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* An exclusive transcript of an interview conducted on SAfm Market Update earlier this month.

SAfm Market Update’s host Jimmy Moyaha converses with Magda Wierzycka, the founder and CEO of Sygnia …

JIMMY MOYAHA: Let’s explore a positive story amidst our discussions on business triumphs. Our next guest is an extraordinary woman who has founded and led a R300 billion asset management firm in South Africa, built solely through her intelligence, intuition, and remarkable courage.

Joining us is Magda Wierzycka, founder and CEO of Sygnia Asset Management, here to discuss her inspiring business journey and the milestones that brought her to where she is now. Thank you for your time, Magda.

Looking back at your time at Pretoria Girls High, did you imagine making such a significant mark on the world?

MAGDA WIERZYCKA: While I may not have wholly changed the world, the answer is no. When I arrived in South Africa, I was heavily focused on learning English and Afrikaans, as I was not proficient in either language. My main objective was to pass my exams.

I was primarily concerned with figuring out how to finance my university studies since my parents immigrated with very little, leaving us without any resources for my education.

Securing funds for my university education was far more pressing for me than planning a career in business.

JIMMY MOYAHA: So, speaking of funding, how did Sygnia come to be founded in November 2006? After high school, obtaining your degree, and gaining experience at Coronation, what happened in November 2006 that drove you to start this business?

MAGDA WIERZYCKA: I believe the journey actually started even earlier, after I finished my actuarial science degree. At that time, I didn’t fully grasp the material, but my scholarship required four years of work at Southern Life. About six months in, I realized that actuarial science was not my passion; it was exceedingly tedious, and I found myself in a highly intellectual environment.

Eventually, I managed to shift to the asset management sector at Southern Life, and after a brief stint as an investment consultant at Alexander Forbes, I landed at Coronation Fund Managers, which was a startup with only five employees.

At Coronation, I took up various responsibilities; I was integral in building the company and gained essential experience across different areas, including administration, marketing, and client relations.

My encouraging start at Coronation allowed me to expand my skill set since I was involved in multiple aspects of the business.

Fast forward six-and-a-half years, Coronation went public on the JSE. Following all that had transpired, I became determined to leave my position. The thrill of departing from Coronation was intoxicating and motivating.

However, after the excitement wore off, I started to question my choice to resign. Within two days, I found myself at a lawyer’s office registering my own business. Despite having no staff or financial backing at that time in 2003, I soon needed to take out a bond just to lease a small office.

In six months, a well-known media figure, Mzi Khumalo, who spent 13 years on Robben Island with Nelson Mandela, contacted me. Having become rich through unique B-BBEE deals, he had acquired African Harvest Fund Managers and sought someone to lead it. He proposed, “Magda, you have a business; I have a business, let’s collaborate.” However, I realized he didn’t have a business; he was simply managing a financially troubled company.

I quickly took control of African Harvest. Three years later, Mzi reached out telling me to sell the company, giving me merely two weeks to finalize the sale.

Despite being inexperienced in corporate transactions, I adapted quickly. We successfully sold African Harvest to Cadiz, which no longer exists. This marked a pivotal point in my career.

Meanwhile, as I was selling to Cadiz, a few former colleagues approached me, expressing their eagerness to continue working with me rather than be sold off. They compiled a list of those willing to join me.

The birth of Sygnia …

I had no definitive plan or vision for Sygnia at that moment. However, with many individuals looking to me for leadership, I found myself renting office space at the V&A Waterfront to accommodate six or seven people. As we gathered around a boardroom table, I asked, “Where’s our business plan? Oh, right, we don’t have one. So, what’s next?”

That’s how Sygnia came to life. We erected a whiteboard and agreed that copying others wouldn’t work.

Being experts in financial services, we resolved to steer clear of imitating competitors like Coronation, Investec, or Old Mutual, as larger companies could easily overshadow us. Thus, our focus shifted to innovation.

We envisioned asset management but aimed to set ourselves apart through low fees, transparency, and straightforward communication with clients – ultimately introducing technology into our processes.

We had one brilliant tech wizard among us, who is still a vital part of Sygnia today. I focused on acquiring clients, while he dedicated himself to developing our operations.

This is how we began, eventually attracting institutional investors by prioritizing passive management and index tracking, which marked the beginning phase of Sygnia.

JIMMY MOYAHA: Magda, you mentioned a significant point about not wanting to work for another man. Given your assertive personality, can you shed light on some challenges you confronted along the way? Did you encounter unique obstacles, particularly as a woman in a male-dominated industry?

MAGDA WIERZYCKA: The uniqueness of my journey emerged early in my career, especially within an asset management firm. The competitive vibe of the industry, characterized by bonus structures and significant payouts, often unveils the less admirable aspects of human nature.

In such an environment, aggressiveness thrives as bonuses are limited, creating fierce competition among peers to maximize earnings, which inadvertently alienates women.

Women exiting the industry

I’ve previously mentored many women in asset management who ultimately decided to leave. Whenever I asked them why, the response was always the same: “Magda, who wants to endure this hostility?”

Women generally prefer collaboration and unity over competition. Despite typical teenage conflicts, they genuinely aspire to work together.

As a result, many women withdrew from asset management, leading to a predominantly male industry, a situation that persists today.

In reality, my motivation was not primarily about possessing exceptional skills to thrive in this male-centric field.

‘Black tax’

Much of my knowledge stems from being a refugee, shouldering similar burdens as many South Africans concerning ‘black tax’.

With every advancement, there’s an inherent expectation to support relatives, both immediate and those back in Poland, which has driven me to financially support them.

When I began my tenure at Coronation, the salary and bonuses were substantial. I never saw quitting as an option since my family’s dependence on me highlighted the importance of my employment.

I often refer to a strategy of dissociation – which psychologists may disapprove of – but whenever I find myself in meetings with numerous men sharing their insights, I visualize myself in a safe space. Any criticism directed at me becomes like a frog sliding off a transparent barrier — it allows me to stay composed and logical during discussions.

This strategy has empowered me to flourish, combined with my desire to make my own choices and decisions, ensuring I’m responsible for myself without external pressures.

JIMMY MOYAHA: Magda, your determination, courage, and resilience have undoubtedly guided you to this point. You’ve encountered tough choices throughout your career.

One notable decision was your unconventional choice to blow the whistle on the Gupta leaks amidst the revelations of state capture. You opted to disclose information that had potential consequences for your life and career.

Read: Empowering SA’s women through financial independence and security

MAGDA WIERZYCKA: To provide context, I’ll take a step back prior to the Gupta leaks, reflecting on the years of state capture.

From an investment perspective, it became apparent how politics influenced economic declines. I began vocalizing concerns about state capture, hoping to rally fellow CEOs and business leaders for support, but often found myself isolated.