Findotec launches with R500m in assets under management, using math to drive smarter investing

South Africa’s investment industry has a new player that has already built some serious momentum. Findotec has officially launched as a fully independent fund manager, licensed as a Category II Financial Services Provider, debuting with more than R500 million assets under management.

“Too many South Africans fall victim to what I call investment inertia,” says Pedri Reyneke, Fund Manager of Findotec. “Financial advisors often place clients into funds and then leave them there, even when performance falters. But this ‘set and forget’ approach erodes their long-term returns.

“Findotec was specifically designed to prevent that. Our model is driven entirely by mathematical formulas and performance data, with capital continuously reallocated into the underlying assets of the strongest performing funds in the country rather than being left stagnant.”

At its core is a quantitative momentum strategy supported by artificial intelligence. Its proprietary algorithm draws on Nobel Prize-winning research and established statistical models to guide investment decisions, continuously analysing and ranking investment options. This process is systematic and ongoing, eliminating personal preference, sentiment, or marketing influence.

“Fund selection should never be shaped by who shouts the loudest or who has the most familiar brand rather than who delivers results. We deliberately avoid that with a mathematically disciplined approach, so that investors can feel confident that their investments are driven by performance rather than marketing or loyalty. In simple terms, with Findotec, you back the best horse every time.”

It currently operates three separate funds under its umbrella, each simply named for investment horizon, namely the 3-year fund: Findotec Cautious CPI+ 3% Prescient Fund; the five-year fund: Findotec Controlled CPI+ 5% Prescient Fund and the seven-year fund: Findotec Venture CPI+ 7% Prescient Fund.

Reyneke explains that by framing choices in terms of time horizons rather than abstract risk categories, Findotec makes it simpler and more intuitive for investors to commit to the right strategy. It also avoids the pitfall of conservative-sounding labels that can deter people from investing appropriately for their long-term goals.

Global trends creating local opportunity

Its structure reflects a broader global shift. Internationally, investors have increasingly turned to systematic and rules-based strategies, with passive and quantitative funds now attracting more capital than traditional active managers.

For example, according to the Investment Company Institute, U.S. equity index funds drew US$415.4 billion in inflows in the first 10 months of 2024, while active equity funds suffered US$341.5 billion in outflows. As a result, index funds accounted for 57% of equity fund assets at the end of October 2024, up from just 36% in 2016.

South Africa has historically lagged this trend, but the local market is catching up. The exchange-traded product sector grew 36.2% in 2024 to reach R225.4 billion, with index strategies making up 87% of net inflows. Likewise, Findotec’s early traction points to growing local appetite for transparent, data-driven investing.

“The debate between active and passive investing is somewhat outdated. The real question is whether performance can be measured, verified, and repeated. That’s the accountability investors want, and what our system aims to deliver.”

Findotec has also set ambitious growth targets. Having officially launched with R500 million already in assets under management, the firm aims to double that figure to R1 billion within its first year, scaling to R4 billion and then R8 billion as it expands. Automation remains central to its growth strategy, as its algorithm tests performance against strict criteria, monitors risk, and reallocates exposure as conditions change. This means investor portfolios are always dynamically positioned, even in volatile markets.

While it aims to primarily target institutional investors such as pension funds, living annuities, and financial advisors, it is also resonating with high-net-worth individuals and retail clients who are seeking clarity and accountability. The goal of always being “best of breed” offers an intuitive alternative to the complexity of conventional fund categories.

“Ultimately, our goal is to challenge the status quo and raise standards across South Africa’s financial landscape. Investors deserve true independence and strategies that adapt with evidence. By applying disciplined, objective mathematics and data-driven logic, we’re focused on growing investors’ wealth in real terms and delivering better long-term investment outcomes,” concludes Reyneke.

For more information, visit www.findotec.co.za