Risks
Credit or Counterparty Risk
Deposits in the Spiko EU T-Bills MMF are exposed to the risk of sovereign default on the T-Bills in which the Fund has invested.
Deposits in the Spiko US T-Bills MMF are exposed to the risk of default by the U.S. federal government on its short-term debt obligations.
The Spiko EU T-Bills MMF exclusively invests in Treasury Bills issued by Eurozone Member States that are rated "Investment Grade" by major global rating agencies. None of the countries in which the Fund invests has ever defaulted on its debt, even during major crises like 2008. The likelihood of such a default is lower than that of a major bank.
The Spiko US T-Bills MMF bonds exlusively invests in U.S. T-Bills, which are backed by the full faith and credit of the U.S. federal government.
Low Interest Rate Risk
If central bank interest rates fall to very low or negative levels again, the yield on the Spiko Funds could turn negative.
Such situations are rare and generally predictable. Moreover, if they arise, you can withdraw your funds at any time and transfer them to a checking or current account.
Exchange Rate Risk
Deposits in a Fund not denominated in your reference currency exposes you to exchange rate fluctuations between your currency and that of the Fund. For instance, this would apply if you invest in the USD-denominated Fund while your reference currency is the euro.
We offer our clients both EUR- and USD-denominated Funds. If your reference currency is EUR or USD and you want to avoid exchange rate risk, you can invest in the corresponding Fund to eliminate this risk entirely.