The Sygnia 4th Industrial Revolution Global Equity Fund is an investment vehicle attuned to the transformative trends of the Fourth Industrial Revolution. This era is distinguished by a fusion of technologies that blur the lines between the physical, digital, and biological spheres.
The fund aims to expose investors to global companies poised to benefit from advancements in new technologies and innovations. Such companies span a diverse array of sectors and are considered to be at the forefront of reshaping the global economy.
Sygnia’s offering includes both actively managed funds and index-tracking funds, like the Sygnia Itrix 4th Industrial Revolution Global Equity ETF.
This Exchange Traded Fund (ETF) is listed on the Johannesburg Stock Exchange and offers a passive investment strategy. It is designed to track the movements of an index composed of companies involved in the development and application of new technologies.
Investors interested in capitalising on the rapid pace of technological change may find these funds and ETFs an enticing proposition. They present an opportunity to invest in a portfolio of companies that are innovating within fields such as artificial intelligence, robotics, quantum computing, biotechnology, and renewable energy.
The higher-risk nature of such investments reflect the potential for significant growth attributed to companies that lead the charge in the fourth industrial revolution.
Understanding the 4th Industrial Revolution
The 4th Industrial Revolution represents a fundamental shift in the way we live and work, integrating new technologies across various sectors, transforming the global economy and shaping future innovations.
Foundations of the 4th Industrial Revolution
The 4th Industrial Revolution builds on the digital revolution, where technological breakthroughs are merging the capabilities of both the physical and digital spheres. Key technologies include robotics, artificial intelligence, nanotechnology, and quantum computing.
The utilisation of 3D printing and autonomous vehicles is altering production and distribution models, while drones and smart buildings embody the widespread application of sensors and connectivity.
Implications and Innovations
These technological advancements yield profound implications and innovations across all industries.
- Healthcare: Devices like wearables are revolutionising patient monitoring, enabling personalised medicine through real-time data.
- Cybersecurity: As dependence on digital technologies grows, robust cybersecurity measures become pivotal to protect data and maintain privacy.
- Energy: Clean tech, such as renewable energy sources and energy-efficient technologies, is pivotal for sustainable growth.
- Space Exploration: Advancements in technology have rejuvenated interest and investment in space, potentially leading to new resource frontiers.
- Virtual Reality: VR is reshaping entertainment, education, and training, offering immersive experiences across domains.
Nanotech and innovations in materials science contribute to more durable and lightweight products, affecting sectors like construction and transport, just as advancements in virtual reality and augmented reality revolutionise the user experience in multiple settings.
Sygnia’s Role in the New Era
Sygnia Asset Management has positioned itself at the forefront of investment opportunities within the fourth industrial revolution, leveraging its expertise and forward-thinking strategies to cater to the evolving economic landscape.
Sygnia 4th Industrial Revolution Equity Funds
The Sygnia 4th Industrial Revolution Global Equity Fund is a cornerstone of Sygnia’s offering, designed to provide investors access to companies driving innovation in the digital, physical, and biological spheres. It is dynamically managed, constantly adjusting allocations across sectors that are integral to new technological advancements.
On the other hand, the Sygnia Itrix 4th Industrial Revolution Global Equity ETF offers an exchange-traded fund option, tracking indices pertinent to the new economy and allowing for a diversified investment vehicle.
Investments target influential players such as Meta Platforms Ord Shs Class A and Microsoft Ord Shs, enterprises at the forefront of transforming global technology and business practices.
Through investments in firms like Teledyne Technologies Ord Shs and Leidos Holdings Ord Shs, Sygnia taps into cutting-edge industrial and defence sectors. Other holdings might include PTC Ord Shs for their involvement in digital transformation technologies, Coinbase Global Ord Shs Class A reflecting growth in blockchain and fintech domains, as well as Elbit Systems Ord Shs, signifying Sygnia’s interests in the defence and security sectors.
Investment Strategies and Technologies
Sygnia Asset Management utilises a proprietary investment approach, systematically identifying prospects across a broad array of sectors that stand to benefit from technological breakthroughs.
Sygnia, an authorised financial services provider, emphasises robust algorithmic analyses and data-driven decisions in constructing its 4th industrial revolution fund offerings. Their strategies also consider major industry indices, incorporating insights from comprehensive analytics firms.
The funds are overseen by Sygnia Collective Investments RF (Pty) Ltd, a registered and approved manager, ensuring compliance and due diligence across all investment decisions.
By aligning with entities that are pivotal to the technological metamorphosis, such as through its Sygnia Itrix brand, Sygnia reaffirms its commitment to providing sophisticated and accessible investment solutions in this new era of economic growth.
Investment Performance and Fees
When assessing Sygnia’s 4th Industrial Revolution Global Equity Fund, it’s crucial to consider both the historical performance and the fees applied. Fees can impact the overall returns, and performance can vary based on market conditions and the fund’s holdings.
Evaluating Fund Performance
The Sygnia 4th Industrial Revolution Global Equity Fund aims to invest in global companies positioned to benefit from technological advancements. Performance is influenced by asset allocation to various equities that embody the 4th industrial revolution theme.
