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Views Article – Sharenet Wealth

Share Picks, South Africa

Sygnia: Bucking The Depressing Economic And Political Trend

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While political instability and sluggish economic growth have been plaguing South Africa, bumping the country down a further 14 places in the World Economic Forum’s Competitive Index, Sygnia, the FinTech company has been bucking the trend with strong growth and value for its investors.

The company attributes its phenomenal recent growth to highly competitive technology platforms and its investment and smart asset allocation strategies, specifically focusing on technology-driven industries.

Sygnia, the innovative fin-tech market disruptor, serving both institutional and retail businesses, has yet again delivered value to its investors by producing an excellent set of results.

Assets under management of R184.3 billion, up 16.0%, the acquisition of db X-trackers, renamed as Sygnia Itrix on 1 July 2017, added R12.0 billion to assets under management. The company’s revenue increased by 20.6% and profit after tax jumped to R333.1 million, an increase of 28%. Shareholders were handsomely rewarded with total dividend per share of 60.00 cents, reflecting the company’s strong cash position.

One of the highlights for 2016 was the launch of the exciting new Sygnia 4th Industrial Revolution Global Equity Fund which returned a whopping 41.8% in its first year. This new fund, a first of its kind in South Africa, provides a platform and offers investors exposure to cutting-edge, technology-driven global companies.

After the release of Sygnia’s trading statement, which promised an increase in EPS and HEPS of between 65.5 cents and 70 cents, which translates into an increase of between 19% and 26%, the share price realised a gain of 68% for the month of November.

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credit: Graph Provided by Sharenet Advanced Online Charts

Trade SYG From 0.3%

While the competition were focused on macro economic factors and their negative impact on market sentiment, Sygnia’s proactive management on the other hand, took a forward-looking view using investment foresight and risk-mitigation strategies for what was to come. This approach contributed towards increased returns.

“We are pleased that our investment portfolios were all well-positioned for what has transpired in the investment markets. After a challenging 2016, our negative view of the political situation impacting economic growth and investment risk was vindicated, with investment performance recovering strongly despite the volatility,” says a SENS announcement.

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Jeremy Woods

Jeremy Woods trained for three years as a journalist on the Herts Advertiser, St Albans, in the U.K. Once qualified, he left England to work as a crime reporter on the Vancouver Sun in Canada. After three years, he worked for the Los Angeles Times as a trainee financial journalist, spending most of his time reading company accounts and finding publishable stories in them. He moved to South Africa and for the last five years in journalism worked for the Sunday Times, Business Times, as Investment Editor. He has also published a financial thriller called “Special Payments”, which was a best-seller on publication, and optioned three times for a film.


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