2017 financial results - sygnia · statement of financial position ˜corporate˚ balance sheet at...

FOR THE YEAR ENDED 30 SEPTEMBER 2017

2017 FINANCIAL RESULTS

AGENDA

1. FINANCIAL HIGHLIGHTS

2. BUSINESS OVERVIEW

3. BUSINESS UPDATE

› INSTITUTIONAL

› RETAIL

4. LOOKING AHEAD

5. QUESTIONS

FINANCIAL HIGHLIGHTS


12 MONTHS TO 30 SEPTEMBER 2017 12 MONTHS TO 30 SEPTEMBER 2016 % CHANGE

Assets under management and administration

R 184.3 bn R 158.4 bn 16.0%

Revenue R 333.1 m R 276.2 m 20.6%

Expenses R 230.4 m R 198.7 m 16.1%

Profit before tax R 133.4 m R 100.9 m 32.2%

Profit after tax R 92.5 m R 72.3 m 28.0%

Headline earnings R 92.5 m R 72.3 m 28.0%

STATEMENT OF PROFIT OR LOSS

SYGNIA’S REVENUE STREAM IS INCREASINGLY DIVERSIFIED BASED ON ITS ASSET MIXASSET ALLOCATION AS AT 30 SEPTEMBER 2017

International incl. Africa

34%

SA FoHF

3%SA Listed Property

5%SA Money Market

11%

SA Bonds

18%

SA Equity

29%

REVENUE BREAKDOWN BY LINE OF BUSINESS% BREAKDOWN OF REVENUE

Asset Management

74.0%Stockbroking

and other

9.2%

Investment, liability and LISP administration

16.8%


12 MONTHS TO 30 SEPTEMBER 2017 12 MONTHS TO 30 SEPTEMBER 2016

Total operating expenses R 230.4 m R 198.7 m

MAJOR CONTRIBUTORS:Staff costs R 109.2 m R 91.4 m

Management fees to third party asset managers by Sygnia Collective Investments RF R 37.0 m R 44.1 m

Rental and related R 15.4 m R 13.1 m

Professional services and fees R 22.5 m R 13 m

Marketing R 15.8 m R 6.6 m

COST ANALYSIS

Professional services and fees

Marketing


12 MONTHS TO 30 SEPTEMBER 2017 12 MONTHS TO 30 SEPTEMBER 2016 % CHANGE

Headline earnings per share (cents) 69.72 55.71 25.1%

Diluted headline earnings per share (cents) 68.82 53.54 28.5%

Interim dividend per share (cents) 25.00 25.00 -

Final dividend per share (cents) 35.00 27.00 29.7%

Total dividend per share (cents) 60.00 52.00 15.4%

SHARES IN ISSUE

Shares in issue 154 955 778 137 178 000 13.0%

Weighted average number of shares in issue 132 746 682 129 781 285 2.3%

EARNINGS AND DIVIDENDS

DIVIDEND DECLARATION

Sygnia is committed to rewarding its shareholders with regular distributions of free cash flow generated. Accounting for projected cash requirements, a gross dividend (No. 4) for the period ended 30 September 2017 of 35.00 cents per share has been declared out of retained income, resulting in a net dividend of 28.00 cents per share for shareholders subject to Dividends Tax (“DT”).

In compliance with the JSE Listings Requirements, the following dates are applicable:

Last day to trade: Tuesday, 19 December 2017Shares trade ex-dividend: Wednesday, 20 December 2017Record date: Friday, 22 December 2017Payment date: Wednesday, 27 December 2017



STATEMENT OF FINANCIAL POSITION (CORPORATE)

BALANCE SHEET AT 30 SEPTEMBER 2017 R’000s AT 30 SEPTEMBER 2016 R’000s

ASSETS

Intangible assets R 353 169 R 32 609

Property and Equipment R 29 848 R 31 131

Deferred tax asset R 3 803 R 4 881

Investments R 214 773 R 201 626

Loans receivable R 11 043 R 11 438

Taxation receivable R 1 066 R 994

Trade and other receivables R 66 324 R 31 109

Cash and cash equivalents R 181 196 R 160 753

TOTAL ASSETS R 861 222 R 474 542TOTAL EQUITY R 608 184 R 421 486


STATEMENT OF FINANCIAL POSITION (CORPORATE)

