Navigating the shifting asset management landscape

Cogence, South Africa's first global discretionary fund manager, has garnered attention due to its unique partnership between Discovery and BlackRock. The collaboration brings together the expertise of Discovery, known for its behavior change platform, and BlackRock, the world's largest asset manager. CNBC Africa recently sat down with Cogence CEO Jonel Matthee-Ferreira to delve into the partnership and gain insights into current investment trends. Matthee-Ferreira highlighted the powerful partnership with BlackRock, particularly emphasizing the support from BlackRock's multi-asset strategy and solutions team. This collaboration allows Cogence to leverage resources from the BlackRock Investment Institute, tapping into the expertise of central bankers and economists to create capital market assumptions. The partnership enables Cogence to craft a long-term strategic asset allocation view and position portfolios to achieve desired goals. Additionally, BlackRock's robust risk teams aid in assessing current portfolios and stress-testing them for potential market scenarios, ensuring prudent risk management for clients. Speaking on the incorporation of behavioral finance concepts into Cogence's offerings, Matthee-Ferreira highlighted the focus on wealth creation disruption through behavioral factors. Leveraging insights from Discovery's vitality program, Cogence aims to encourage small behavioral changes that contribute to healthier and more financially secure retirements for clients. This innovative approach sets Cogence apart in the industry, integrating behavioral considerations alongside traditional investment strategies. In terms of global market trends, Matthee-Ferreira touched on key themes such as the upcoming US election, persistent inflation, and geopolitical tensions. Despite the uncertainties, Matthee-Ferreira pointed out favorable opportunities in markets driven by trends like AI adoption and broad-based market recovery. Cogence remains cautious yet optimistic, capitalizing on strong market fundamentals and strategic sector investments. The CEO emphasized the importance of staying nimble to seize opportunities arising from evolving market dynamics. In response to market uncertainty, Cogence has allocated a percentage of its portfolios to gold as a diversification strategy. While acknowledging gold's recent price surge, Matthee-Ferreira highlighted the enduring value of gold as a hedge in uncertain market conditions. The insightful conversation with Janel Matthee-Ferreira shed light on Cogence's strategic approach to asset management amidst a dynamic global landscape. The partnership between Discovery and BlackRock, coupled with a behavioral finance focus, positions Cogence as a forward-thinking player in the investment industry.