Investing in highly liquid government-backed securities in public markets with intra-day pricing. Ring-fencing of assets away from high street banks where cash deposits carry balance sheet risk
A diversified fund of high quality fixed income securities designed to provide a solution for cash
*Overnight risk free interest rate N.B. While portfolio volatility is expected to be very low, the value of your investment may fluctuate and there can be no assurance that targeted returns will be realised.
For many, cash deposits
are a lost opportunity
to grow their wealth
Many investors remain in cash because they are worried about the current market conditions. As a consequence, they have seen their capital erode and have suffered important opportunity costs over time.
We’re challenging the market with Signia’s Sovereign Fund
Strategy and Holdings
The strategy invests only in high quality investment grade sovereign and supranational bonds.
The fund will always carry a very high quality average credit rating of between AA- and AAA to protect capital and minimise credit risk as much as possible
This can be seen in the strategy’s performance this year throughout the coronavirus crisis where it has generated consistently positive returns
We focus on combining country selection with yield curve management in order to generate returns in excess of the sterling overnight risk free interest rate
| Features | Cash Deposits | Signia Sovereign Fund | |
|---|---|---|---|
| AA- Credit Rating |  |  | The fund will always carry an average credit rating of between AA- to AAA. That rating is higher than the majority of UK high-street banks. |
| Inflation Protection | | | Persistently low cash rates on deposit accounts mean an investor’s capital is likely to be eroded by inflation, whereas the Signia Sovereign Fund targets a return of 2% above cash. |
| Diversified Risk | | | Risk is diversified across a number of different governments, countries and underlying securities as opposed to the concentrated counter-party risk of an individual bank. |
| Liquidity | | | The product is highly liquid; you are able to withdraw your funds. Many deposit accounts are fixed for 90 - 120 days. |
| Ring-fenced Securities | | | Cash deposits are vulnerable to a bank’s balance sheet risk, whereas money in the Signia Sovereign Fund is ring-fenced. |