BALANCE SHEET AT 30 SEPTEMBER 2017 R’000s AT 30 SEPTEMBER 2016 R’000s

LIABILITIES

Bank overdraft R 51 R 492

Deferred tax liabilities R 7 358 R 3 042

Taxation payable R 8 002 R 704

Trade and other payables R 72 427 R 48 818

Loans payable R 165 201 -

TOTAL LIABILITIES R 253 038 R 53 056TOTAL EQUITY AND LIABILITIES R 861 222 R 474 542

BUSINESS OVERVIEW

A JSE-listed financial services group offering a range of investment management solutions and administration services to institutional and retail clients in South Africa and abroad.

SYGNIA LIFE SYGNIA ASSET MANAGEMENT SYGNIA COLLECTIVE INVESTMENTS SYGNIA FINANCIAL SERVICES SYGNIA SECURITIES SYGNIA EMPLOYEE BENEFITS SYGNIA ITRIXSYGNIA SYSTEMS

SYGNIA LIMITED

2nd LARGEST MULTI-MANAGEMENT COMPANY IN SOUTH AFRICA

R184 BILLION IN ASSETS UNDER MANAGEMENT AND ADMINISTRATION AT 30 SEPTEMBER 2017

TECHNOLOGY LEADERSHIP

TEAM STABILITY

MARKET DISRUPTOR

66% STAFF AND MANAGEMENT OWNED (INCLUDING BEE STAFF SCHEME)

R1.2 BILLION PI COVER

181 STAFF IN CAPE TOWN, JOHANNESBURG AND DURBAN

ADVISORSExternal auditors: Deloitte

ISAE3402 Type II audit: Deloitte

Insurance advisors: Marsh Financial

Internal auditors: PWC

WHAT WE DO

SAVINGS PRODUCTS

Retail savings products (living annuities, preservation funds, RAs)Unitised products (pooled portfolios, unit trusts)Sygnia Umbrella Retirement Fund (SURF)

SUPPORT BUSINESSES

Sygnia SecuritiesSygnia RoboAdvisor

ASSET MANAGEMENT

We manage assets on behalf of South African institutional and retail investors. We offer:

Multi-manager fundsIndex-tracking fundsFunds of SA hedge funds (FoHFs)

INVESTMENT ADMINISTRATION

We provide investment administration services to South Africa, UK and USA based institutional clients.

Investment administrationLiability administrationLISP

SYGNIA BOARD OF DIRECTORS

MAGDA WIERZYCKACHIEF EXECUTIVE OFFICER

BBusSc (Actuarial), PGDip (Actuarial), FFA, FASSA, CFP FIFM24 years’ experience

MIKE BUCKHAMFINANCIAL DIRECTOR

BBusSc (Finance), PGDA, CA (SA), CFA21 years’ experience

KEN HOPKINSINDEPENDENT NON-EXECUTIVE DIRECTOR

Bcom (Hons), CA (SA)

KAIZER MOYANEINDEPENDENT NON-EXECUTIVE DIRECTOR

BA, LLB

HAROON BHORATNON-EXECUTIVE CHAIRPERSON

PhD (Economics)

SHIRLEY ZINNINDEPENDENT NON-EXECUTIVE DIRECTOR

BA, HDip (Education), BEd Hons, MEd, EdM (Harvard), EdD (Harvard)

