guidelines,
fee considerations and yield requirements – to
ensure portfolios remain within mandate. At the
same time, indirect controls evaluate effective
market exposure, beta alignment and relative
risk positioning versus the strategic allocation.
Ongoing portfolio management includes
systematic rebalancing, continuous monitoring
of returns and risk metrics and macroeconomic
and valuation reviews to identify short-term risks
or tactical opportunities.
Symmetry offers advisors access to tools and
investment consulting services that enable
better client conversations. Please explain
what sort of tools are provided.
Symmetry equips advisors with a suite of
tools and investment-consulting services that
strengthen client conversations and improve
advice outcomes. Our process begins with a
detailed client-needs analysis, helping advisors
understand each investor’s risk perception,
financial objectives and the nuances of their
advice journey. We evaluate existing assets
– including legacy funds, liquidity needs,
tax wrappers, platform choice and investor
characteristics – to determine whether a
structured transition is required.
Using this insight, we conduct a full gap
analysis to identify weaknesses in the current
investment structure and recommend
appropriate enhancements. We then work with
advisors to select or design the most suitable
investment strategy, supported by our strategicasset-allocation
process and proprietary
advice tools that link directly to the advisor’s
advice framework.
Kim Rassou, Head of DFM,
Symmetry
BIOGRAPHY
Kim Rassou is the Head of
Discretionary Fund Management
(DFM) at Symmetry and has
over 20 years of experience in
financial services, spanning
portfolio management and
analysis, investment solutions,
manager research, asset
allocation, distribution as well
as strategic initiatives. Kim
holds a BCom Honours degree
in Finance from the University of
the Western Cape and an MBA
in Finance from Stellenbosch
Business School.
41

2026 DFM GUIDE - INTERVIEW
Building personal relationships
Edify’s Adam Bulkin believes that building strong personal relationships
with clients is a surefire way to attain success in the DFM industry.
What makes your business distinctive?
Edify’s origins lie in hedge fund management
and our differentiation lies in our deep and
extensive knowledge and skill in alternatives
in general, and hedge funds in particular. In
addition, we have strong skill and experience
in managing offshore portfolios.
Who is your ideal client?
We are a niche, boutique DFM and our ideal
client is therefore one with whom we can
work and enjoy a personal relationship, in a
true partnership. In addition, we are suited to
clients for whom risk management is important
and who are willing to explore the use of
alternative strategies to achieve the benefits of
asymmetry – ie capturing more of the upside than
the downside of a given market, such as equities.
We are suited to clients
who are willing to
explore the use of
alternative strategies
to achieve the benefits
of asymmetry
Who are not your clients?
Edify is a dynamic DFM which tries to work
with a client’s needs and solve their problems
in innovative and flexible ways. We would not
exclude anyone as a potential client.
What role do you believe DFMs play in
improving client outcomes?
Particularly as it relates to hedge funds, we
think that the use of strategies that can control
volatility and drawdown risk and yet still
generate high real returns (the asymmetry of
returns we referenced earlier) can be incredibly
powerful and effective in improving client
outcomes, especially in products like living
annuities, where sequence of return risk is of
critical concern. We have the empirical evidence
to demonstrate this claim.
42
Some argue DFMs are just another layer of
costs for clients. What is your response?
Like any service provider in the investment
industry, DFMs need to be transparent with
respect to fees and costs, and demonstrate to
clients that the value they add justifies the fees
they charge. In some instances, DFMs are able
to command lower fees from fund managers
than if a client invested directly, which would
mitigate the extra fees paid to the DFM.
DFMs enable financial advisors to focus on
engaging with and servicing clients, and allow
them to spend their time on the important
functions an advisor fulfils, while the DFM has
the focus and skill to focus on managing
investment portfolios in a professional,
disciplined and dedicated manner. We would
argue therefore that there is justification for the
fees a DFM charges.
Some have the view that DFMs should have
performance tables like fund managers.
What is your perspective?
We take a nuanced approach. While all
components of the investment industry
require transparency, it is equally true that
a DFM should customise its management
of a client’s portfolio for that client’s needs,
and therefore it may be difficult to make
like-for-like comparisons and achieve the
kind of consistency and standardisation that
performance tables require to be accurate
and effective.
In addition, since DFM portfolios do not
have the same public reporting standards as,
for example, unit trusts, there may be industry
participants who would be tempted to “game”
the system or generate reports which are not
completely accurate or reflective of client
experience. We therefore don’t think there is a
simple yes or no answer.
What are the biggest challenges you see
facing DFMs in the next decade?
