Financial services group Sygnia saw its total assets under management and administration (AuMA) grow 11.6% to R318.1 billion during the year ending September 2023, despite the woes that plagued world markets.

The group, which is headquartered in South Africa but also operates out of Europe, released its financials on Sens on Monday.

It grew institutional AuMA to R256.5 billion from R232.9 billion in the prior year, while retail AuMA increased to R61.6 billion, up from R52.2 billion in 2022.

According to Sygnia CEO Magda Wierzycka, the growth was largely supported by the performance of international funds, with technology-focused funds boosting growth in these markets. Sygnia says it saw strong growth in the popularity of its Syngia FANG.AI and Sygnia 4^th Industrial Revolution funds as the world sees rapid growth of innovation around GPT technology.

The firm’s revenue increased by 4.3% to R843.9 million, up from R808.9 million in 2022, while profit after tax came in 4.5% stronger at R300.4 million.

Sygnia’s basic and headline earnings per share grew by 4% to 198.9 cents per share.

The board declared a slightly lower final dividend of 123 cents (compared to 130 cents in 2022), bringing the total dividend for the year to 210 cents, the same as last year.

Sygnia share price

SA falls behind

In her CEO report, Wierzycka criticised South Africa’s leadership for sleeping at the wheel in addressing the country’s major economic growth restrictors. Like many business leaders, she expressed concern about the country’s persistent power cuts and the devastating impact this has on economic growth.

“South Africa continues to squander its opportunities …,” she said.

“Most worryingly, we are being left far behind the countries allocating significant capital to technology innovation and entrepreneurial activities.”

She said she has little hope that the upcoming 2024 national elections will do anything to help the country change course. Instead, Wierzycka said the likely scenario of a coalition government will only bring about further instability in governance.

Read: SA equities do not represent ‘great, long-term value for investors’ – Wierzycka

“Unfortunately, we have become too complacent and accepting of corruption, disorder and non-delivery. Most importantly, there are no growth strategies on the table.”

Outlook

The firm says it will continue to focus on retail, exchange-traded funds, and umbrella fund markets as its key growth areas.

“We expect a number of initiatives to facilitate further growth in AuMA in 2023/24, including new thematic investment products, AI-enabled customer service, more focus on pricing and cost management, a great marketing spend and the launch of a leading LISP [linked investment service provider] platform,” Wierzycka said.

Read: Shrinking JSE: Satrix and Itrix to close some ETFs and merge others

“Private and public capital available for funding developments in fields as wide-ranging as climate change, AI advancement, healthcare provision, and food security is at its peak,” she added.

“This is likely to continue as governments worldwide recognise and support the power of innovation. Given our focus on exactly these themes, we remain confident about Sygnia’s future and new opportunities for South African investors.”

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