NAME QUALIFICATION JOB TITLE & ROLE EXPERIENCEMagda Wierzycka BBusSc (Actuarial), PGDip (Actuarial), FFA, FASSA, CFP FIFMMagda Wierzycka BBusSc (Actuarial), PGDip (Actuarial), FFA, FASSA, CFP FIFM Chief Executive Officer 24 yearsNiki Giles BBuscSc (Finance), CA (SA), CFA Chief Operating Officer 19 yearsIain Anderson BMath (Hons), CFAIain Anderson BMath (Hons), CFA Head: Investments 16 yearsDuane Gilbert BBusSc (Actuarial Science)Duane Gilbert BBusSc (Actuarial Science) Head: Manager Research 8 yearsMike Buckham BBusSc (Finance), PGDA, CA (SA), CFAMike Buckham BBusSc (Finance), PGDA, CA (SA), CFA Financial Director 21 yearsGlen MacLachlan BBusSc (Hons), LLB Attorney of the High Court Glen MacLachlan BBusSc (Hons), LLB Attorney of the High Court Head: Legal 18 yearsWojtek Wierzycki MCSEWojtek Wierzycki MCSE Head: IT and Systems 18 yearsAndrew Steyn BCom (Economics)Andrew Steyn BCom (Economics) Head: Client Relations 24 yearsCher Leetjer BTech (Marketing)Cher Leetjer BTech (Marketing) Head: Institutional Marketing 17 yearsDavid Hufton BEconSc (Actuarial), FASSA, FIA David Hufton BEconSc (Actuarial), FASSA, FIA Head: Strategic Projects 27 yearsBen Meyer BCom (Hons: Econometrics) Head: Sygnia Itrix 22 yearsDarryl Moodley BBusSc (Actuarial Science and Quantitative Finance)Darryl Moodley BBusSc (Actuarial Science and Quantitative Finance) Head: Consulting 10 yearsBianca Goodson BSc (Hons)Bianca Goodson BSc (Hons) Executive Manager 13 yearsCharlene Swartz MCom (Accounting), BBusSc (Hons in Finance), BCom (Hons in Accounting), CA (SA) Head: Retail AdministrationCharlene Swartz MCom (Accounting), BBusSc (Hons in Finance), BCom (Hons in Accounting), CA (SA) Head: Retail AdministrationCharlene Swartz MCom (Accounting), BBusSc (Hons in Finance), BCom (Hons in Accounting), CA (SA) Head: Retail AdministrationCharlene Swartz MCom (Accounting), BBusSc (Hons in Finance), BCom (Hons in Accounting), CA (SA) Head: Retail Administration 16 yearsMarlene Budge BCom (Hons in Economics)Marlene Budge BCom (Hons in Economics) Co-head: Institutional Administration 25 yearsCo-head: Institutional Administration 25 yearsColeen Viljoen BCom (Hons in Accounting), CA (SA)Coleen Viljoen BCom (Hons in Accounting), CA (SA) Head: Retail Fund Administration 16 yearsVicky Theron BCom (Hons in Accounting Science), CA (SA)Vicky Theron BCom (Hons in Accounting Science), CA (SA) Co-head: Institutional Administration 9 years

SYGNIA MANAGEMENT TEAM

STRONG AND EXPERIENCED MANAGEMENT TEAM SUPPORTS THE OPERATIONS OF SYGNIA

ASSETS UNDER MANAGEMENT AND ADMINISTRATION

0 20 60 100 14040 80 120 160 180 200

SEP ‘07 R4.7bn

R4.5bn

R40.5bn

R62.7bn

R70.4bn

R147.2bn R11.2bn

R159.7bn R11.6bn R12.3bn

R127.9bn R8.7bn

R105.1bn R7.5bn

R103bn R5.9bn

R82.7bn R4.5bn

SEP ‘08

SEP ‘09

SEP ‘10

SEP ‘11

SEP ‘12

SEP ‘13

SEP ‘14

SEP ‘15

SEP ‘16

SEP ‘17

SYGNIA RETAIL SYGNIA ETFsSYGNIA INSTITUTIONAL

Entry into the ETF market with the acquisition of db X-trackers (RF) Proprietary Limited (DBX) from Deutsche Bank, renamed Sygnia Itrix (RF) Proprietary Limited (added R12bn to AuM).

