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* A distinctive 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 storyline amid our discussions on business achievements. Our next guest is an extraordinary individual who has built and managed a R300 billion asset management firm in South Africa, all through her intelligence, intuition, and remarkable courage.
I’m joined by Magda Wierzycka, the founder and CEO of Sygnia Asset Management, to share her motivating business journey and how she achieved her current status. Thank you for being here, Magda.
When you think back to your days at Pretoria Girls High, did you ever foresee making a significant impact on the world?
MAGDA WIERZYCKA: While I may not have entirely transformed the world, the answer is no. When I arrived in South Africa, I was mainly focused on learning English and Afrikaans, as I was not fluent in either language. At that time, my primary goal was simply to pass my exams.
My top priority was figuring out how to finance my university education since my parents immigrated with very little money, leaving us without any financial resources for my schooling.
I was much more concerned with securing funds for my university studies than strategizing my career path in business.
JIMMY MOYAHA: So, speaking of funding, how did Sygnia come into being in November of 2006? After finishing high school, obtaining your degree, and gaining experience at Coronation, what unfolded in November 2006 that led you to launch this business?
MAGDA WIERZYCKA: I think this journey started even earlier, right after I completed my actuarial science degree. I didn’t fully understand the subject at the time, but I had a scholarship that required me to work at Southern Life for four years. Six months in, I realized that actuarial science wasn’t for me; it was dreadfully tedious, and I was surrounded by much more intelligent individuals.
Eventually, I transitioned to the asset management division at Southern Life, which led to a brief stint as an investment consultant at Alexander Forbes, and then to Coronation Fund Managers, which was essentially a startup with just five employees back then.
At Coronation, I embraced various roles and responsibilities; I was deeply involved in growing the company and gained invaluable experience across different departments—from administration to marketing and client relations.
Starting my journey at Coronation allowed me to acquire a broad skill set, as I was actively involved in multiple aspects of the business.
Fast forward six-and-a-half years, Coronation went public on the JSE. Surrounded by everything that had occurred, I decided to resign. After my time at Coronation, I was set on not working for someone else again. The rush of leaving Coronation was exhilarating.
However, after that thrill subsided, I began to question my choice to resign. Within two days, I found myself at a lawyer’s office registering my own company. Although I didn’t have any staff or financial backing then, that was in 2003, I soon had to take out a bond just to lease a small office space.
Six months later, a prominent media figure, Mzi Khumalo, who spent 13 years on Robben Island with Nelson Mandela, reached out to me. Having gained wealth through unique B-BBEE deals, he had acquired African Harvest Fund Managers and was looking for someone to manage it. He proposed, “Magda, you own a business; I own a business; let’s join forces.” However, I quickly realized that he didn’t own a thriving business; he owned a struggling company.
I swiftly took charge of African Harvest. Three years later, Mzi asked me to sell the company, giving me only two weeks to finalize the sale.
Despite having no prior experience with corporate transactions, I learned quickly. We managed to sell African Harvest to Cadiz efficiently, which no longer exists today. This marked a crucial turning point in my career.
Simultaneously, a few colleagues approached me, expressing their desire to continue working alongside me rather than being sold off. They presented a list of those willing to join me.
The birth of Sygnia …
I had no clear outline or vision for Sygnia at that moment. Nevertheless, with these enthusiastic individuals looking to me for guidance, I began renting office space at the V&A Waterfront where I could accommodate 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 should we do next?”
That’s how Sygnia was born. We put a whiteboard up and concluded that imitating others wouldn’t work.
As professionals in financial services, we decided to avoid mimicking competitors like Coronation, Investec, or Old Mutual, as larger entities could easily outmaneuver us. Thus, we concentrated on innovation.
We conceptualized asset management with the intent to stand out through lower fees, transparency, and clear communication with clients—which led to the integration of technology into our operations.
We had a technical expert with us who remains part of Sygnia today. We assigned roles where I focused on acquiring clients while he concentrated on establishing our operations.
That’s how we got started, eventually attracting institutional investors as we prioritized passive management and index tracking, marking the initial phase of Sygnia.
JIMMY MOYAHA: Magda, you noted a significant point about not wanting to work for another man. Considering your strong-willed character, could you share some challenges you encountered along the way? Were there any specific obstacles in your journey, especially as a woman in a male-dominated industry?
