Old Mutual Wealth (OMW) South Africa has announced a strategic collaboration with Bravura, a leading financial services technology provider to the asset and wealth management communities, to enhance its Discretionary Fund Manager (DFM) functionality of its Linked Investment Service Provider (LISP) platform.
The partnership aims to revolutionize the services and technology available to DFMs in South Africa. Designed specifically for the funds markets, the adoption of Bravura’s technology will enable Old Mutual Wealth’s LISP platform to reduce operational overheads and improve efficiencies, while helping to reduce the regulatory burden for DFMs. This is delivered by automating a variety of business processes and facilitating real-time data analysis, allowing DFMs to enhance reporting, respond quickly to market changes and increase agility in making investment decisions.
The software is delivered through two of Bravura’s microservice solutions, MPS (Model Portfolio Service) and SSAD (Single Source Asset Data), giving DFM’s the ability to create and manage investment models, including bulk re-balancing and reporting, without the need for Old Mutual Wealth to re-platform. This, combined with enabling the creation and management of portfolios more efficiently, further reduces risk and better bridges the gap between advisers and DFMs.
Bravura’s microservice technology is already being used directly by DFMs in the UK following the Financial Conduct Authority’s Retail Distribution Review in 2012, meaning Old Mutual Wealth and its partners will benefit from its market-proven technology and maturity. As the software continuously evolves and updates, it will also enable additional features and benefits, such as self-servicing, that allow quick and seamless rollouts in the future.
Stephan De Kock, Chief Operating Officer at Old Mutual Wealth, said: “Our DFM proposition is seeing significant growth as greater numbers of advisers look to outsource their investment capabilities. The partnership and microservices delivered by Bravura provide us with the opportunity to further cement our position as a leading wealth manager in South Africa.”
“Ultimately, this partnership will help to improve efficiency on our platform, making model portfolio rebalancing easier and faster, while reducing risk. This is at the heart of our philosophy of creating client-centric experiences for our advisers and clients”, concludes De Kock.
Rory Taylor, Country Head South Africa, Bravura, added: “Whilst upcoming changes to South Africa’s regulatory framework are undoubtedly causing operational challenges for some firms, it is also creating opportunity for others who are committed to using new and emerging technology to create a competitive advantage and better support their end investors.”
“By applying the lessons we’ve learnt from successful microservice deployments across the globe - including the UK which is several years ahead of South Africa in its RDR rollout - Old Mutual Wealth will be able to build on its leading position in the DFM market and further enhance its client experience and adopt new features and benefits without the need to re-platform.”