LAUNCH OF INNOVATIVE NEW PRODUCTS:

Sygnia 4th Industrial Revolution Global Equity Fund: returned 41.8% in its first yearSygnia ForLife Annuity: a unique post-retirement savings solutionNew ETFs: Sygnia Itrix Top 40, SWIX 40, Global Property and S&P500

STRONG INVESTMENT PERFORMANCE (INSTITUTIONAL AND RETAIL):

Sygnia Signature and Skeleton products into the first quartile of major performance surveys over 1, 3 and 5 yearsSygnia SWIX Unit Trust is the 17th top-performing unit trust out of 112 unit trusts in South Africa (Source: MoneyMate)

Sygnia becomes the 2nd largest passive asset manager in South Africa based on third party AuM. Growth in the awareness of Sygnia’s brand due to our anti-corruption stance.

BUSINESS HIGHLIGHTS TO 30 SEPTEMBER 2017

STRONG INVESTMENT PERFORMANCE (INSTITUTIONAL AND RETAIL):

Sygnia becomes the 2nd largest passive asset manager in South Africa based on third party AuM. Growth in the awareness of Sygnia’s brand due to our anti-corruption stance.

MARKET ENVIRONMENT

KEY POINTS CONTAINED IN DEFAULT REGULATION: › All retirement funds have to put default investment, preservation

and retirement strategies in place for members. › Index tracking must be considered alongside active management. › Costs must be considered. › Retirement funds have to provide “benefit counselling” to members.

THE IMPACT OF DEFAULT REGULATION IS EXPECTED TO BE HUGELY BENEFICIAL TO SYGNIA:

› Index tracking has become a real factor in decision making (Sygnia Signature products are well-positioned for this by blending active and index tracking strategies).

› Sygnia Robo-advisor is a cost-free way of providing benefit counselling to members, which constitutes proper advice under the FAIS Act.

› Sygnia ForLife Annuity is an innovative post-retirement default solution. › Increased regulatory risk has increased the impetus on standalone funds

to collapse into umbrella funds.

INSTITUTIONAL MARKET

HUGELY

Sygnia Signature products strategies).

cost-free way of providing benefit counselling to

default solution.standalone funds

Sygnia Signature products strategies).

standalone funds

OTHER TRENDS WE ARE SEEING:

In a low return environment, costs matter more (margin squeeze continues).Most asset flows in the past year have been driven by movement towards umbrella funds, rather than switching asset managers as most boards of trustees were totally unprepared for seeing single-digit returns.Market consolidation continues e.g. Sanlam acquired Absa C&A to merge with Simeka, Investment Solutions (AF Investments) absorbs AF Asset Consulting.Most competitors are focusing on cost-cutting initiatives and expansion into the retail space.Barriers to entry for new active asset managers are higher than before.Draft directive prohibiting boards of trustees, administrators and other officers of retirement funds from accepting gifts from service providers.

INSTITUTIONAL MARKET

driven by movement rather than switching asset managers as most

boards of trustees were totally unprepared for seeing single-digit returns.

higher than before.prohibiting boards of trustees, administrators and other

› Awaiting RDR – it will eliminate extra “incentives” paid by many LISPs to financial advisors in the form of distribution fees, bonuses and loyalty programmes – as Sygnia does not offer any such incentives it is more difficult to attract IFAs

› DFMs are becoming more important as IFAs move away from white-labelled funds to customised model portfolios (Sygnia acts as a DFM for its LISP platform)

› Awareness of index tracking is increasing, but most flows are still from direct clients and most target ETFs – we hope to change that given the strong performance of the Sygnia SWIX Index unit trust

› Increased awareness of Sygnia’s brand is resulting in enhanced flows as clients are asking their IFAs to use Sygnia

RETAIL MARKET

DIVISIONAL HIGHLIGHTS

LAUNCHED SYGNIA UMBRELLA RETIREMENT FUND (SURF) ON 1 MAY 2016

COST OF SURF: 0.39% P.A. TO 0.92% P.A. (INCL. VAT)

ONE ALL-IN PRICING MODEL:

No administration feeNo consulting feeAsset management fees only (restricted choice of investment products)

SURF IS GAINING TRACTION:

AuM as at 1 May 2016: R1.2 billionAuM as at 30 September 2017: R2.4 billion (R1.2 billion awaiting regulatory approval)Number of new participating employers in past 12 months: 30

SURF is supported by a leading-edge technology platform, which links retirement savings to discretionary savings (LISP platform has been expanded to service SURF members).