In a highly competitive and saturated market,
one of the challenges smaller DFMs face is
achieving growth and critical mass, especially
without the marketing and distribution power
of the larger market participants.
Adam Bulkin, Portfolio Manager,
Edify Fund Managers
BIOGRAPHY
Adam has 20 years of investment
experience. Adam has a BA(Hons)
LLB degree and is an admitted
attorney of the High Court. He
also holds the CAIA designation.
Adam was previously Head of
Global Products at Alexander
Forbes Investments and initiated
the alternatives investment
programme. He later moved
to Sanlam Multi-Manager
International, where he was
Head of Manager Research
and Head of Global Portfolios,
as well as a member of the
Asset Allocation Committee
and the Alternatives Portfolio
Management Committee.

2026 DFM GUIDE - REFERENCE
2026 DFM GUIDE LISTING
This list of DFMs has been supplied by the companies featured. It does not claim to be an exhaustive list
of DFMs, but rather gives an indication of the range of businesses providing DFM services.
2IP Independent
Investment Partners
www.2ip.co.za
2IP is a truly independent DFM with
a proven long-term track record in
delivering above-average returns
across a range of model portfolios
and unit trusts on all the major LISP
platforms. We give IFAs and end-clients
the most valuable resource – more
time to focus on what is important
to them.
Amity Investment
Solutions
amity.co.za
Amity Investment Solutions is an
independently owned boutique DFM
which helps its national network of
independent advisors to differentiate
their advice offering, grow their
business, enhance their client
service and improve overall business
efficiency. We provide advisors with
integrated investment management
tools, client service resources,
personalised support and outcomesbased
investment solutions.
Analytics
www.analytics.co.za
Portfolio Analytics was founded in 2004
through a management buyout from
Investec Asset Management as a privately
owned Discretionary Fund Manager. In
2025, Graviton Wealth acquired a major
shareholding in Portfolio Analytics. As
a group we manage assets in excess
of R80-billion. This strengthens and
broadens our capabilities in providing
bespoke, risk-profiled solutions with
tailored exposure to local and global
financial markets, along with co-branded
model portfolios and advisory support to
independent FSPs.
Apex Investment
Consulting SA
www.apexgroup.com/apex-invest/
investment-consulting-south-africa/
As a key player in the retail multimanager
industry in South Africa,
prominent South African independent
financial advisors, investment managers
and collective investment scheme
managers, along with their retail and
institutional clients, choose investment
management and consulting services
from Apex Investment Consulting SA to
maintain a competitive edge.
Capital International
Group
www.capital-iom.com
With 29 years in business, Capital
International Group is a privately
owned, Isle of Man-based company
offering a suite of digital financial
services including an open architecture
investment platform, asset
management services as well as a
corporate bank through its licensed
subsidiary companies.
Cogence
www.cogence.co.za
Cogence is the world's first DFM
that incorporates multi-dimensional
aspects of financial planning
through its technology to help
advisors manage their clients’ wealth
more holistically. Cogence brings
global investment expertise and
behavioural insights to local advisors
through its collaboration with
BlackRock, RisCura and Vitality
Healthy Futures.
www.cogence.co.za/portal/
gen/legal-and-disclaimers
Edify Fund Managers
edifyinvest.co.za
Edify Fund Managers is an independent,
owner-managed DFM based in Paarl.
We provide tailored investment
solutions, from model portfolios
to bespoke investment consulting.
Leveraging technology, boutique
fund managers and alternative
investments, we aim to deliver
superior risk-adjusted returns while
prioritising exceptional client service.
Our expertise in hedge funds and
global investments sets us apart.
Equilibrium
eqinvest.co.za
Equilibrium provides discretionary
fund management (DFM) services and
investment solutions to help financial
advisers and their clients achieve
their desired investment objectives.
Our unique advice-led local and
dollar-denominated global model
portfolios are designed to be efficient
and optimised through market cycles.
Available on leading LISP platforms,
we offer a proven track record of both
customised and standard solutions to
help meet investors’ goals.
Fundhouse
www.fundhouse.co.za
Fundhouse delivers portfolios shaped
by deep research and careful oversight.
We value relationships, prioritise transparency
and support independent
advisers with solutions that are
unbiased, disciplined and always
in the client’s best interest.
Glacier Invest
www.glacierinvest.co.za
Glacier Invest is a discretionary fund
manager (DFM) – one of the largest
in South Africa – providing holistic
investment and operational support
to financial advisers. As solutions
architects, we build tailored portfolios
to help your clients meet their
investment objectives and needs.
