Investment strategy

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.

Investment approach

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.

Investment profile

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 risks are descri­bed in detail in the pro­s­pec­tus . Additional infor­ma­ti­on is available in the Publications sec­tion.

The fol­lo­wing cri­te­ria can be used to iden­ti­fy a company’s rela­ti­onship with block­chain technology: 

  1. 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.) 
  2. Infrastructure pro­vi­ders pro­vi­ding the hard­ware base for using block­chain technology 
  3. Infrastructure pro­vi­ders pro­vi­ding the soft­ware base for the use of block­chain technology
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