Sygnia achieves strong full-year growth despite economic headwinds

The investment manager attributed its performance to its focus on low-cost investment and savings products.

On 4 December, Sygnia, which was founded by Magda Wierzycka, announced its annual results, reporting a robust growth in profits to the year ended September. 

Headline earnings per share grew 27 percent to 87.9 cents per share, and revenue growth increased by nearly 21 percent. 

“Sygnia’s focus on low-cost investment and savings products and service provision has meant that, in contrast to our competitors, we have experienced little pressure on management fees,” said the company in a statement.

The statement further pointed out that the company’s assets under management and administration increased by 7.1 percent to R238.4 billion at 30 September. This is compared to the JSE All Share Index returning 1.9 percent, the JSE All Bond Composite Index 11.4 percent, and the MSCI World Index, in SA rands, 9.2 percent. 

“The growth has also taken place in an environment where the institutional savings market is shrinking by virtue of almost negligible economic growth corporate closures and mass retrenchments in South Africa,” the statement further read. 

Highlights of the results included:

  •   Assets under management and administration of R238.4 billion as at 30 September 2019 (2018: R222.6 billion), up 7.1 percent.
  •   Revenue of R508.1 million (2018: R421.9 million), up 20.4 percent.
  •   Profit after tax of R125.9 million (2018: R101.0 million), up 24.7 percent.
  •   Earnings per share of 86.4 cents (2018: 69.2 cents), up 24.9%, and diluted earnings per share of 85.8 cents (2018: 68.4 cents), up 25.4 percent.
  •   Headline earnings per share of 87.9 cents (2018: 69.2 cents), up 27.0%, and diluted headline earnings per share of 87.3 cents (2018: 68.4 cents), up 27.6 percent.
  •   Net asset value per share of 438.4 cents (2018: 427.5 cents), up 2.5 percent.
  •   Total dividend per share of 60.0 cents (2018: 60.0 cents).