SYGNIA UMBRELLA RETIREMENT FUND (SURF)

AuM as at 30 September 2017: R2.4 billion (R1.2 billion awaiting regulatory approval)

is supported by a leading-edge technology platform, which links retirement savings members).

SYGNIA UMBRELLA RETIREMENT FUND (SURF)

ACQUIRED DBX ON 1 JULY 2017, RENAMED SYGNIA ITRIX

RATIONALE

› Increased passive AuM to R32.1 billion as at 30 September 2017 (2016: R14.4 billion) to become 2nd largest passive manager in South Africa based on third party assets

› Added US dollar based revenue stream to earnings as 5 db X-trackers acquired reference foreign assets

› Immediate earnings enhancing acquisition: added R9.7 million to net profit after tax in 3 months (excluding finance costs)

› Opportunity to grow the awareness of Sygnia’s brand among over 30 000 retail investors currently investing in Sygnia Itrix ETFs

› Added 1 955 clients to Sygnia’s LISP platform (successfully transferred from AOS), increasing awareness of Sygnia’s brand and products

› Allowed Sygnia to launch low-cost domestic ETFs, competing with Satrix in the retail market › Allowed Sygnia to switch its international passively-managed assets from BlackRock into its own products.

SYGNIA ITRIX

as at 30 September 2017 (2016: R14.4 billion) to in South Africa based on third party assets

competing with Satrix in the retail marketinto its own products

as at 30 September 2017 (2016: R14.4 billion) to in South Africa based on third party assets

competing with Satrix in the retail marketinto its own products

as at 30 September 2017 (2016: R14.4 billion) to

competing with Satrix in the retail marketinto its own products.

RETAIL ASSET MANAGEMENT AND ADMINISTRATION BUSINESS

RISK PROFILE MULTI-MANAGER UNIT TRUSTS PASSIVELY MANAGED UNIT TRUSTS FUNDS OF HEDGE FUNDS ETFS

HIgH RISk CPI + 6% Fund Skeleton Balanced 70 Fund

MoDERaTE RISk CPI + 4% Fund Skeleton Balanced 60 Fund All-Star FoHFs, Signature FoHs

LoW RISk CPI + 2% Fund Skeleton Balanced 40 Fund Absolute FoHFs

OTHER International Flexible FoFs Skeleton International Equity FoFs Sygnia Itrix MSCI World

Equity Fund Top 40 Index Fund Sygnia Itrix Eurostoxx50

Africa Equity Fund Divi Index Fund Sygnia Itrix FTSE100

Money Market Fund SWIX Index Fund Sygnia Itrix MSCI US

Listed Property Index Fund Sygnia Itrix MSCI Japan

All Bond Index Fund Sygnia Itrix Top 40

Skeleton Worldwide Flexible Fund Sygnia Itrix SWIX 40

4th Industrial Revolution Global Equity Fund Sygnia Itrix Global Property

Sygnia has a comprehensive product range supported by a technologically strong LISP platform – we are seeing increasing support from IFAs and direct clients › AuM: R24.3 bn (2016: R11.3 bn) › LISP Clients: 8 237 (2016: 5 981)

UNIT TRUST PERFORMANCE

KEY PERFORMANCE ACHIEVEMENTS

SYGNIA SKELETON BALANCED 70 FUND Ranked 22nd out of 103 unit trusts,* most of them actively managed South African – Multi-Asset – High Equity category from October 2013 to September 2017.

SYGNIA SKELETON BALANCED 60 FUND Ranked 4th out of 58 unit trusts,* most of them actively managed, in the South African – Multi-Asset – Medium Equity category from May 2014 to September 2017.

SYGNIA SKELETON BALANCED 40 FUND Ranked 12th out of 94 unit trusts,* most of them actively managed, in the South African – Multi-Asset – Low Equity category from March 2014 to September 2017.

