Investing in the Signet Baltic Bond Fund: A detailed Overview
The Signet Baltic Bond Fund offers investors exposure to a diversified portfolio of baltic bonds. Management fees are 0.80% per annum,and custodian bank commissions are 0.15% per annum; these costs are already factored into the investment certificate price,meaning no separate,additional fees are charged.
A key benefit of the Fund compared to individual bond purchases is it’s diversification.As of the end of september 2025, the Fund holds 42 different bonds. These include bonds issued by prominent Baltic companies such as Eleving Group and Sun Finance (Latvia-based fintech companies with international reach), Delfingroup (the oldest bond issuer on the Baltic Stock exchange), Civinity (the largest private house manager in the Baltics), and a Latvian coffee company.
Getting Started with the Signet Baltic Bond Fund:
Here’s a step-by-step guide to investing:
- Assess Your Investment Profile: Consider your investment timeframe and risk tolerance. The Fund is assigned a risk class of 2 out of 7, indicating a relatively low risk profile. However,the Fund’s focus on regional bonds carries a higher risk of issuer insolvency.
- Open a Securities Account: A securities account with Signet Bank is required to purchase a fund certificate.
- Review Documentation: Before investing, carefully review the Fund’s basic facts document and the latest monthly report, both available on the bank’s website.
- minimum Investment: The minimum investment amount is 100 EUR.There is no purchase commission.While further investments are permitted, investments of at least 100 EUR are recommended.
- Consider Holding Period: To avoid a 0.50% sales commission and maximize the benefits of compounding, it is indeed advisable to hold fund units for at least one year, with three years being ideal.
While accessible to beginners,consulting a financial advisor is recommended to ensure the Fund aligns with individual financial circumstances.
Understanding the Risks:
despite its classification as a relatively low-risk investment, the Fund is subject to certain risks:
* Interest Rate fluctuations: Rising interest rates can lead to a decrease in bond prices, possibly impacting the Fund’s value in the short term.
* Issuer Creditworthiness: the financial health of the companies issuing the bonds influences coupon payments and bond values. While the Fund diversifies across numerous companies, their individual performance and sector trends can have an impact.
Long-term investors, planning to hold their investments for several years, are better positioned to mitigate these risks.
The Signet Baltic Bond Fund aims to provide stable and predictable returns while supporting the growth of the local economy. Based on past performance (which does not guarantee future results) and its diversified portfolio, the Fund may be a suitable option for investors seeking a potentially safer option to the volatility of stock markets.
