Signia Invest Sovereign Portfolio

The Signia Managed Cash Alternative Solution

A diversified portfolio of high quality fixed income securities designed to provide a solution for cash

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

Targeted return of 2% above cash*

Targeting an annualised return in excess of 2% above cash*.

Minimum portfolio credit rating: AA-

A diversified portfolio of high quality fixed income securities. The portfolio will always carry an average credit rating of between AA- to AAA.

Access to your funds

Liquidity with no lock up periods otherwise associated with fixed-term deposits and fiduciary deposits.

Hedged currency risk

The strategy hedges all foreign currency risk to minimise volatility.

*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 Portfolio

Strategy and Holdings

The strategy invests only in high quality investment grade sovereign and supranational bonds.

The portfolio 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
FeaturesCash
Deposits
Signia’s Cash
Alternative Solution
 
AA- Credit Ratingcross redgreen tickThe portfolio 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 Protectioncross redgreen tickPersistently low cash rates on deposit accounts mean an investor’s capital is likely to be eroded by inflation, whereas the Signia Cash Alternative targets a return of 2% above cash.
Diversified Riskcross redgreen tickRisk is diversified across a number of different governments, countries and underlying securities as opposed to the concentrated counter-party risk of an individual bank.
Liquiditycross redgreen tickThe product is highly liquid; you are able to withdraw your funds. Many deposit accounts are fixed for 90 - 120 days.
Ring-fenced Portfolio Securitiescross redgreen tickCash deposits are vulnerable to a bank’s balance sheet risk, whereas money in Signia’s portfolio is ring-fenced.

Signia Invest Sovereign Portfolio  – an alternative to cash

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

Real Rate of Return on Cash1 - 31 December 2000 to 31 December 2020

*Real cash rate represents the nominal rate of cash less the cost of inflation (CPI) in each relevant currency. Source: Bloomberg; Signia Wealth. Past performance is not a reliable indicator for future returns

Over the past 20 years the average rate of return of cash has been near zero across all major currencies.

Dec 2000 – Dec 2020

US

UK

EUR

Average real rate of return

-0.29% 0.30% -0.21%
  • Real cash rates are likely to remain low or negative for the foreseeable future as a consequence of the economic cycle’s financial depression for savers
  • The rate hiking cycle in the US was slower and longer than usual, and has now ended
  • Positive inflation levels have continued to add pressure on real cash rates

Invest in the Sovereign strategy now

  • Ready made portfolios to match your appetite to risk
  • Managed by our awarding winning team

Signia Cash Alternatives Track Record

The graph highlights the potential gap between deposit account returns and those targeted by the Signia Sovereign Portfolio.

The strategy’s track record demonstrates its ability to generate attractive risk-adjusted returns above cash*.

“We invest directly in the global marketplace to find the best possible opportunities. We employ a robust and repeatable methodology in order to generate consistent risk-adjusted returns again and again for our clients”

Greg Malone

We invest directly in the global marketplace to find the best possible opportunities. We employ a robust and repeatable methodology in order to generate consistent risk-adjusted returns again and again for our clients

Greg Malone

Signia Cash Alternatives Track Record

SONIA is the Sterling Overnight Index Average and represents the risk-free interest rate for sterling cash markets, published by the Bank of England Strategy Inception: 31/07/2015. Past performance is not a reliable indicator for future returns. Source: Signia, Bloomberg, Bank of England. Data as at 30/09/2020.