Signet Asset Management Latvia of Signet Bank Group has established the Signet Baltic Bond Fund, described as the first open-ended mutual fund of its kind in the Baltic region, aiming to provide income to investors whilst contributing to regional capital market development, LSM.lv reported on July 17.

The fund offers a starting investment threshold of €100 ($109), providing access to a diversified portfolio of bonds from promising Baltic companies for both experienced and new investors whilst supporting local business expansion.

The fund will invest in debt instruments issued by companies, credit institutions and commercial entities based in or operating from Latvia, Lithuania and Estonia, as well as firms whose bonds are governed by Baltic State regulatory frameworks.

At least 85% of the fund's assets will be invested in Baltic issuer bonds, providing clear regional focus and support for local entrepreneurship. Regular income from bonds will be reinvested to contribute to compound interest effects and provide faster long-term capital growth.

The fund features daily liquidity, allowing investors to buy and sell shares when needed, with a simple, transparent structure making it accessible to a wider range of investors.

Pēteris Stepiņš, Chairman of the Board of Signet Asset Management Latvia, said: "The launch of Signet Baltic Bond Fund is a strategic step that reflects Signet Bank's belief in the potential of the Baltic region and the need to strengthen the local capital market."

He added that the fund serves as "an analogue of the Baltic Bond Market Index" whilst combining stable income with investment in the region's long-term development.

Signet Bank, founded in 1991, is Latvia's leading investment bank and has helped more than 50 Latvian companies raise additional funding of €1bn ($1.09bn) through bond and stock issuances since 2021.

In 2024, the bank's assets under management reached €1.6bn ($1.74bn), establishing it as a leading organiser of corporate bond and stock issuances in Latvia and one of the leading stock brokers in the Baltics.