Sygnia sees 67% jump in earnings

Sygnia, a financial services group offering a range of products beyond asset management, has reported a significant increase in earnings, with a 67% climb in headline earnings per share. The company has also raised its total dividend by 83%, showcasing its resilience amidst the challenging market conditions brought about by the COVID-19 pandemic. As of 30 September 2020, Sygnia's assets under management and administration have risen by 6%, reaching R251.8 billion. The CEO of Sygnia, Magda Wierzycka, attributes the company's success to its diversified business model, which includes savings products, various administration platforms, an umbrella fund, and exchange-traded funds. This diversification, coupled with a growing recognition of the Sygnia brand in the retail market, has been instrumental in driving the company's growth. Wierzycka highlights the strong growth in retail investor interest, with a 30% increase in asset center management on the retail side. Furthermore, Sygnia's umbrella fund, now the sixth largest in South Africa, has gained momentum due to its cost-effective nature amidst regulatory changes around fee disclosure. Wierzycka remains optimistic about maintaining the company's positive momentum, albeit acknowledging the challenges ahead in replicating the exceptional performance of the past year. The appointment of David Haffton as co-CEO earlier this year has enabled Wierzycka to focus on strategic initiatives such as business development and client relationships. Haffton's operational expertise complements Wierzycka's entrepreneurial strengths, leading to a successful partnership at the helm of Sygnia. Looking ahead, Wierzycka discusses the company's strategy in the context of the global economic recovery post-pandemic. She emphasizes the positive impact of COVID-19 vaccines on market sentiment and highlights Sygnia's focus on expanding its umbrella fund business and enhancing its presence in the retail market through digital channels. As South Africa navigates its recovery and reconstruction phase, Wierzycka stresses the importance of the savings industry's role in investing in infrastructure projects to drive economic growth. While asset managers like Sygnia are governed by client mandates, there is a willingness within the institutional client base to contribute to the country's development through infrastructure investments. Overall, Sygnia's robust financial performance, coupled with its strategic outlook and commitment to supporting South Africa's economic recovery, positions the company as a key player in the financial services sector.