What Are the Risks of Investing My Cash Through My Fygr Account?

Funds invested in the Euro fund depend on the ability of the most financially stable eurozone countries to repay their short-term debt.
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Similarly, funds invested in the Dollar fund rely on the financial strength of the United States federal government to honour its short-term obligations.

For the euro, the manager of our Euro fund invests exclusively in the debt of the highest-rated countries, as assessed by major credit rating agencies — such as France and Germany. None of these countries have ever defaulted, even during major crises such as the 2008 financial crisis. The risk of default is therefore significantly lower than that of a bank failure.
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For the dollar, the manager of our Dollar fund places assets in US Treasury bills, guaranteed by the United States government. Since 1971 (the end of the gold standard system), the United States has always honoured its debt obligations, even during periods of crisis.

Should central banks significantly reduce their interest rates — or even set them at negative levels — the returns generated by the funds could also turn negative.
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Such rate cuts are generally rare and foreseeable. Should they occur, you are able to withdraw your funds at any time and transfer them to a current account.

If you invest in a fund denominated in a currency other than your own, fluctuations in exchange rates may impact the value of your investment. For example, if you invest euros in a dollar-denominated fund, EUR/USD movements could influence your gains or losses.
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We offer two separate funds: one in EUR and one in USD. If your primary currency is one of these two and you wish to avoid currency risk, simply select the corresponding fund. This entirely eliminates your exposure to exchange rate fluctuations.
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