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* A unique transcript of an interview conducted on SAfm Market Update earlier this month.
SAfm Market Update’s host Jimmy Moyaha speaks with Magda Wierzycka, founder and CEO of Sygnia …
JIMMY MOYAHA: Let’s explore a positive narrative while discussing business success. Our next guest is an extraordinary woman who has built and led a R300 billion asset management enterprise in South Africa, achieved solely through her intelligence, intuition, and remarkable courage.
On the line, we have Magda Wierzycka, the founder and CEO of Sygnia Asset Management, here to share her inspiring business journey and the path that led her to her current success. Thank you for joining us, Magda.
Looking back to your early days at Pretoria Girls High, did you foresee making a substantial impact on the world?
MAGDA WIERZYCKA: While I don’t believe I’ve completely transformed the world, my answer is no. Upon arriving in South Africa, my primary focus was on learning English and Afrikaans, as I was not proficient in either language. My main goal was to pass my exams.
My primary concern was finding a way to fund my university education, especially since my parents immigrated with minimal resources, leaving us without financial support for my studies.
I was far more focused on securing funding for my university education than planning a career in business.
JIMMY MOYAHA: So, regarding funding, how did Sygnia come into existence in November 2006? After completing high school and your tertiary education and gaining experience at Coronation, what led you to start this business venture in November 2006?
MAGDA WIERZYCKA: This journey actually began even earlier, after I completed my actuarial science degree. At that time, I didn’t fully understand the subject, but I had a scholarship that required four years of work at Southern Life. Six months in, I realized that actuarial science wasn’t my passion; it felt tedious, and I was surrounded by exceptionally bright colleagues.
Eventually, I transitioned to the asset management division at Southern Life, then held a brief position as an investment consultant at Alexander Forbes, before moving to Coronation Fund Managers, which was virtually a startup back then with just five employees.
At Coronation, I took on numerous roles and responsibilities; I was deeply involved in building the company and gained invaluable experience across a range of areas, from administration and marketing to client relations.
My fortunate start at Coronation allowed me to develop a broad skill set as I engaged in various aspects of the business.
Fast forward six-and-a-half years later, Coronation went public on the JSE. Following everything that transpired, I made the decision to resign. After my time at Coronation, I was resolute about not working for anyone else again. The adrenaline rush of leaving Coronation was exhilarating.
However, after the excitement waned, I found myself contemplating my resignation. Within two days, I was at a lawyer’s office registering my own business. Although I had no staff or financial backing at that time in 2003, I soon had to take out a loan just to rent a small office.
Within six months, a well-known media figure, Mzi Khumalo, who had spent 13 years on Robben Island with Nelson Mandela, reached out to me. After amassing wealth through distinct B-BBEE deals, he had acquired African Harvest Fund Managers and was looking for someone to manage it. He suggested, “Magda, you have a business; I have a business; let’s collaborate.” I quickly realized that he didn’t have a business; he had a company that was struggling financially.
Before I knew it, I was running African Harvest. Three years later, Mzi phoned me to instruct me to sell the company, giving me just two weeks for the transaction.
Even without any prior experience in corporate transactions, I adapted quickly. We managed to sell African Harvest to Cadiz rapidly, which, it turns out, no longer exists today. This was a pivotal moment in my career.
At the time I was selling to Cadiz, some of my colleagues expressed a desire to stay with me rather than be sold off. They provided a list of those willing to join me.
The inception of Sygnia …
At that moment, I had no specific plan or vision for Sygnia. However, with all these enthusiastic individuals looking to me for guidance, I found an office to rent at the V&A Waterfront where I could fit six or seven people. We gathered around a boardroom table, and I asked, “Where’s our business plan? Oh right, we don’t have one. So what’s next?”
That’s how Sygnia came to be. We put a whiteboard up and concluded that imitation was not feasible.
Being experts in financial services, we decided to steer clear of mimicking competitors like Coronation, Investec, or Old Mutual, as larger firms could easily overshadow us. Instead, we opted for innovation.
We conceptualized asset management focused on differentiation through low fees, transparency, and avoiding jargon in our client interactions, leading to the integration of technology in our operations.
We had one technical genius among us who is still with Sygnia today. We divided responsibilities, with me engaging clients while he worked on establishing our operations.
This marked our beginning, gradually attracting institutional investors as we prioritized passive management and index tracking, which initiated the growth of Sygnia.
JIMMY MOYAHA: Magda, you’ve highlighted a critical point about not wanting to work for another man. Given your strong-willed nature, can you share some challenges encountered along the way? Were there any specific hurdles in your journey, particularly being a woman in a male-dominated industry?
MAGDA WIERZYCKA: The uniqueness of my path began early in my career, especially within an asset management company. The competitive landscape is often characterized by bonus structures and significant payouts, frequently unearthing the worst traits of individuals.