The fund is dynamically-managed, which means it adapts its holdings in response to market changes. This dynamic management seeks to maximise capital accumulation through both higher returns and outperformance, but also may imply higher volatility.
- Historical performance indicators such as annual returns and volatility are essential to gauge how investments have navigated market conditions.
- Annual Return: Calculated over a 12-month period, expressing the fund’s total return.
- NAV (Net Asset Value): Reflects the per-unit value of the fund based on its total assets minus liabilities.
- Volatility: Indicates the degree of variation in the fund’s performance, affecting risk profile.
Understanding Fees and Expenses
Investing in the Sygnia 4th Industrial Revolution Global Equity Fund involves certain fees that can affect the net returns for investors. The fees are outlined in the fund’s disclosures and are crucial for investors to understand.
- Management Fees: A charge applied annually for the management of the fund. For the Sygnia 4th Industrial Revolution Global Equity Fund, this fee is 0.70%.
- Performance Fee: This fee, at 0.79%, is applied if the fund achieves certain performance benchmarks.
- Other Expenses: Includes operational costs amounting to an estimated 0.04%.
- VAT: Levied on the above fees, totalling around 0.21%.
A consolidated view of the fees can be seen in the Total Expense Ratio (TER), which for December 2023 stood at 1.64%. The Transaction Costs (TC) represent additional costs incurred during the buying and selling of assets, at 0.10% for December 2023.
The above figures are illustrative as of December 2023 and are subject to change. Investors should always review the latest fund documentation for up-to-date fee structures.
Importantly, irrespective of the fund’s performance, management fees and other expenses are mandatory, whereas performance fees only apply when specific benchmarks are exceeded. Investors should consider that high-risk investments like the Sygnia Itrix 4th Industrial Revolution Global Equity ETF tend to have higher fees in line with the active management and strategic allocation they entail. Investors must factor in these expenses when calculating their potential net gains from their investment in the fund.
Regulatory Framework and Compliance
This section examines the legal and regulatory environment of the Sygnia 4th Industrial Revolution Global Equity Fund, alongside the inherent investor protections and accountability mechanisms.
Legal and Regulatory Environment
The Sygnia 4th Industrial Revolution Global Equity Fund operates within a stringent legal and regulatory framework in South Africa. It’s registered as a collective investment scheme, adhering to the Collective Investment Schemes Control Act (CISCA).
The Johannesburg Stock Exchange (JSE) provides a platform for the fund’s Exchange Traded Fund (ETF), the Sygnia Itrix 4th Industrial Revolution Global Equity ETF, which allows for transparency and regulated trade.
As part of its compliance, the fund must also disclose relevant information through the Minimum Disclosure Document (MDD), which provides investors with essential data including the Total Expense Ratio (TER).
Sygnia Asset Management (Pty) Limited, the entity managing the fund, is licensed as an Authorised Financial Services Provider in South Africa.
Investor Protections and Accountability
Investor protections are central to the fund’s operations. One of the key protective measures is the adherence to sectoral allocations and indices, ensuring a diversified investment approach.
The fund tracks the Kensho New Economies indices, contributing to the passively managed nature of the ETF. This reduces the risks associated with active management.
The fund is also overseen by the Association for Savings and Investment SA (ASISA), which further supports investor interests. The association’s Support Centre provides investors with additional resources and assistance, ensuring accountability and answers to any queries they might have.
The Global-Equity-General classification of the fund denotes its broad investment base, reflecting an alignment with international market practices and investor protection norms.
Frequently Asked Questions
The following common queries offer insights into the performance, resources, investment strategy, and unique aspects of the Sygnia 4th Industrial Revolution Global Equity Fund.
What is the historical performance of the Sygnia 4th Industrial Revolution Global Equity Fund?
The Sygnia 4th Industrial Revolution Global Equity Fund has experienced variable performance. It had a notable increase of 27.8% in one quarter, matching its benchmark, the Kensho New Economies Composite Index.
Where can I find the latest fact sheet for the Sygnia 4th Industrial Revolution fund?
The latest fact sheet for the fund is typically accessible through Sygnia’s official website or by directly contacting them for the most recent updates and detailed information.
Can I get information on the investment approach of the Sygnia 4th Industrial Revolution Global Equity Fund Class B?
Information about the investment strategy of the Class B fund can be found on Sygnia’s website or by enquiring with their investment consultants. They will detail how the fund capitalises on technological advances in various sectors.
How has the Sygnia 4th Industrial Revolution Global Equity Fund Class A been priced historically?
Class A’s historical pricing can be obtained by reviewing the fund’s price history posted on financial services websites or by requesting past performance data from Sygnia directly.
What future forecast can be expected for the Sygnia 4th Industrial Revolution investments?
Future forecasts are speculative. However, current trends suggest that sectors within the 4th Industrial Revolution may continue to advance, potentially benefiting funds invested in these areas.
What distinguishes the Sygnia 4th Industrial Revolution offerings from the Sygnia FAANG Plus Equity Fund?
The Sygnia 4th Industrial Revolution Global Equity Fund focuses on a broader range of technologies that merge physical, digital, and biological realms. Meanwhile, the FAANG Plus Equity Fund is concentrated on a select group of high-performing technology companies.