SYGNIA SWIX INDEX FUND Ranked 17th out of 112 unit trusts,* most of them actively managed, in the South African – Equity – General category from October 2013 to September 2017.

SYGNIA TOP 40 INDEX FUND Ranked 4th out of 13 unit trusts,* most of them actively managed, in the South African – Equity– Large Cap category from November 2013 to September 2017.

SYGNIA ACTIVE EQUITY FUND Ranked 51st out of 123 unit trusts,* an actively-managed equity unit trust, in the South African – Equity – General category from July 2014 to September 2017.

SYGNIA VALUE FUND Ranked 19th out of 131 unit trusts,* an actively-managed equity unit trust, in the South African – Equity– General category from January 2015 to September 2017.

SYGNIA GROWTH FUND Ranked 65th out of 147 unit trusts,* an actively-managed equity unit trust, in the South African – Equity– General category from January 2016 to September 2017.

*Source: MoneyMate

UNIT TRUST PERFORMANCE

KEY PERFORMANCE ACHIEVEMENTS

SYGNIA EQUITY FUND Ranked 36th out of 110 unit trusts,* an actively-managed equity unit trust, in the South African – Equity – General category from August 2013 to September 2017.

SYGNIA CPI + 2% FUND Ranked 11th out of 101 unit trusts* in the South African – Multi-Asset – Low Equity category for the 3 years to September 2017.

SYGNIA CPI + 4% FUND Ranked 5th out of 60 unit trusts* in the South African – Multi-Asset – Medium Equity category for the 3 years September 2017.

SYGNIA CPI + 6% FUND Ranked 29th out of 119 unit trusts* in the South African – Multi-Asset – High Equity category for the 3 years September 2017.

SYGNIA INTERNATIONAL FLEXIBLE FUND OF FUNDS Ranked 3rd out of 15 unit trusts* in the South African – Global – Multi-Asset – Flexible category over the period since inception in June 2014 to September 2017.

SYGNIA SKELETON INTERNATIONAL EQUITY FUND OF FUND Ranked 15th out of 41 unit trusts* in the South African – Global – Equity – General category over the period since inception in November 2015 to September 2017.

SYGNIA 4TH INDUSTRIAL REVOLUTION GLOBAL EQUITY FUND Ranked 2nd out of 46 unit trusts* in the South African – Global – Equity – General category over the period since inception in October 2016 to September 2017.

*Source: MoneyMate

PROFILE MULTI-MANAGER INDEX TRACKING FUNDS OF HEDGE FUNDS

HIgH RISk Signature 70 Fund Skeleton 70 Fund All-Star FoHFs

MoDERaTE / HIgH RISk Signature 60 Fund Skeleton 60 Fund

MoDERaTE RISk Signature 50 Fund Skeleton 50 Fund Signature FoHFs

LoW RISk Signature 40 Fund Skeleton 40 Fund Absolute FoHFs

Sygnia has a comprehensive well-performing suite of products and the most advanced investment administration platform in South Africa › AuM and AuA: R159.7 bn (2016: R147.1 bn) › Investment adminstration service remains in high demand for large clients › Specialist index-tracking mandates are starting to attract inflows

INSTITUTIONAL ASSET MANAGEMENT AND ADMINISTRATION BUSINESS

*NOTE: Signature and Skeleton Funds are offered with and without Funds of Hedge Funds exposure

INVESTMENT PERFORMANCE

LONG-TERM PERFORMANCE CHART TO 30 SEPTEMBER 2017

(Source: Alexander Forbes survey and published data/fact sheets)

