Jean Pierre Verster explains why he likes Sygnia

Jean Pierre Verster, founder and CEO of Protea Capital Management, said Sygnia is a good business with a strong investment case.

Sygnia, founded in 2006 by Magda Wierzycka, is a South African financial services company headquartered in Cape Town.

It offers a range of investment and retirement solutions, including unit trusts, ETFs, and retirement annuities. It is known for its low fees and innovative solutions.

The company has shown strong growth over the last two decades, with its assets under management and administration reaching R350 billion.

The Sygnia share price had a good run, increasing by 27% year-to-date in 2025 from R22 per share to R28 per share.

This strong performance raised the question of whether there is more upside in the share and whether it remains a good investment.

Verster remains bullish on Sygnia, saying he liked the business and that the company’s branding is very good.

“They have a very good mix between low-cost products and high-cost products, and they have been growing the retail side of the business well,” he said.

That means that Sygnia can have positive branding related to their low-cost products and create excitement around their high-cost products.

“They even have a passive fund that tracks an index that charges a performance fee. Theirs is the only such fund that I know of that does that,” he said.

Verster added that he does not agree with everything Sygnia CEO Magda Wierzycka says and does. However, the company is bigger than the chief executive.

Alex Duys, chief investment officer at Umthombo Wealth, shared Verster’s view, saying he also likes Sygnia as an investment.

“Sygnia remains a rare growth story in South Africa. It can most likely achieve double-digit growth for some time,” he said.

The company also has strong cash earnings, which support a good dividend and make it attractive to a broader group of investors.

Sygnia is also an attractive acquisition target, which means there may be mergers and acquisitions linked to the company.

Duys added that their strength in the retail market, where there are still good growth opportunities with bigger margins, positions Sygnia well for the future.

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