Discovery Launches Cogence: South Africa’s First Global Discretionary Fund Manager

Discovery Group has launched Cogence, the first global discretionary fund manager in South Africa, aimed at enhancing wealth creation through advanced asset allocation insights from BlackRock and personalized data from Vitality. Utilizing Aladdin Wealth™ technology, Cogence provides innovative investment solutions and supports financial advisors in addressing their clients’ complex financial needs, particularly related to retirement planning.

Discovery Group has launched Cogence, South Africa’s pioneer global discretionary fund manager (DFM), aiming to transform wealth creation practices in the country. By leveraging BlackRock’s asset management expertise alongside Vitality’s personalized insights, Cogence offers innovative investment solutions such as model portfolios. Enhancement occurs through the implementation of Aladdin Wealth™ technology, renowned for its robust portfolio analytics and risk assessment capabilities.

The motivation for entering the DFM sector, as articulated by Discovery Group’s Chief Executive, Adrian Gore, stems from the notable evolution in investment markets and the rising trend of local investors seeking global opportunities. With recent regulatory developments allowing pension and mutual funds to allocate 45% of assets offshore, South Africans now have enhanced capabilities to diversify their retirement savings significantly. Gore stated, “Research and understanding of risks and the opportunities that global markets present is crucial.”

Cogence’s structure integrates BlackRock’s comprehensive global asset allocation strategies with distinctive health and longevity metrics from Vitality. This innovative approach supports financial advisors in tailoring financial plans to accommodate individual client circumstances effectively. Kenny Rabson, CEO of Discovery Invest, emphasized the complexity of future financial planning, noting the necessity of technological tools to model the implications of various factors on retirement provision.

The collaboration with BlackRock aims to grant local advisors access to cutting-edge Aladdin Wealth™ technology, enabling a holistic overview of client portfolios and analytics for refined investment strategies. BlackRock’s EMEA Head of Wealth, Andrew Keegan, expressed pride in partnering with Discovery to integrate their global asset allocation insights into the local financial landscape.

In conjunction with BlackRock, Cogence is also backed by RisCura, a respected South African investment firm known for its extensive local expertise and thorough analytical capabilities. Andrew van Biljon, Head of Investment Management at RisCura, remarked on their shared commitment to catering to South African investors’ needs for exceptional returns.

The expansion of complexities within the asset management industry necessitates that financial advisors utilize managed solutions to alleviate compliance risks and streamline processes. Adrian Gore concluded, emphasizing the significance of combining behavioral science with investment expertise to furnish advisors with insights that enable optimal retirement outcomes for clients.

Cogence is poised to redefine the asset management landscape in South Africa through its innovative integration of global insights and local applicability, ultimately promoting improved financial outcomes for investors.

Discovery Group’s establishment of Cogence represents a significant advancement in the South African financial services sector, particularly in discretionary fund management. With the recent amendments in regulations allowing enhanced offshore investments, local investors now face the complexities of a sophisticated global market. The collaboration between Discovery and BlackRock seeks to simplify these complexities while maximizing client investment opportunities through tailored solutions. The combination of global asset allocation insights with personalized health analytics aims to create a unique framework for financial advisors, addressing the increasing challenges of asset management in an evolving landscape. With rising life expectancies and shifting economic circumstances, understanding these dynamics becomes critical to fostering sustainable financial health for individuals preparing for retirement. The partnership with RisCura further solidifies Cogence’s commitment to blending local expertise with global knowledge, responding to the growing demand for innovative financial planning solutions.

The launch of Cogence marks a transformative step in South Africa’s wealth management sector, combining global asset management expertise with local insights to enhance investment outcomes for clients. By leveraging advanced technology and behavioral data, Cogence aims to address the complex financial needs of South Africans, particularly involving retirement planning. The collaboration between Discovery, BlackRock, and RisCura emphasizes a commitment to offering comprehensive investment solutions, thereby empowering financial advisors and their clients in navigating the increasingly intricate landscape of asset management.

Original Source: www.mynewsdesk.com