Sygnia FANG.AI Equity Fund Class B

Investment objective and strategy
The objective of the Sygnia FANG.AI Equity Fund is to provide a simple vehicle to investors seeking investment exposure to companies that use advanced technologies to acquire and retain users, including industry disrupting technologies such as artificial intelligence, large language models, cloud storage, big data, social media and e-commerce tools. The portfolio holdings are actively managed and depend on a number of factors, including the underlying benchmark, the NYSE® FANG+™Index (although the portfolio is not obliged to hold all the benchmark constituents).

Benchmark
NYSE FANG+ Index

The fund has a high risk profile, as it is predominantly invested in global equities, which combines both equity market and currency risks. Furthermore, the fund invests specifically in companies involved in new and emerging technologies, which have a high degree of volatility. Risk is also high as the fund is a concentrated portfolio, with the fund’s benchmark comprised of only ten shares. Effective exposure of the portfolio invested outside South Africa is always above 80% and is affected by, among other factors, general market risk, exchange rate risk, interest rate risks, liquidity risk and legal and regulatory risk.

The fund is suitable for investors seeking currency diversification and higher returns with a view to long-term capital growth. It is also suited to investors willing to tolerate a higher risk of volatility in performance through exposure to companies involved in transformative technologies.

Sygnia charges an annual management fee, calculated and accrued daily and payable monthly in arrears. The performance fee is calculated and accrued daily and is deducted monthly. Consequently, the TER of the product may be higher than the annual management fee quoted.

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. A higher TER does not necessarily imply a poor return, nor does a low TER imply a good return. The current TER may not necessarily be an accurate indication of future TER’s. Transaction Costs are a necessary cost in administering the Financial Product and impacts Financial Product returns. It should not be considered in isolation as returns may be impacted by many other factors over time including market returns, the type of Financial Product, the investment decisions of the investment manager and the TER.

The Sygnia Group is a member of the Association for Savings and Investment SA. Sygnia Collective Investments RF (Pty) Ltd is a registered and approved Manager in Collective Investment Schemes in Securities. Collective investment schemes are generally medium to long-term investments. Sygnia Asset Management (Pty) Limited (FSP 873), an authorised financial services provider, is the appointed investment manager of the Fund. The portfolio may invest in other unit trust portfolios which levy their own fees, and may result in a higher fee structure and the value of investments / units / unit trusts may go down as well as up. Past performance is not necessarily a guide to future performance. Collective investments are traded at ruling prices and can engage in borrowing and scrip lending. A schedule of fees and charges and maximum commissions is available from the Manager on request. Performance is based on NAV-to-NAV calculations with income reinvestments done on the ex-div date. Performance is calculated for the portfolio and the individual investor performance may differ as a result of initial fees, actual investment date, date of reinvestment and dividend withholding tax. The Manager does not provide any guarantee either with respect to the capital or the return of a portfolio. Collective investments are calculated on a net asset value basis, which is the total market value of all assets in the portfolio including any income accruals and less any deductible expenses such as audit fees, brokerage and service fees. Forward pricing is used. All the portfolio options presented are approved collective investment schemes in terms of Collective Investment Schemes Control Act, No 45 of 2002 (“CISCA”). The fund may from time to time invest in foreign countries and therefore it may have risks regarding liquidity, the repatriation of funds, political and macroeconomic situations, foreign exchange, tax, settlement, and the availability of information. The Manager has the right to close any portfolios to new investors to manage them more efficiently in accordance with their mandates. A copy of the Minimum Disclosure Document (MDD) is available on our website: www.sygnia.co.za.