The objective of this Sygnia Enhanced Income Fund is to outperform the returns on cash at a low level of volatility. This will be a multi-asset portfolio with the primary objective of producing a stable income stream and will invests in a wide spread of income-bearing investments in the equity, bond, money market and real estate markets. By bridging the gap between money market and bond funds, investors will gain access to term premium without having to take on interest rate risk. The fund will be multi-management, which is a new development in the income space. The fund will appoint external managers who will be mandated to assist in achieving the objectives of the portfolio. At the same time there will be an internal management of overall risk to ensure diversification limits are always in place. The combination will provide enhanced yield with reduced risk, at lower cost. The fund will be managed with prudential guidelines and maintain a max 10% equity exposure. Derivatives are allowed for efficient portfolio management.
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