BLUECHIP2025 DFM GUIDE -
BLUECHIP2025 DFM GUIDE - PROFILEAmity Investment SolutionsAmity Investment Solutions isa boutique DFM that helpsindependent advisors to enhancetheir professional investmentadvice offering to clients. The company,which was founded in 2007, is anindependently owned business basedin Pretoria. Today, the company serves anetwork of independent advisors acrossSouth Africa with over R10-billion in assetsunder advice.Our comprehensive offeringWe help independent advisors todifferentiate their advice offering, growtheir business, enhance their client serviceand improve overall business efficiency.We provide advisors with integratedinvestment management tools, clientservice resources, personalised supportand outcomes-based investment solutions.This ensures that each client has a clearfinancial roadmap and suitable investmentstrategies with the highest probability ofachieving their goals.In addition, our end-to-end investmentmanagement proposition enhancestheir financial wellbeing throughoutthe investment journey and delivers anoverall advice experience which theyvalue. Advisors benefit by having moretime to grow their client base and serviceexisting clients thanks to evidence-based,well-researched and actively managedinvestment solutions. This reducesthe advisor’s advice risk, improves theprofessionality of their offering, makesmanaging their clients’ investments moreefficient and enhances the value delivered.Outcomes-based investmentsOur outcomes-based investment philosophyis rooted in the belief that investment adviceshould not only focus on the numbers butshould enhance a client’s financial wellbeingthroughout the investment journey. Withthis philosophy as the advisor’s valueproposition, a behaviourally integrated,life-centred financial planning approachis required and the investment solutionimplemented should ensure that it has thehighest probability of success.Our outcomes-based investmentsolutions are managed to enhance thepredictability of investment results overspecified rolling time horizons. Our processfocuses on constructing asset allocationswhich maximise consistency in deliveringspecified outcomes within an activelymanaged risk budget and combiningbuilding block specialist managers thatcomplement each other to create asmoother return profile.Cornerstones of investment solutionsTo achieve high levels of success, the fourcornerstones of our outcomes-basedinvestment solutions remain our focus.Proprietary quantitative analysis is firstlyapplied in both the design of the differentmandates and in evaluating building blockmanagers used for implementation. This isfollowed by in-depth qualitative researchand continuous manager due diligence.The portfolios are actively managed andregularly reviewed to ensure they arealigned with the latest market conditionsand asset class valuations.Our extensive range of building blockmodel portfolios, available on mostplatforms, are designed to either enhanceincome sustainability or deliver morepredictable capital growth. Our range ofinvestment solutions also includes a hedgefund model and direct offshore models. Insome cases, we develop bespoke solutionsfor certain FSPs using our outcomes-basedcriteria and process.The right expertiseOver the years, a dedicated team of highlyskilled professionals has joined AmityInvestment Solutions, all united by onecommon goal: to create value for bothinvestors and our advisor partners. Our teambrings expertise in wealth management,investment management, businessmanagement, coaching, administrationand compliance.Amity is purposefully a boutique DFM,designed to serve like-minded advisors whoare committed to enhancing the financialwellbeing and value they provide to clients.Just as advisors are limited in the number ofclients they can support with an extendedadvice offering, we can only work with aselect group of advisors, providing them withour comprehensive services. By focusing ourresources on supporting our advisor partners’businesses, we ensure our interests arealigned, enabling mutual growth.Contact informationIf you want to find out how we canhelp you deliver more value to yourclients, contact:• Ingrid Breed, Advisor ExperienceManager• Telephone: 082 404 4633• Email: ingrid@amity.co.za• Website: www.amity.co.za16
2025 DFM GUIDE - INTERVIEWBLUECHIPResearch and transparencyreigns supremeMarius van der Merwe, a founding member and CEO of Amity InvestmentSolutions, explains the company's unique approach as a DFM.What makes your business distinctive?What sets Amity apart is that we are intentionallya niche market DFM. Rather than trying to serveeveryone, we focus on partnering with likemindedindependent advisors who prioritiseguiding their clients towards long-term financialwellbeing. To support this, we provide advisorswith an end-to-end investment managementsolution, including a goals-based investmentplan, suitability assessment and review plan.Additionally, we believe that traditionalinvestment strategies are not well-suited to theneeds of private investors. Achieving consistent,predetermined outcomes is critical for a financialplan to succeed and achieve clients’ goals.Who is your ideal client?We have built a community of like-mindedadvisors who value their independence andare always seeking ways to enhance the valuethey provide. They typically have a growthmindset and are dedicated to improving theirservices by integrating behavioural factors intotheir approach to achieving financial wellbeing.The advisors we partner with have a clearunderstanding of the value they bring to clients,which is managing the clients’ financial journey.By outsourcing investment management to us,our advisor partners strengthen their investmentoffering, thus freeing up time to improve clientservice and boost efficiency.What role do you believe DFMs play inimproving client outcomes?Research shows that clients expect more thanjust investment solutions from advisors; theyseek guidance that helps them live their bestlife and achieve overall wellbeing. Clients arewilling to pay more for this type of advice. Tomeet these expectations, advisors must evolvetheir approach from simply conducting aneeds analysis and recommending products tooffering a comprehensive financial plan servingas a tailored roadmap to financial wellbeing.We believe a DFM plays a crucial role inensuring the desired outcomes are achieved byimplementing an evidence-based investmentstrategy. This requires ongoing research, duediligence and active portfolio management.Some argue DFMs are just another layer ofcosts for clients. Your response?It’s possible for a DFM to merely put a fewmulti-asset funds into a model. However, webelieve real value is added when the modelis continuously researched and activelymanaged. That is why we believe in a buildingblockapproach. We play an active role inconstructing evidence-based portfolios withspecific outcomes in mind. This approachenables us to actively manage asset allocationwhile selecting complementary building blockmanagers for each asset class. It also allows us tomanage the portfolio’s risk budget effectively.By combining passive and active managers,hedge funds, and managing both local andoffshore allocations, we tailor the portfolio tomeet each mandate’s criteria.Some have the view that DFMs should haveperformance tables like fund managers.Your perspective?We publish our performance as measuredagainst the four pillars of our outcomes-basedstrategy. We believe in transparency. Wepublicly report both the absolute and relativeperformance measure. However, one must becareful to not only measure a DFM’s value interms of relative performance. The questionshould be: is the DFM delivering the investmentoutcomes it set out to do…What are the biggest challenges you seefacing DFMs in the next decade?Although I know DFMs add value, it cannot onlybe measured by investment returns. The biggestchallenge for DFMs is to demonstrate the valuethey add beyond returns to the end client.Marius van der Merwe, foundingmember and CEO, AmityInvestment SolutionsBIOGRAPHYMarius is a founding memberof Amity Investment Solutionsand the chief executive officerof the company. As the authorof Amity’s goals-based valueproposition he continuouslyresearches financial planning andinvestment trends to ensure thecompany is at the cutting edgeof delivering financial wellbeingto investors. Marius has morethan 25 years’ experience in thefinancial services industry. Heholds a BCom (Hons) degree andis a Certified Financial Planner(CFP®). He recently completedhis thesis for a MPhil degree withthe title “The determinants offinancial wellbeing”.17
