Sygnia Life Bitcoin Plus Fund

Investment objective and strategy

The Sygnia Life Bitcoin Plus Fund is an innovative fund providing exposure to bitcoin via a bitcoin ETF. The fund is benchmarked against the performance of the iShares Bitcoin Trust ETF which was launched in 2024 by Blackrock, the world’s largest asset manager and leading ETF provider. The fund allows investors to tap into bitcoin’s price movements, providing an effective way for investors to diversify their portfolio. The fund uses derivatives to boost its returns by adding extra income from South African money market investments, compared to holding overnight cash. This helps increase the overall return beyond what the underlying market provides. The Sygnia Life Bitcoin Plus Fund offers a suitable option for investors wanting to allocate a portion of their investment to crypto without having to self-manage the risks of direct investments. This fund is designed to capture bitcoin’s long term growth potential through a structured portfolio.

Benchmark
iShares Bitcoin Trust ETF

*Effective exposure

The Sygnia Life Bitcoin Plus Fund is a high-risk fund that offers investors exposure to bitcoin. Given this exposure, the value of the fund and its underlying is closely tied to industry developments, regulatory changes and acceptance, making it susceptible to market sentiment. Crypto markets are largely unregulated and may not be protected by governments or financial institutions. The fund’s returns are subject to extreme price volatility and the potential for loss, theft or compromise of private keys. Investing in crypto comes with risks that include large-scale sales by major investors, security threats like breaches and hacking, negative sentiment among speculators and competition from central bank digital currencies and financial initiatives using blockchain technology. A disruption of the internet or a digital asset network would affect the ability to transfer digital assets and, consequently, would impact their value. There can be no assurance that security procedures designed to protect the underlying’s digital assets will work as designed or prove to be successful in safeguarding the underlying’s assets against all possible sources of theft, loss or damage. The strategy faces additional risks beyond these crypto-specific risks, including the risk that money market investments may underperform and the risk that the companies issuing derivatives may default. The former is mitigated by diversification and highly rated money market investments, while the latter is mitigated by regular mark to market of the positions. These risks could affect the performance of the Sygnia Life Bitcoin Plus Fund, which could result in partial or total capital loss for the investor. The Sygnia Life Bitcoin Plus Fund is suitable for investors seeking higher returns who are willing to tolerate higher volatility. Given the high-risk nature of crypto, we recommend that investors do not invest more than 5% of their living annuity or discretionary assets in these funds. The minimum investment term for investors in the fund is five years.

Long-term investors seeking bitcoin exposure through the convenience of a structured crypto portfolio without the challenges of holding Bitcoin directly.

Sygnia charges an annual management fee, calculated and accrued daily and payable monthly in arrears.

Sygnia charges an annual management fee, calculated and accrued daily and payable monthly in arrears.

Sygnia does not provide advice and therefore does not charge advice fees. If a financial planner is appointed, initial and ongoing advice fees may be payable as agreed upon between you and your financial advisor. The payments of these fees are facilitated by the linked investment service provider (LISP) and not directly by Sygnia.

Tax: Tax will be levied within the fund according to the relevant tax legislation. For tax implications, please consult with a qualified tax advisor.

Linked policies: The policy benefits of the linked policies are determined solely on the value of the assets or categories of assets to which the policies are linked. The value of investments may go down as well as up.

Performance: Past performance is not necessarily a guide to future performance. Performance is calculated for the portfolio, and individual investor performance may differ as a result of initial fees, actual investment date, date of reinvestment and dividend withholding tax.

Guarantee: Sygnia does not provide any guarantee with respect to either the capital or the return of the portfolio.

Other risks: The fund may from time to time invest in foreign countries and may therefore have risks regarding liquidity, the repatriation of funds, political and macroeconomic situations, foreign exchange, tax, settlement and the availability of information.

General: Sygnia has the right to close any portfolios to new investors to Sygnia has the right to close any portfolios to new investors to manage the portfolios more efficiently in accordance with their mandates. The minimum disclosure document for this fund is available on our website:
www.sygnia.co.za

Product provider and manager: The Sygnia Group is a member of the Association for Savings and Investment SA. Sygnia Life Limited is an authorised financial services provider (FSP 2935) and licensed linked insurer (I197). Sygnia Asset Management (Pty) Limited is an authorised financial services provider (FSP 873) and is the appointed investment manager of the fund.