MyMoney Online, Make Money Mondays

Why Sygnia’s Magda Wierzycka has SA’s fund managers shaking in their boots

“Asset managers are good at marketing,” says Sygnia CEO Magda Wierzycka. “A lot of money goes into creating the myth of outperformance.

“There are a lot of vested interests around protecting the revenue that you derive from active asset management so no one has been incentivised to market something where you make money out of a volume of assets at very low margins and very low fees,” says Wierzycka.

“We, obviously, hope to change that.”

The Money Show's Bruce Whitfield interviewed Wierzycka for his "Make Money Mondays" feature.

Scroll down to listen to the audio for an explanation of what “index tracking” is and how Sygnia is able to offer some of the most cost effective retirement annuities, Tax-Free Savings Accounts and other investments in South Africa.

I understand performance fees and active management. I know what active managers can and can’t deliver.

Magda Wierzycka, Sygnia CEO

Passive managers outperform active managers 82% of the time!

Magda Wierzycka, Sygnia CEO

Exchange Traded Funds have a lot of hidden costs. Do not invest in them!

Magda Wierzycka, Sygnia CEO

Treasury, only 10 days ago, said fund managers must consider index tracking as the default option for all retirement funds.

Magda Wierzycka, Sygnia CEO

Sygnia charges a total fee of 0.4%. Nobody has yet to match this in South Africa.

Magda Wierzycka, Sygnia CEO

The savings industry relies on complexity to hide how much they’re charging.

Magda Wierzycka, Sygnia CEO

Subscribe to our Business Wrap Newsletter

Subscribe to our Business Wrap Newsletter

702 welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the 702 community a safe and welcoming space for all.

702 reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

702 is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Low-cost fund manager Sygnia to list on JSE (and 2 other hot stocks)

Low-cost fund manager Sygnia to list on JSE (and 2 other hot stocks)

An analyst on why Sygnia (once it lists), Torre Industries and Consolidated Infrastructure Group are his stock picks for the week.

Do ETFs make sense when index tracker fees are lower?

Do ETFs make sense when index tracker fees are lower?

"Exchange Traded Funds have a lot of hidden costs. Do not invest in them!" says Sygnia's Magda Wierzycka. Is this fair comment?

How to extract maximum value from the new Tax Free Savings Accounts

How to extract maximum value from the new Tax Free Savings Accounts

No Capital Gains Tax, no Dividends Tax, no Income Tax from interest earned… How to get the most from a Tax Free Savings Account.

The best Tax Free Savings Accounts in South Africa

The best Tax Free Savings Accounts in South Africa

Galileo Capital Financial Advisor Warren Ingram researches Tax Free Savings Accounts and discusses his favourite ones.

Tax free savings accounts 101 (and why they’re NOT what they’re made out to be)

Tax free savings accounts 101 (and why they’re NOT what they’re made out to be)

Minister Nene formally introduced tax-free savings earlier this year. Financial Planner Gregg Sneddon's wide-ranging discussion...

How to maximise the benefits offered by Tax Free Savings Accounts

How to maximise the benefits offered by Tax Free Savings Accounts

Tax Free Savings Accounts can be powerful wealth creators, if you use them right. Here's how...

Savers rejoice! South Africa gets tax-free savings accounts on 1 March 2015

Savers rejoice! South Africa gets tax-free savings accounts on 1 March 2015

Savers rejoice! On 1 March 2015 government introduces tax free savings accounts. Financial planner Claude Hannah explains…

10 reasons why this is BY FAR the best way to save for retirement

10 reasons why this is BY FAR the best way to save for retirement

Is there a single best way to build your wealth so you can retire with dignity? Yes, there is, despite costs and limitations.

Why you need a pension fund (or retirement annuity) even if you own a house

Why you need a pension fund (or retirement annuity) even if you own a house

Many people falsely believe they do not have to save for retirement because they own the home they live in.

4 beliefs about shares that keep you from growing wealthy

4 beliefs about shares that keep you from growing wealthy

4 popular, yet patently false, beliefs about stock market investing that's holding you back.

Popular articles
Sassa cards will be functional beyond expiry date

Sassa cards will be functional beyond expiry date

Sassa says text messages making the rounds asking beneficiaries to come and renew their Sassa cards is a hoax.

Why Sisulu and Dlamini-Zuma aren't suitable Presidential candidates: analyst

Why Sisulu and Dlamini-Zuma aren't suitable Presidential candidates: analyst

ANC branch in the Eastern Cape, Z.R Mahabana, has launched a campaign backing Lindiwe Sisuslu as an ANC presidential candidate.

It's not the end of the road... Top tips to improve your matric

It's not the end of the road... Top tips to improve your matric

"Recognise that it’s not the end, it’s the beginning." Expert advise for school-leavers who want to improve their results.

Bylaws, times you may use fireworks

Bylaws, times you may use fireworks

City of Johannesburg has urged residents to respect by-laws and the times set for fireworks to be used.

‘I started my thriving business with R5000 (and made a profit in the 1st month)’

‘I started my thriving business with R5000 (and made a profit in the 1st month)’

After 3 years there are 3 Nic Harry stores (incl online) that sell 100 000 pairs of socks in over 20 countries around the world.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...

Blesserfinder: Matching you with a sugar daddy near you

Blesserfinder: Matching you with a sugar daddy near you

Is social trend Blesserfinder, where girls are allegedly matching up with rich 'benefactors' in exchange for sex, a real thing?