HEARD on the street
SANLAM LAUNCHES AI FUND
Sanlam Global Investment Solutions (SGIS) has launched a fund which is solely managed by artificial intelligence (AI). Sanlam says its Managed Risk Ucits Fund is now the first balanced fund in the world fully driven by AI and machine learning (ML).
David Itzkovits, head of investments for SGIS, said: “The goal at SGIS was to find a solution that can adapt as quickly as the markets change. Our AI capability does this by applying the latest ML techniques that have multiple years of live operational experience and a real, impressive track record.
“The AI investment engine derives its decision making in a different way to other investments and should be viewed within a client’s overall investment strategy as a diversifier of existing human manager risk.
“Because, in today’s world, it’s not man vs machines, it’s man with machines vs man without.” The launch of the fund comes after the launch of independent robo-advice platform itransactGo in South Africa earlier this year.
MILLENNIALS KNOW BETTER?
Statistics from Deloitte’s latest annual Global Millennial Survey reveal that 71% of South African millennials (those reaching young adulthood in the early 21st century) believe they’ll be better off financially than their parents.
According to Nico Coetzee, executive of PPS Financial Planning, millennials can be characterised as eternal optimists and value the ability to manage their own finances by using technology, especially from their mobile devices.
“In addition, they are open to financial offerings from non-financial brands and they are very likely to visit a financial services company’s social platforms for relevant content and advice. This generation is also very hungry for educational information and influential content, such as customer reviews, expert commentary, thought leadership and product or service information.”
However, Coetzee points out that the young still make money mistakes, including not purchasing income protection, postponing saving for retirement till when they reach their 30s and over-relying on friends and technology for advice, which could lead to financial losses.
FSB AND FPI UNEARTH EXAM FRAUD
Following an investigation, the Financial Services Board (FSB) found that certain Financial Planning Institute (FPI) employees and candidates were involved in a dishonest scheme that resulted in the falsification of their examination and or qualification results and the issuance of fraudulent certificates.
The qualification and examination fraud was initially discovered and investigated by the FPI, which referred the matter to the FSB to take action against a large number of individuals. Following the FPI’s investigation, criminal charges were laid against implicated FPI employees.
The FSB was informed about the scheme in 2014 and launched an investigation to gather evidence against 120 representatives and key individuals. Debarment action commenced in 2015 and is ongoing with at least 60 cases still under way, said the FSB in a statement.
The FSB added that it audited the FPI examination body’s internal security measures, systems and processes. It then recommended additional security protocols to prevent this type of fraud from recurring.
The recommendations have been adopted and implemented by the FPI.