MAGDA WIERZYCKA: The uniqueness of my journey began early in my career, particularly in an asset management setting. The competitive nature of the industry, characterized by bonus systems and hefty payouts, often reveals the worst side of human nature.
In such an environment, aggressiveness reigns as bonuses are limited, creating intense competition among colleagues to maximize their earnings, which inadvertently alienates women.
Women exiting the industry
I’ve previously counseled many women in asset management who ultimately chose to leave. Whenever I asked for their reasoning, they consistently responded: “Magda, who wants to endure this aggression?”
Women generally prefer collaboration and teamwork over competition. Regardless of the typical disputes among peers, they sincerely desire to work together.
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Consequently, many women have opted out of asset management, leading to a male-dominated field, a situation that persists even today.
To be honest, my drive wasn’t about having extraordinary skills to thrive within this male-centric industry.
‘Black tax’
Much of my experience stems from being a refugee and grappling with burdens akin to what many South Africans experience in relation to ‘black tax’.
With each step forward, there’s always an expectation to support family members, both immediate and those back in Poland, which compelled me to financially assist them.
When I started my position at Coronation, the salary and bonuses were plentiful. I never regarded quitting as an option, as my family’s reliance on me underscored the importance of my role.
I often refer to a strategy of dissociation — psychologists may disapprove — but whenever I find myself in meetings surrounded by numerous men sharing opinions, I visualize being in a protected environment. Any critique directed at me becomes like a frog sliding off a transparent barrier — it allows me to stay unaffected and level-headed during discussions.
This approach has facilitated my success, paired with my desire to make my own choices and decisions, ensuring accountability to myself without external pressure.
JIMMY MOYAHA: Magda, your tenacity, bravery, and resilience have undoubtedly guided you to this point. You’ve made significant decisions throughout your career.
One pivotal choice was your courageous decision to act as a whistleblower regarding the Gupta leaks amid the state capture fallout. You opted to reveal information that could have severe consequences for you personally and professionally.
Read: Empowering SA’s women through financial independence and security
MAGDA WIERZYCKA: To give context, I’ll rewind slightly before the Gupta leaks and reflect on the years of state capture.
From an investment perspective, it became clear how politics affected economic decline. I began voicing concerns regarding state capture, hoping to rally support from fellow CEOs and business leaders, but largely found myself isolated.
However, the true heroes in this scenario were those who risked their positions to share information and initiate change.
I wasn’t the one who uncovered the Gupta leaks; I learned about it thanks to the bravery of others. Upon reviewing the information — about 500,000 emails — impulsive decisions often arise, prompting reflections on their importance.
After consulting with lawyers regarding my discoveries, the counsel was explicit: “Leave South Africa quickly to evade potential backlash from the Guptas and disseminate this information widely for your own protection.”
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]
Thus, I traveled to London, isolating myself in a hotel room for one week, meticulously examining the emails. Many of them were exchanges between the Guptas and others, including various payment transactions.
Gupta leaks!
I organized the information into folders, categorizing them by subjects such as Eskom and Transnet. After structuring the data, I decided to prepare it for distribution—buying gloves to ensure no fingerprints would trace back to me. I duplicated the folders onto drives, sharing them anonymously with contacts who could bring this information to light.
The Sunday Times was the first publication to receive these folders, providing ready-to-publish stories that garnered significant media coverage.
This became my safeguard — the information was now in the public domain.
JIMMY MOYAHA: Your attention to detail surely contributed to this outcome! Shifting our focus to Sygnia today, which manages R350 billion in assets, how do you perceive success in your business at this juncture?
MAGDA WIERZYCKA: For me, success centers on the ability to hire individuals I genuinely value and to engage in their journeys. Given the finite nature of wealth and material assets — there’s only so much I can accumulate or experience — my fulfillment comes from empowering others.
Surrounding myself with exceptional talent and aiding their growth brings me immense satisfaction. Sygnia’s expansion has allowed me to create opportunities for more individuals with great potential.
While not every employee has a compelling backstory, many do, and it’s these narratives that deeply resonate with me. I find genuine joy in collaborating with them and contributing to their development. That, to me, defines success — sharing knowledge, facilitating growth, and playing a role in their developmental journeys.
JIMMY MOYAHA: What an inspiring story filled with invaluable insights to ponder!
We’ll wrap up our conversation here. Thank you, Magda, for sharing your time and perspectives with us. That was Magda Wierzycka, co-founder and CEO of Sygnia Asset Management, discussing her remarkable success.
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