When it comes to the delivery of financial services, the world is gradually moving from the use of traditional financial methods to innovative and modern methods. Gone are the days when people use to spend so many hours in getting their financial services delivered. This challenging issue created the need for establishing modern financial institutions like Sygnia to overcome them.
What is Sygnia
Sygnia is a financial technology company which is based in South Africa. It is listed to the main board of the JSE.
How does Sygnia work?
This financial technology company works by providing asset management, stockbroking, and administration services. In addition, it also provides a wide range of saving products to both institutional and retail clients. It uses an advanced technological system to ease financial transactions.
Sygnia has over 200 qualified staff members who are regularly working hard to meet the needs of all their clients. When compared to other financial technology companies, we realize that Sygnia is deeply advanced and focused on innovation through technology. It has offices in Durban, Cape Town, and Johannesburg. It has over 6000 individual clients who are satisfied with its services.
This company has over R223 billion in assets under administration and management. Since its launch in 2012, it has R27 billion unit trusts. It displays an advanced market disruptor business strategy. It has over 600 institutional clients around the world. It is one of the most cost effective saving products in South Africa.
How does Sygnia keep fees very low?
Sygnia is characterized by low cost and low fees. It’s just normal to be asking yourself how is this possible and why is it considered so. Whatever the case, we are going to drill you in this topic. Being pioneers in the field of index tracking within South Africa, this company believes that the country is able and should access excellent investments at the most competitive market prices.
They implement a passive strategy which is highly cost effective and very easy to execute since it simply has to do with trying to copy the index. Hence, there is just no need to employ analysts or managers who are required to decide when to purchase and sell shares. Yet they are efficient enough to provide consistent performance that outstands them by far when compared with their actively managed competitors.
Sygnia is working towards becoming one of the best and biggest index-tracking asset manager in South Africa. It is due to this that they turn to offer the best value proposition to all their clients. Still in the same line towards achieving this goal, they offer a total fee of 0.35% ex Vat per year. This is eventually the lowest charge in South Africa. This charge even goes up to the point of standing the test of time when compared with international standards.
The majority growth of this company is attributed to its use of a leading technology. The company has the ability to offer both efficient and cost effective services to all its clients. Another way that they use in keeping costs down is by not outsourcing. It is also worth noting here that Sygnia does not charge fee when people are moving their assets to its platform.