Utilising our skill and scale, we are
able to provide financial advisers like
yourself with an unrivalled and fully
customisable investment proposition
that enhances and enriches the
investment experience for your clients.
Graviton
gravitonwealth.co.za
Graviton is an independent financial
advisory network supported by the
scale and stability of the Sanlam
Group. It offers advice-led investment
solutions, specialist support and
efficient portfolio management that
help advisors strengthen client
43

2026 DFM GUIDE - REFERENCE
2026 DFM GUIDE LISTING
retirement outcomes. Graviton
provides scalable tools, insights and
operational support to IFAs to grow
modern advisory practices across
South Africa.
Harbour Wealth
harbourwealth.com
Harbour Wealth delivers transparent,
cost-effective investment solutions
through disciplined model portfolios
that blend passive equity with active
income. As a reform-driven DFM, we
simplify investing for advisors and
clients, promoting fairness, clarity
and consistent outcomes across a
scalable platform designed to
elevate industry standards.
Hollard Investments
www.hollard.co.za/invest-and-save
Hollard Investments, part of the
Hollard Group, holds FAIS Category
I and II licences and is a Level 1 BEE
contributor. We offer unit trusts,
DFM services, institutional consulting
and an investment platform.
Our team oversees assets exceeding
R25-billion and has delivered
consistent, benchmark-beating
performance across peer categories
over the past decade.
Independent Investment
Solutions
i2solutions.co.za
Independent Investment Solutions is an
independent, multi-asset discretionary
investment manager providing
professionally constructed wrap fund
solutions to financial advisors. Using
rigorous quantitative and qualitative
analysis, we deliver transparent,
diversified and risk-aligned local and
offshore investment solutions across
major platforms, helping advisors
offer clients consistent performance,
reduced single-manager risk and
streamlined reporting.
INN8 Invest
inn8.co.za
INN8 Invest is an independent DFM
for the wealth manager of the future
that places global, best-in-class
44
expertise at your fingertips. We aim
to inspire advisor confidence, grow
client portfolios and facilitate business
growth. We understand that solutions
should be designed to meet the everchanging
investment needs of South
African investors. By putting
the advisor at the centre of our
process, we make sure that we
build future-focused investments
designed to deliver superior
client outcomes.
Investment Solutions
by Alexforbes
investmentsolutions.alexforbes.com
Investment Solutions is an independent
discretionary fund manager
backed by Alexforbes’ scale and
expertise. With R696-billion in assets
under management and administration,
we empower independent financial
advisors by streamlining investment
processes, offering tailored solutions
and providing access to global
opportunities – helping you
enhance your service and make
a greater impact.
Mentenova
www.mentenova.co.za
Mentenova is an award-winning
financial services group dedicated
to providing goals-driven investment
solutions tailored to individual
needs. With a focus on innovation,
independence and integrity,
we prioritise understanding your
long-term objectives to maximise
investment success and reduce
stress in managing your
financial future.
MitonOptimal
www.mitonoptimal.co.za
MitonOptimal is an independent,
owner-managed Discretionary
Fund Manager dedicated to
providing investment solutions
and support that help advisors
meet their clients’ financial objectives.
We offer a range of strategies
designed to suit each advisor’s
unique requirements, assets under
management and client base.
Morningstar Investment
Management South Africa
www.morningstar.com/en-za/
products/investment-management
Morningstar’s investment management
capabilities give advisors and their
clients access to unparalleled depth
and breadth of research. This means
having the peace of mind that we’re
able to pinpoint specific sources of
returns across an unmatched range of
investment opportunities for you and
your clients. This enables us to build
portfolios of the very best investment
opportunities designed to work together
to achieve your clients’ financial goals.
Mosaic Investment
Consulting
mosaicinvestments.co.za
Established in 2015, Mosaic Investment
Consulting provides independent
investment advice to institutional and
retail clients across South Africa. 51%
black-owned and a level 2 B-BBEE
contributor, Mosaic advises on over R50-
billion in assets, including retirement
funds and model portfolios for independent
financial advisors, with offices in
Cape Town and Johannesburg.
Multivest Asset
Management
www.multivest.co.za
Multivest Asset Management is an
independently owned financial services
business, offering specialist investment
management and asset consulting to
financial advisors. We offer discretionary
portfolio management aligned to
specific investment objectives, while
we help financial advisors grow their
business and assist with prudent
investment choices for their clients.
Naviga Solutions
www.naviga.co.za
Naviga Solutions offers an extensive
range of more than 20 portfolios
across 11 platforms, catering for
all risk profiles. We offer innovative
post-retirement solutions focused on
income security, while our range also
covers direct offshore investments, taxfree
savings and hedge funds.

