Dear Clients and Partners,
In this update, we won’t be discussing markets like we normally do. Instead, we’ll spend some time on what we have been working on for the solution side of the business. After having launched our strategy for professional investors in a securitized format via a certificate last year, we are now close to launching our regulated fund structure. