How a new investment house is simplifying the traditional investment approach
Behavioural finance seeks to combine behavioural and cognitive psychological theory with conventional economics and finance to provide explanations for why people make sometimes misguided financial decisions.
So what does this have to do with your investments? Because, it is only human to have emotional reactions to portfolio volatility, whether it be fear and anxiety to losses, or confidence and elation to gains.
Our decision-making processes employ emotional filters to process inputs from situational dynamics, and probability estimates to assess and predict outcomes. In short, we use our emotions as "shortcuts" to trim time from analysis and to make ourselves more comfortable — a process that has major pitfalls. Traditional finance assumes that cognitive biases play no role in the decision-making processes of human beings — apathetic about the most important decisions in our lives. But a truly independent and trusted advisor understands that human beings are complex, emotional creatures who are actively engaged in their own financial management beyond status reports, right down to decision-making. Enter, investment consulting firm - Celerity Investments.
Started in 2017 by three Certified Financial Planners (CFP® professionals) from BDO Wealth Advisers, whose experience goes back over 20 years, Celerity’s team saw their clients lives and needs changing and noticed that the investment consultants they were using, either, complicated the process, were not truly objective for their clients, or that their they didn’t do constant research to provide their clients with swift guidance on their investments and future.
It was time to evolve.
“At Celerity Investments, our client’s future is our passion,” says Johan Roux, Managing Director of Celerity Investments. “Our investment consulting model is focused on swift and proactive implementation, independence, research, and risk management – the three elements we believe are essential to steadfast investment success.”
Our emotional reactions to choices relating to our finances may lead us to make misguided decisions or outright disastrous ones. That is why it is imperative to get swift guidance and advice that is relevant and tailored specifically to you, your needs, and your life circumstances. “People are emotional and unless you are able to research previous fund performance or watch funds on a constant basis you won’t have the context to make impartial financial decisions. As an investment consulting firm we hope to simplify the process for our investors and provide them with the relevant perspective so they can stay focused on their future.”
“Cost-effective implementation, objective portfolio construction, and risk management of portfolios through hands-on fund monitoring and research, are all based on the individual needs of each client – at Celerity Investments everyone is unique. That is why we work in partnership with independent financial planners, who guide us on investors unique needs, and trusted independent asset consultants, who are independent from the planners ensuring they focus on achieving consistent outcomes relevant to you,” continues Roux.
To achieve this result, Celerity Investments turned to independent research consulting company Analytics, who has a 14-year track record in providing independent and trusted investment portfolio construction.
“Between our Financial Planning experience and Analytics’ investment portfolio history we believe we are giving the client the best of both worlds. The focus of our investment consulting is on ensuring a truly reliable financial future for our investors, based on their lives and the environment in which they live.”
Celerity Investments will always work in conjunction with independent financial planners to implement suitable investment solutions for investors and clients. Celerity has currently accredited BDO Wealth Advisers as an approved financial planner. Any professional and independent financial planning business in South Africa can approach Celerity Investments for accreditation as an approved financial planner.
Through Analytics, Celerity Investments will be focused on monitoring and pro-active management as this will safeguard costs incurred – trading costs, expense ratios, taxes. “We want every bit of money an investor puts in to be maximised to reach their goals,” concludes Roux.
Visit www.celerityinvestments.co.za for more information.
Celerity Investments (Pty) Ltd is licensed Financial Services Provider (FSP number 47650)