The BLOCKCHAINFUND is designed to provide investors with access to blockchain technology-related companies (via equities), UCITS-enabled cryptocurrencies (via certificates) and non-physical precious metals (via equities, ETFs or structured products).
The blockchain is a distributed ledger technology (DLT) that underlies cryptocurrencies such as bitcoin and platforms such as Ethereum. It provides a way to record and transmit data that is transparent, secure, verifiable, and fail-safe. This technology has the ability to make organizations that use it transparent, democratic, decentralized, efficient and secure. It is highly likely to revolutionize many industries in the coming decade.
More and more industries are catching up with blockchain technology. Their global economic impact is expected to be significant for many sectors. The BLOCKCHAINFUND invests in companies that strive to adopt and develop blockchain technology or its applications, as well as in backers of a blockchain infrastructure. In addition, cryptocurrencies based on blockchain technology and precious metals for opportunistic motives are added to the portfolio as a counter-draft to fiat currencies.
These are some of the industries blockchain is already innovating: Banks and payments, cyber security, supply chain management, forecasting, networks and IoT, insurance, private transportation and ride sharing, cloud storage, charity, elections, Governments, charity, health, energy management, on-line music retailing, real estate and crowd-funding.
The fund is actively managed. Since the blockchainFUND portfolio is divided into three sub-strategies — blockchain technologies, UCITS-enabled cryptocurrencies and non-physical precious metals , different trading approaches are required.
Approaches to sub-strategies:
- Blockchain: Selection of companies based on traditional equity analysis in the manner of a fundamental bottom-up analysis. The trading approach combines aspects of classic shareholder value with advanced quantitative valuation and comparison models.
- Cryptocurrencies: Based purely on technical analysis.
- Precious metals: Fundamental top-down approach in combination with technical analysis.
If available, market sentiment, the rotation of sectors and socioeconomic data will be used for further evaluation.
Allocations of sub-strategies:
- About 60% — Blockchain (equities)
- About 20% — Cryptocurrencies (Certificates)
- Approximately 20% — precious metals (equities, ETFs or structured products)
It is an actively managed fund, so the portfolio manager adjusts the allocation within the limits set out in the prospectus on the basis of his market assessment.
The fund is suitable for investors with a medium- to longterm investment horizon looking for stronger capital growth with higher risk tolerance. All investments involve risks, for example through value and profit fluctuations. In addition, investments in foreign currencies may be subject to currency fluctuations.
The following criteria can be used to identify a company’s relationship with blockchain technology:
- Active actions of the company in connection with blockchain technology with different intentions:
- General effort to further develop blockchain technology in the company, for (subsidiary) companies or governments or to use it in parts of the company
- Global technology disruption (intense monitoring of potential disruption processes through active or passive investments in corporate blockchain technology processes or external private equity or venture capital investments in blockchain technology companies or blockchain technology joint ventures)
- Achieving, securing, safeguarding and expanding any technology advances in, with or through blockchain technology
- Patent applications related to blockchain technology (e.g. Bank of America, IBM, Tencent and others)
- Increased efficiency in document, legal and contracting (smart contracts, etc.)
- Cost savings through process optimization (error avoidance, process step minimization, etc.)
- Better control and monitoring of process sequences (supply chains, transport routes and duration)
- Reasons of security and trust (cloud boom, cybercrime, clinical trials, etc.)
- Infrastructure providers providing the hardware base for using blockchain technology
- Infrastructure providers providing the software base for the use of blockchain technology