The Investment Committee will follow a rigorous multi step investment process following a top-down approach starting with the definition of a Strategic Asset Allocation (SAA).The Investment Committee will assess market conditions on all block-chain markets and determine a Tactical Asset Allocation representing the targeted allocation for all markets and sub strategies.
Strategic Asset Allocation
Strategic Asset Allocation (SAA)
The Fund establishes a strategic asset allocation which defines the long term risk/return profile expected to be achieved. This strategic asset allocation is regularly monitored and revalued on a yearly basis. The strategic asset allocation allocates various weightings to the different blockchain markets and optimizes those weights to optimize the portfolio’s risk / return profile.
Tactical Asset Allocation
Tactical asset allocation amongst sub-strategies and markets (TAA)
Tactical Asset Allocation represents tactical deviations under or above the strategic asset allocation. A tactical underweighting is implemented by the Investment Committee when market conditions are adverse.This underweighting will reduce the impact of market drawdowns by increasing cash and reducing the exposure to risky assets in such periods.Trend following indicators are used to trigger exit signals. They are used as objective indicators to implement a systematic reduction in risk when market conditions are no longer positive.
Fund Picking is at the heart of the Investment Team added value. A selection of eligible investments is based on an initial filtering of the blockchain investment universe. Parameters used are both qualitative and quantitative. Then the team proceeds with a due-diligence to assess the merits and risks of the potential investment and a rating is produced. A funds monitoring is performed on an ongoing basis.
Investment Committee reviews the TAA report and approves all investments as well as the portfolio asset allocation. The portfolio asset allocation is valid till the investment committee gathers again.
Portfolio rebalancing (review Strategic Asset Allocation)
The Investment Committee reviews at least once a year the Strategic Asset Allocation, with the objective to rebalance the benchmark when needed and / or introduce potential new additions in terms of market strategies or investment opportunities.
A robust approach to an emerging asset class
Blockchain strategies fund has been created to provide a holistic approach and more
diversified investment to those looking to access the world’s
fastest growing asset class.