Sygnia Limited has opened its private placing on 1 October 2015 and will close it on 8 October 2015.
Sygnia Limited has opened its private placing on 1 October 2015 and will close it on 8 October 2015. A private placing it is not an invitation to the public to subscribe for, or an offer to the public to purchase, Sygnia shares. The SENS announcement and the Pre-listing Statements are issued in compliance with the JSE listings requirements to provide information to the public with regard to Sygnia.
Sygnia plans to list on the Main Board of the JSE in the Financial Services sector on Wednesday, 14 October 2015.
Sygnia is a specialist financial services group which provides asset management (multi-management, index tracking and funds of hedge funds) and administration solutions to institutional and retail clients predominantly in South Africa. Sygnia was officially founded in November 2006 when it unbundled from the African Harvest Group with less than R2 billion in assets under management and administration. This number has grown to R137 billion by 30 June 2015.
Sygnia’s management team has a wealth of experience in asset management and a successful track record in building organically grown entrepreneurial businesses, with its CEO, Magda Wierzycka, having headed the institutional business of Coronation Fund Managers in its early years and thereafter having led the African Harvest Group.
Sygnia has a reputation for innovation and being a ‘market disruptor’ within the financial services industry. In 2013 the company launched its low cost savings products linked to index tracking, charging just 0.40% per annum for a combination of a retirement annuity and an investment product. This has shaken up the industry which is used to charging well in excess of 1% for similar products.
Sygnia is well-positioned to take advantage of the regulatory changes in South Africa and plans to pursue multiple areas of expansion.
In the multi-manager business Sygnia’s investment performance has been consistently strong, creating an opportunity to attract business from competitors. Sygnia’s proprietary multi-manager administration systems are seen as market leaders in South Africa and make Sygnia’s services highly scalable.
Sygnia has a 12-year performance track record in managing index-tracking funds and is well-positioned to benefit from regulatory support and growing demand for low cost products and passive management.
Sygnia also has a 12-year performance track record in managing funds of South African hedge funds. Given the recent changes in regulation declaring hedge funds as Collective Investment Schemes, as well as the volatile investment markets making capital preservation strategies more relevant, the profile and attractiveness of hedge fund investments is expected to grow.
Sygnia’s retail business, including its cost-effective LISP, savings products and index tracking unit trusts are enjoying growing support among the financial advisory market, as well as direct investors.
The main reasons for listing on the JSE is to enhance the company’s public profile, brand recognition and general public awareness in order to facilitate growth, to tie-in key staff and to enable Sygnia to access capital markets, as and if required.