What do coffee and investments have in common? SA asset manager brews up the answer

In the world of asset management, explaining risk profiles and investment strategies typically involves charts, graphs and technical jargon. But one South African firm has found a more aromatic approach: coffee.

Celebrating the 10th anniversary of their bestselling Skeleton balanced funds, Sygnia partnered with local roaster Terbodore Coffee to create specialty coffee blends that correspond directly to their investment funds’ risk levels.

“We wanted to do something that would make the abstract concept of investment risk more tangible and accessible,” said Patricia Jorge, Sygnia’s Head of Retail Business. “And what better way than through something most people engage with daily?”

Financial education has traditionally relied on charts, graphs and technical terms that can leave many potential investors confused or intimidated. Sygnia’s approach brings a refreshing change to this landscape, giving clients a tangible – and tasty – way to understand investment concepts.

The clever marketing initiative translates something as abstract as investment risk into a sensory experience that resonates with everyday consumers. A conservative, low-risk fund pairs with a smooth, mild blend that encourages a more relaxed approach to investing while aggressive growth funds come with coffee strong enough to mirror the excitement of fast-moving markets.

Steve Foster, head of product development at Terbodore Coffee, described the collaborative process: “We approached each blend by first understanding the investment philosophy behind each fund. It was a fascinating challenge to translate financial concepts into flavour profiles.”

“Sygnia loved the collaboration with Terbodore, because the brand is homegrown like Sygnia and is committed to South African excellence,” Jorge said.

The collaboration has proven popular among Sygnia’s clients and financial advisors alike. What began as an anniversary celebration may evolve into a permanent feature of the company’s client education toolkit.

“People remember the coffee correlation long after they’ve forgotten the technical explanations,” said Riaan Conradie, a Sygnia Business Development Executive who loves surprising his financial advisors with a bag of freshly ground Sygnia Skeleton Coffee. “It’s transformed how some of my clients think about their portfolio diversification.”