Sygnia Signature 70 Fund

Sygnia Skeleton 70 Fund

Global Large Manager Median

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

SYGNIA SKELETON 70 FUNDGLOBAL LARGE MANAGER MEDIAN

SYGNIA SIGNATURE 70 FUND

400

350

300

250

200

150

100

50

0

DEC

201

5

DEC

201

6

JUN

201

6

JUN

201

7

JUN

201

5

DEC

201

4

JUN

201

4

DEC

201

3

JUN

201

3

DEC

201

2

JUN

201

2

DEC

201

1

JUN

201

1

DEC

201

0

JUN

201

0

DEC

200

9

JUN

200

9

DEC

200

8

JUN

200

8

DEC

200

7

JUN

200

7

DEC

200

6


ALEXANDER FORBES LOW EQUITY MULTI-MANAGER SURVEY TO 30 SEPTEMBER 2017



old Mutual Inflation Plus 1-3%


27Four CPI +3%

aF Investments 37.5% Equity

Momentum Enhanced 4

aF Investments Low Equity

Momentum Enhanced 3

12.4%

12.1%

11.4%

11.4%

10.2%

9.7%

9.4%

8.6%

3 YEARS *5 YEARS



old Mutual Inflation Plus 1-3%

27Four CPI +3%

Momentum Enhanced 4

Momentum Enhanced 3

aF Investments Low Equity

aF Investments 37.5% Equity

9.6%

9.0%

8.9%

8.6%

8.3%

7.7%

7.6%

7.6%

*Sygnia Skeleton returns prior to inception (17 January 2013) are simulated returns based on reasonable assumptions using similar strategies managed by Sygnia.


ALEXANDER FORBES HIGH EQUITY MULTI-MANAGER SURVEY TO 30 SEPTEMBER 2017




Momentum Classic 7

Momentum Enhanced 7

aF Investments Performer


old Mutual aggressive

aF Investments Spectrum

aF Investments High Equity

SMM 70

9.5%

9.3%

9.1%

9.1%

8.4%

8.0%

7.5%

7.5%

6.9%

14.4%

14.1%

13.8%

13.6%

13.3%

13.0%

12.2%

11.9%

11.9%


Momentum Classic 7

Momentum Enhanced 7

aF Investments Performer

old Mutual aggressive


aF Investments High Equity

SMM 70

aF Investments Spectrum

3 YEARS *5 YEARS


ALEXANDER FORBES GLOBAL LARGE MANAGER SURVEY TO 30 SEPTEMBER 2017



Investec


allan gray

Prudential

Coronation

oMIgSa

SIM


MMI

global Large Manager Median

Foord

absa

Stanlib

oasis

10.7%

9.5%

9.2%

9.1%

8.7%

8.7%

8.5%

8.4%

8.2%

7.9%

7.8%

7.2%

5.8%

5.8%


Coronation

Investec

Prudential

allan gray


SIM

Foord

global Large Manager Median

oMIgSa

MMI

oasis

absa

Stanlib

14.4%

14.1%

13.9%

13.6%

13.6%

13.0%

12.5%

12.3%

12.3%

12.3%

12.1%

11.4%

11.0%

10.6%

3 YEARS *5 YEARS

SYGNIA SECURITIES

SIGNIFICANT CONTRIBUTION TO EARNINGS BASED ON:

Transacting on behalf of all of Sygnia’s index-tracking products (unit trusts and ETFs)Transition management on behalf of: › Large institutional clients › Sygnia’s institutional products › Sygnia’s unit trusts

Benefits accruing from the acquisition of Sygnia Itrix – clients who invest in Sygnia Itrix ETFs, via Sygnia LISP, use Sygnia Securities automaticallyBenefits accruing from the acquisition of Sygnia Itrix – clients who invest in Sygnia

LOOKING AHEAD

PLANS FOR 2018: WE HAVE NEVER BEEN MORE EXCITED ABOUT OUR PROSPECTS

Launch of innovative ETFs (domestic and international)

International organic expansion through the launch of innovative products and distribution of those in the UK e.g. Sygnia 4th Industrial Revolution Global Equity Fund

Increasing the size of SURF through acquisitions and strategic partnerships

Launch of an innovative retail distribution model, which should gain traction relatively quickly and enhance Sygnia’s retail AuM

Rebranding of Sygnia to better reflect the international trend towards consumer-friendly advertising

Significant expansion of Sygnia’s retail sales team to translate the increasing awareness of Sygnia’s brand into an awareness of its product offering

Expansion of Sygnia Securities’ capabilities

awareness of Sygnia’s brand into an awareness of its product offering

QUESTIONS

DISCLAIMERSYGNIA LIMITED (“SYGNIA”) IS A SPECIALIST FINANCIAL SERVICES GROUP HEADQUARTERED IN SOUTH AFRICA THAT FOCUSES ON THE PROVISION OF INVESTMENT MANAGEMENT AND ADMINISTRATION SOLUTIONS TO INSTITUTIONAL AND RETAIL CLIENTS LOCATED PREDOMINANTLY IN SOUTH AFRICA.