2026 DFM GUIDE - REFERENCE
We provide a paraplanning service
through a team of experienced CFPs and
quarterly reporting at investor level.
Optimum Investment Group
oig-invest.com
Optimum Investment Group (OIG) is an
award-winning boutique asset manager
delivering tailored, actively managed
investment solutions. Committed to
“growing wealth for a prosperous
tomorrow”, OIG prioritises long-term
relationships built on trust, transparency
and integrity, combining personalised
service with disciplined, client-focused
portfolio management.
PortfolioMetrix
www.portfoliometrix.com
PortfolioMetrix partners with institutional
allocators and top financial
advisors to deliver precision-engineered
portfolios supported by proprietary
technology. Our role is to give financial
professionals the clarity and capacity
to focus on the areas where they create
the greatest long-term value, for both
their clients and their businesses.
Our investment discipline provides
consis-tent results, while our tools
support suitability, governance and
efficiency. We manage over R115-billion
in assets and have offices in London,
Johannesburg, Dublin, Cape Town
and Durban.
Ramsey Crookall
ramseycrookall.com
Ramsey Crookall is the Isle of Man’s
longest-established independent
stockbroking and investment firm,
offering offshore discretionary model
portfolios to South African advisors. Our
Baobab Models provide professionally
managed, risk-aligned global solutions
using independently selected funds,
delivering long-term, diversified
investment strategies designed to
preserve and grow client wealth.
Rutherford Asset
Management
rutherfordam.co.za
Rutherford is an independent DFM
specialising in model portfolios that
blend world-class managers and funds
into risk-adjusted portfolios which are
available on all major SA platforms.
Our portfolios combine well-diversified
asset classes and manager styles with
disciplined rebalancing and have
achieved enviable returns for more
than 10 years.
SA Asset Management
saassetmanagement.co.za
SA Asset Management is an
independent investment partner
specialising in discretionary fund
management and fund consulting
solutions for financial advisors.
Established in 1995, we also offer
hybrid solutions, private client
portfolios and cash management,
focusing on transparent
communication, disciplined
investment processes and long-term,
risk-adjusted outcomes.
Seed Investments
www.seedinvestments.co.za
Seed Investments is an award-winning,
high-conviction multi-manager
delivering expertly curated DFM
solutions backed by deep research,
institutional-grade risk management
and full transparency. As Your
Investment Solutions Home within
a trusted ecosystem, our solutions
do exactly what they are meant to
do over their intended horizons,
offering consistency, confidence and
dependable outcomes for IFAs and
their clients.
Sequoia Investment
Solutions
www.sequoiainvest.co.za
At Sequoia Investment Solutions,
we help you navigate the
complexities of investment
management – delivering strategic,
diversified and resilient solutions
for sustainable growth. The relationship
between the DFM, advisor and
client is of paramount importance in
understanding the needs of the client.
Our DFM service model offers portfolio
management, portfolio reporting and
consolidated client reporting.
STAR Investment Partners
www.starip.co.za
STAR is a hybrid DFM, partnering with
financial advisors to integrate business,
investment and client advice needs
into sustainable local and global
portfolio solutions. We’re platform,
fund and management style agnostic,
incorporating active, passive and
alternative assets. As a hybrid DFM, we
may include STAR-managed unit trusts
in portfolio solutions.
STRATEGIQ Capital
www.strategiq.co.za
STRATEGIQ Capital is a leading
independent DFM with offices in Cape
Town and Johannesburg. With nearly a
decade of proven success, we deliver
innovative, research-driven investment
solutions. Our client-first philosophy,
advisor-focused tools and commitment
to long-term value empower financial
advisors and investors to achieve
optimal outcomes in a complex
financial landscape.
Symmetry
www.symmetry.co.za
Symmetry’s Discretionary Fund Manager
offers a full-service, partnership-driven
investment experience designed to
support both client outcomes and
advisor growth. Through disciplined
research, asset allocation and portfolio
construction, we deliver investment
solutions that are available across major
LISP platforms. Our solutions evolve
with your clients’ needs, helping you
focus on what matters most: time with
your clients and growing your practice.
The Robert Group
www.robertgroup.co.za
TRG Private Wealth empowers financial
advisors with innovative Discretionary
Fund Management (DFM) solutions
since 2014. Our award-winning,
globally scalable funds and bespoke
tools save time, reduce risk and
enhance client outcomes. Partner
with us to strengthen your practice,
deliver tailored investment strategies
and achieve long-term success in a
dynamic financial landscape.
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OPTIMUM INVESTMENT GROUP