Starlight Smart Reserve
The Demand Deposit Account Alternative
Earn 3.00%* (EUR), 4.50%* (USD)
with 5 day access
About Smart Reserve (EUR)
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No maximum Investment Amount, no fixed term, no exit penalties
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Reflects the European Central Bank (ECB) Deposit Rate and the overnight deposit rate of European Banks (ESTR)
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Directly invest in a select portfolio of AAA and Sovereign Short-Term Money Market Funds (MMFs), professionally curated by the experts at Starlight
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Managed by institutions with over €2 trillion of investor assets under management
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Holding typically more than 200 deposits and short term securities of highly rated banks and Sovereign Governments such as Germany and France
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Streamlined monthly reporting straight to your inbox and 24-hour portfolio access via Client Portal
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Available to Individuals, Companies, self-invested and broker advised pensions (ARFs, PRBs and PRSAs)
Starlight Wealth does not accept or hold client monies. Your Investment Amount is invested directly in the AAA and Sovereign Money Market Funds comprising the relevant Starlight Smart Reserve Portfolio.
Funds and investments in your Starlight Smart Account are ‘client assets’ and are fully segregated from the assets of the MIFID Executing Broker in accordance with Central Bank of Ireland regulatory rules. Please see FAQs for further information.
Open Smart Reserve
To open Smart Reserve you will need:
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€50,000 (Investment Amount minimum)
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To be over 18 and resident and tax resident in Ireland
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Your PPS Number
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Your Passport
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Proof of Address
Timelines
Individuals/Joint: We can have an account open within 48 hours of receiving the required information and documentation.
Company: The process is a little longer but we will guide and support you every step of the way!
01
Diversification - Let's Spread the Eggs!
Starlight Smart Reserve MMFs invest in large portfolios of bank deposits and short-term bond investments. Your cash reserve is typically spread across more than 200 instruments rather than just being held in a deposit account with a single bank. Starlight Smart Reserve removes the 'concentration risk' of a single bank deposit, the risk that you could lose all your money if the bank defaults.
02
Superior Return on Cash - Pricing Power in Your Hands!
As Starlight Smart Reserve MMFs pool your invested cash reserve with up to €20 billion in cash received from global investors, these MMFs are able to get a much higher rate of interest than you can access as a normal bank customer. This higher rate of interest is shared with you.
03
Liquidity - Why tie up your Cash for a Fixed Term?
As Starlight Smart Reserve MMFs are EU regulated Short-Term daily liquid funds, with recommended investment terms of no more than
one week, you don't need to sacrifice liquidity to get a good return on your cash.
What is a Money Market Fund?
Money Market Funds (MMFs) are regulated funds that invest in high-quality, short-term debt instruments, cash, and cash equivalents. They were originally developed in the US in the 1970s. MMFs are widely used by large corporations, individuals, and governments that want to sensibly limit how much exposure they have to their relationship banks, while maintaining liquidity and earning interest.
EU MMFs are regulated in the European Union under the EU Money Market Fund Regulation (MMFR). As of November 2023, Ireland was home to over €700 billion of cash reserves held in Irish MMFs out of an estimated total of €1,600 billion held in MMFs across the EU.
$5,000
billion
The amount of cash reserves held in US MMFs at the end of 2022, just under 25% of all cash reserves in the US banking system
$538
billion
The amount transferred by bank depositors to US MMFs in the weeks following the failure of Silicon Valley Bank
€150
billion
The amount of deposits held in a handful of Irish banks and building societies in 2023
€4.5
billion
The estimated amount of interest foregone by Irish depositors and customers on cash held in Irish banks in 2023
€37
billion
The amount of Irish cash reserves that would be held in MMFs if Ireland mirrored the US banking system
Starlight Smart Reserve Portfolio (EUR)
A curated model portfolio of Short-Term Money Market Funds designed for clients seeking to generate an institutional rate of return on their cash that exceeds prevailing retail bank deposit rates
Projected Return Profile
Model Portfolio Description
The model portfolio comprises a select portfolio of high quality Short-Term EUR Money Market Funds Funds (MMFs), each sponsored and managed by established blue-chip international investment institutions.
Investment Objectives & Portfolio Allocation
The model portfolio is designed to generate an income yield that closely tracks the Euro Short Term Rate (ESTR), the overnight interest rate of Eurozone banks.
Starlight has reviewed c.300 MMFs as part of the selection process.
The model portfolio is 100% allocated to Short-Term Money Market Funds.
*Important Information
All information presented on this page in respect of Starlight Smart Reserve (EUR) is indicative of the model portfolio as of 30th April 2023 (with the exception of the projected yield which is, following the ECB interest rate decrease, presented "gross of fees” as of 23rd October 2024). The projected yield of Starlight Smart Reserve (USD) is, following the FOMC interest rate decrease, presented "gross of fees" as of 7th November 2024.
The projected yield and indicative rating and asset composition of each model portfolio is variable, provided for informational purposes only, and should not be used as the basis for making an investment decision. As funds held in the underlying Money Market Funds are constantly maturing and reinvesting, and overnight bank interest rates rise and fall, actual model portfolio and actual client returns will differ.
Clients’ investments in these model portfolios are made up of whole and fractional holdings of Money Market Funds. By investing, clients own the individual whole and fractional shares of the Money Market Funds comprising the relevant model portfolio.
The Starlight Smart Reserve (EUR) and Starlight Smart Reserve (USD) model portfolios are proprietary and have been exclusively developed and constructed by Starlight Wealth.
Warning: If you invest in this product you may lose some or all of the money you invest. Past Performance is not a reliable guide to future performance. The value of your investment may go down as well as up. This product may be affected by changes in currency exchange rates.