Parmenion Sterling
Built from very low risk, highly liquid assets, our Sterling solution is designed for low capacity for loss investing.
- The content of this page is only suitable regulated financial advisers.
- Past performance isn't an indicator of future returns and investors could get back less than they put in.
- This content of this page is intended as general information and shouldn't be viewed as a personal recommendation.
- There's also no guarantee that investment solution or funds will meet their objectives.
Lower risk, higher liquidity
When your investment strategy needs an allocation to very low risk, highly liquid assets, Sterling is a solution to consider.
Lower in risk than all Parmenion’s Risk Grade 1 portfolios, Sterling is an alternative to any lower risk portfolio which might include bond funds. Bonds funds will have greater sensitivity to interest rate changes and therefore exhibit greater capital volatility than the shorter dated, money market investments allowed within this solution. It also contains no equities or other higher risk asset classes.
Sterling might be appropriate for:
Someone with a cautious attitude to risk, has a very short investment time horizon, or who is uncertain when to commit to investing.
Someone in retirement who wants to hold 6 months’ income immune to the risks of the equity market.
Any investor wanting a risk buffer or an emergency fund.
A low risk, high liquidity, on platform solution
01A low risk, high liquidity, on platform solution
A practical choice for those with a near-term need for their money, low risk tolerance or wanting to hold a reserve of liquid assets.
Sterling is an alternative to a low-risk investment portfolio containing bond funds and alternatives. This gives it a lower risk profile than any of our risk grade 1 portfolios. Bond funds for example are sensitive to interest rate changes so they’re more volatile than the shorter dated, money market investments in the Sterling solution. It also avoids equities and other higher risk asset classes.
AAA rated funds
02AAA rated funds
Sterling consists of two money market funds, both AAA rated by Fitch. We hold a liquidity buffer of 1% of the total holdings for fees and costs.
As with any investment, the more return you want, the more risk you need to take. Our focus with Sterling is to make sure that the funds we invest in are extremely liquid, so we take less risk.
The funds currently used within the solution follow the regulatory framework for a Low Volatility Net Asset Value (LVNAV). This means that Net Asset Value should go up in all but the most extreme circumstances. So, whilst there’s never a guarantee, your clients can have greater confidence that they’ll get their investment back.
Supports different planning scenarios
03Supports different planning scenarios
The low risk, high liquidity nature of Sterling means it can be a good option for several financial planning scenarios including:
- Multi-pot investing - Sterling can form part of a pot-based strategy in which capital is allocated between pots with different levels of investment risk.
- Phasing - as a low risk, high liquidity, on platform solution, it's a good potential fit for phasing money into the market to take advantage of pound cost averaging
- Short term plans - provides straightforward access to funds for short term plans.
| Type | Charge |
|---|---|
| Annual investment charge (charged within underlying funds): | 0.10% p.a. |
| Discretionary management fee: | 0.05% p.a. (taken monthly) |
| Custody charge (for all assets in Sterling): | 0.20% p.a. (taken monthly) |
| No dealing charges. |
Sterling offers the opportunity to hold capital at low risk, with an appropriate return, ready for your next move.
Tim Willis
Investment Director
Solution resources
