Mintos has announced it is now offering retail investors access to a BlackRock money market fund as an addition to the loans, bonds, ETFs, and real estate already available on the multi-asset platform.
The launch of Mintos Smart Cash in Latvia provides investors with a stable and low-volatility opportunity to place their money
in the BlackRock ICS Euro Liquidity Fund, a highly-rated money market fund managed by BlackRock.
The pooled funds are invested in top-rated, short-term securities such as bank deposits and government securities, historically associated with stable returns.
“Blend of security, flexibility, and return potential”
Martins Sulte, CEO and Co-Founder of Mintos, said: “Mintos Smart Cash offers an attractive blend of security, flexibility, and return potential, providing our investors with a valuable opportunity to diversify their portfolios and manage their cash. We’re pleased to introduce a BlackRock-managed fund, making it more accessible to retail investors using our platform.”
The offering has an entry point of €1 and offers an efficient and accessible way to manage money for all levels of investors. It is an option that could be used as an alternative to or alongside traditional bank deposits, with the potential to earn returns of up to 3.25% annually, paid monthly.
Smart Cash provides the convenience of same-day liquidity, while offering current market interest rates. Unlike traditional bank deposits, Smart Cash ensures flexibility, allowing same-day access to funds without lock-in periods, withdrawal limitations, or penalties associated with term deposits. Moving cash in and out of Mintos Smart Cash is seamless, requiring just one click.
Money Market Funds don’t offer protection of up to €100,000
Although the money market fund is recognized by the three major rating agencies: S&P, Moody’s, and Fitch, these three agencies also backed mortgage-backed securities (MBS) with high ratings just before the subprime crisis.
Moreover, Money Market Funds are not protected by Deposit Guarantee Schemes up to €100,000 like bank deposits in the European Union. This means that if the MMF fails, investors will lose their hard-earned capital.
The Mintos announcement clarified that by stating: “A Money Market Fund (MMF) is not a guaranteed investment vehicle. An investment in MMFs is different from an investment in deposits; the principal invested in an MMF is capable of fluctuation and the risk of loss of the principal is to be borne by the investor. The MMF does not rely on external support for guaranteeing the liquidity of the MMF or stabilizing the NAV per share.”
Latvia is the latest country where Mintos Smart Cash is now available to investors. This offering is also available to investors with tax residencies in Austria, Denmark, Estonia, Finland, France, Germany, Hungary, Iceland, Italy, Lithuania, Luxembourg, Norway, the Netherlands, Sweden, and Switzerland, with the potential for additional countries to be added over time.