In such an environment, aggression thrives as bonuses are limited, fostering intense competition among colleagues to maximize their earnings, which inadvertently alienates women.
Women leaving the industry
Throughout my experience, I’ve encountered many women in asset management who ultimately decided to leave. Each time I asked why, the response was similar: “Magda, who wants to endure this hostility?”
Women typically prefer collaboration and teamwork over competition. Despite any usual teenage conflicts, they genuinely wish to work together.
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As a result, many women opted out of asset management, fostering a male-dominated field, a reality that remains today.
In truth, my motivation wasn’t solely about having specialized skills to navigate a male-centric industry.
‘Black tax’
Much of my experience is derived from being a refugee, carrying burdens similar to those many South Africans face regarding ‘black tax’.
With every advancement comes the expectation to support family members, both immediate and those back in Poland, a responsibility which compelled me to provide financially for them.
When I began my career at Coronation, my salary and bonuses were quite good. I never considered quitting to be an option since my family’s dependence on me emphasized the necessity of my position.
I often reference a strategy of dissociation – likely frowned upon by psychologists – but whenever I find myself in meetings with multiple men opining, I visualize being in a protective environment. Any critique directed at me becomes akin to a frog slipping off a transparent barrier — it allows me to remain unfazed and rational during discussions.
This technique has been beneficial for my success, combined with my desire to make independent choices, ensuring I am accountable to myself without outside pressures.
JIMMY MOYAHA: Magda, your determination, audacity, and fortitude have undeniably led you to this point. You’ve faced difficult decisions throughout your career.
One crucial decision was your unconventional choice to act as a whistleblower regarding the Gupta leaks amid the state capture revelations, risking potential consequences for your life and career.
Read: Empowering SA’s women through financial independence and security
MAGDA WIERZYCKA: To provide some context, let me backtrack a bit before the Gupta leaks, reflecting on the years of state capture.
From an investment viewpoint, it became apparent how politics impacted economic decline. I began voicing my concerns about state capture, hoping to unite fellow CEOs and business leaders for support but found myself largely isolated.
During this time, I also considered myself somewhat of a forensic investigator. I uncovered cases of white-collar crime and corruption involving companies like NetOne, which have always intrigued me.
Yet, the true champions in this scenario were those who took risks to share information and instigate change.
I didn’t discover the Gupta leaks myself; I learned about them through the bravery of others. Upon reviewing the information — approximately 500,000 emails — spontaneous decisions often arise, making one consider their importance.
After consulting with lawyers about my findings, the guidance was unambiguous: “Leave South Africa quickly to avoid potential ramifications from the Guptas and widely share this information to protect yourself.”
Read/listen:
Magda Wierzycka puts up bounty in hunt for the Guptas [Feb 2018]
Corruption in SA a destructive spiral [Dec 2017]
McKinsey, KPMG targeted as Gupta scandal widens [Sept 2017]
Sygnia CEO expresses dismay at ‘deafening silence’ from business [July 2017]
As a result, I traveled to London, secluding myself in a hotel room for a week while meticulously analyzing those emails. Many were exchanges between the various Guptas and others, including numerous payment transactions.
Gupta leaks!
I organized the findings into folders, categorized by topics like Eskom and Transnet. Once structured, I decided to package the information for distribution — even purchasing gloves to ensure my anonymity. I copied the folders onto drives, which I then anonymously disseminated to contacts who would bring this information to light.
The Sunday Times was the first news outlet to receive these folders, ready to publish narratives that led to significant media attention.
This ensured my safety — the information was now public.
JIMMY MOYAHA: Your attention to detail certainly played a significant part in this outcome! Shifting our focus to Sygnia today, managing R350 billion in assets, how do you define success in your business at this point?
MAGDA WIERZYCKA: For me, success is about the ability to employ people I genuinely appreciate and participate in their growth. Given the finite nature of wealth and material possessions — there’s only so much I can obtain or experience — my fulfillment comes from nurturing others.
Being surrounded by amazing talent and fostering their growth is what genuinely brings me joy. Sygnia’s growth has allowed me to create opportunities for more individuals with incredible potential.
While not all employees have compelling backstories, many do, and those narratives resonate deeply with me. I find genuine happiness in collaborating with them and supporting their development. That’s my definition of success — sharing knowledge, aiding others in their growth, and being part of their developmental journeys.
JIMMY MOYAHA: What an extraordinary narrative filled with invaluable lessons to ponder!
We’ll wrap up our conversation here. Thank you, Magda, for sharing your time and insights with us. That was Magda Wierzycka, co-founder and CEO of Sygnia Asset Management, discussing her remarkable journey.
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