The information and opinions contained in this presentation are of a general nature and are not intended to address the circumstances of a particular individual or entity. The information in this presentation is not intended, nor does it constitute, financial, tax, legal, investment, or other advice. Sygnia does not act as an advisor or in a fiduciary capacity towards the recipient(s).

Whilst reasonable care was taken to ensure that the information contained in this presentation is accurate, Sygnia does not warrant its accuracy and accepts no liability in respect of any damages and/or loss suffered as a result of reliance on the information in this presentation. Sygnia’s business procedures, processes and policies and its business structure may change from time to time and may differ at certain times from that presented herein.

Where information has been provided on investments, please note that different investments may have different risks associated with them. In particular, fund of hedge fund products may pose risks that are different to those associated with investments in traditional asset classes. Full disclosure of all risks associated with the investments and investment strategies contained in this presentation (and in particular the specific risks associated with investments into funds of hedge funds) is available on request from Sygnia, and no decision regarding investments should be taken without having obtained professional advice thereon, and without having investigated the risks inherent thereto.

COPYRIGHT AND CONFIDENTIALITY:This presentation and its content is owned by the Sygnia Group and is protected by copyright and other intellectual property laws. All rights not expressly granted are reserved. This presentation contains confidential information and is intended only for the individuals who were present at this presentation or who received a copy of this presentation directly from Sygnia. The purpose of the confidential information presented is solely to enable an assessment of the services provided by Sygnia and may not be used for any other purpose. The confidential information contained herein may not be distributed or reproduced for any reason whatsoever without first having obtained Sygnia’s express written permission to do so. Any breach of Sygnia’s confidentiality requirement

may result in damages and/or financial loss to Sygnia and Sygnia reserves the right to recover such damages or loss from any person or entity that is in breach of this requirement.

INTER-GROUP RELATIONSHIPS:Financial products such as policies of insurance and/or collective investment schemes described in this presentation are issued by Sygnia Life Limited and Sygnia Collective Investments RF, companies that are related by common shareholding to Sygnia. Sygnia has a conflict of interest policy to manage any potential conflicts of interest that may occur. This policy is available on request.

FINANCIAL SERVICE PROVIDERS IN THE GROUP:Sygnia Asset Management: CAT II/IIA Discretionary FSP (FSP Registration No. 873)Sygnia Life Limited: CAT I/II/IIA FSP (FSP Registration No. 2935)Sygnia Financial Services: CAT I/II/III LISP and approved Section 13 B Administrator (FSP Registration No. 44426)Gallet Retirement Fund Administrators: CAT I FSP and approved Section 13 B Administrator (FSP Registration No. 5538 and Section 13 B Registration No. 24/80)Gallet EB Support Services: CAT I FSP (FSP Registration No. 5667)Sygnia Securities: CAT I FSP and member of the JSE (FSP Registration No. 45818)

INFORMATION REGARDING SYGNIA:Physical Address: 7th Floor, The Foundry, Cardiff Street, Green Point, 8001 Postal Address: PO Box 51591, Waterfront, 8002Tel: 021 446 4940 Fax: 021 446 4950Email: [email protected]

Sygnia Securities: CAT I FSP and member of the JSE (FSP Registration No. 45818)Sygnia Securities: CAT I FSP and member of the JSE (FSP Registration No. 45818)

Physical Address: 7th Floor, The Foundry, Cardiff Street, Green Point, 8001Physical Address: 7th Floor, The Foundry, Cardiff Street, Green Point, 8001

2017 financial results - sygnia · statement of financial position ˜corporate˚ balance sheet at...

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