Advisers Rethink Investment Strategies as Market Complexity Intensifies

Cape Town – South African financial advisers are under increasing pressure to deliver consistent client outcomes in an environment defined by heightened volatility, shifting market dynamics and growing investment complexity.

This is a key theme emerging from the INN8 Invest Synergy of Investment Success Summit, where industry leaders, advisers and investment professionals gathered to unpack the forces reshaping the advice landscape.

In his keynote address, Joao Frasco Chief Investment Officer at INN8 Invest, highlights the extent to which the traditional rules of investing are being tested, with familiar strategies no longer delivering predictable results.

“Markets are no longer behaving in predictable ways, and the margin for error has narrowed,” said Frasco. “Diversification is not always providing the protection investors expect, correlations are shifting, and the global opportunity set is becoming more complex. This requires a far more deliberate and disciplined approach to portfolio construction.” Frasco notes that outperforming benchmarks is no longer sufficient on its own, as advisers are increasingly required to focus on delivering real, outcome-based returns for clients in uncertain conditions.

At the same time, advisers are navigating rising client expectations alongside the operational demands of running their practices, creating a need to rethink how investment decisions are made and implemented.

Against this backdrop, the role of discretionary fund managers (DFMs) is becoming more central to how advisers operate.

According to Leigh Kohler, the Head of Discretionary Fund Managers at INN8 Invest, this shift reflects a broader evolution in the advice model, moving from product-led solutions toward more integrated, partnership-driven approaches.

“Advisers are balancing increasingly sophisticated client needs with the complexity of managing portfolios in volatile markets,” said Kohler. “Partnering with a DFM enables them to access specialist investment expertise while focusing on their core role of advising clients and building long-term relationships.”

Kohler adds that the relationship between advisers and DFMs is evolving beyond traditional outsourcing toward a more collaborative model focused on shared accountability for client outcomes.

“This is not about handing over responsibility, it’s about combining strengths. Advisers bring deep client insight, while DFMs bring portfolio construction expertise. Together, this creates a more robust and resilient investment approach,” says Kohler.

Discussions at the Summit also point to a broader shift in how portfolios are constructed, with greater emphasis on navigating uncertainty, managing downside risk and aligning strategies more closely with long-term client objectives.

“The environment we are operating in demands clarity, conviction and consistency,” said Frasco. “Those who are able to translate complexity into practical, outcome-focused strategies will be best positioned to support clients through this cycle.”

The Summit brings together leading voices from across the investment industry, with discussions spanning global and South African multi-asset strategies, evolving adviser needs and the future of portfolio construction.