The Sygnia Enhanced Income Fund is a low- to medium-risk interest-earning portfolio that is multi-managed. The underlying investments are managed by both Sygnia and Sygnia-appointed specialist asset managers based on their skills, experience, performance and operational and financial soundness.
“Our funds are designed to challenge the status quo, because we want our investors to feel like the world is their oyster, that everything is possible.”
Kyle Hulett, Head of InvestmentsInvestment objective and strategy
The objective of this Sygnia Enhanced Income Fund is to outperform the returns on cash
at a low level of volatility. This will be a multi-asset portfolio with the primary objective
of producing a stable income stream and will invest in a wide spread of income-bearing
investments in the equity, bond, money market and real estate markets. By bridging the
gap between money market and bond funds, investors will gain access to term premium
without having to take on interest rate risk. The fund will be multi-management, which is a
new development in the income space. The fund will appoint external managers who will
be mandated to assist in achieving the objectives of the portfolio. At the same time there
will be an internal management of overall risk to ensure diversification limits are always in
place. The combination will provide enhanced yield with reduced risk, at lower cost. The
fund will be managed with prudential guidelines and maintain a max 10% equity exposure.
Derivatives are allowed for efficient portfolio management.
What the fund invests in
| Asset Class | Percentage | Allocation |
|---|---|---|
| SA Bonds | 71.8 | |
| SA Money Markets | 16.5 | |
| International Fixed Interest | 8.6 | |
| Internation Cash | 3.1 |
Risk profile
The fund is strategically managed to achieve attractive returns while protecting capital.
The fund risk is managed by spreading investments across sectors and individual issuers.
Who should invest
The fund is suited to investors seeking capital stability and stable and consistent returns
within their financial planning. The fund is also suited to investors who wish to invest in a
well-diversified strategy.
And for how long?
A minimum of 2 years.
Sygnia charges an annual management fee, calculated and accrued daily. This fee is payable monthly in arrears.
| Initial Fees | N/A |
| Management Fees | 0.65% per annum (excluding VAT) |
| Performance Fees | N/A |
| Other Expenses | 0.01% |
| VAT | 0.10% |
| Total Expense Ratio (TER) | 0.77% (Mar 2024) |
| Transaction Costs (TC) | 0.00% (Mar 2024) |
| Total Investment Charge (TIC) | 0.77% (Mar 2024) |
Fee disclosure
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.
Disclaimer
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 that 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