INN8 Invest Summit: Exploring the future of investments

Technology is shaping the world like never before, and the investment industry is in the midst of this change. At the INN8 Invest Summit held at the Gallagher Conference Centre on 18 September, delegates were invited to consider the future of investments, and technological innovation was a constant theme.

The annual event, attended by over 1 000 advisers, wealth managers and consultants delivered insights from 31 top local and global investment professionals. “The role of technology is one of the biggest themes in the investment landscape,” STANLIB CEO Derrick Msibi told attendees. “How technology is going to shape how we run money, and how we run our businesses from an operational and efficiency point of view is something we think about every day.”

AI and technology reshaping investment management

Artificial intelligence (AI) is at the centre of these considerations – and particularly how investment teams can use the technology to improve outcomes for clients. “The challenge is working out what exactly is the thing that the human should be doing, and what the machines should be doing,” Msibi said. “Maybe AI is best at the things we don’t enjoy doing, like collating data. But the interpretation of that data is the skill that is going to be most valuable.”

This is equally true in the world of investment advice. Yuresh Maharaj, CEO, Insurance and Asset Management at Standard Bank told delegates that building relationships is a human skill with timeless value offered by financial advisers. But the promise of technology is the ability to deliver individualised services to support these relationships.

Hyper-personalisation in financial advice

Hyper-personalisation of advice by using AI to deliver information and solutions for specific clients offers exciting potential in this regard. “How do you future proof relationship building?” Maharaj asked. “That comes with combination of leveraging technology and mentoring the next generation of advisers for the future. A combination of those two will be powerful ingredients for success.”

Of growing importance is the ability of advisers to partner with discretionary fund managers (DFMs) that support them through providing investment services and business support, allowing advisers to focus on building relationships with their clients.

The role of Discretionary Fund Managers (DFMs)

“We’ve seen a massive increase in DFMs in the last decade, specifically to help advisers deal with the growing noise in markets,” said Leigh Kohler, Head: DFM at INN8 Invest. A recent survey conducted by Asset TV found that 70% of independent advisers in South Africa now use a DFM. And a majority of those are choosing services offered by DFMs associated with large institutions.

“As noise has increased, the peace of mind of belonging to a larger group has become more important,” Kohler said. “Advisers have shown a preference for choosing a partner that is part of a broader group.” INN8 Invest has shown the skill to customise solutions to specific clients, the expertise to deliver long-term outperformance, and the resources to provide technological innovation.

“Service and support are critical for us, and we do this through our power of three,” Kohler said. “Our pedigree of a long-term track record and an experienced investment team; our power to scale up due to our support from Standard Bank; and the partnerships we form with advisers.”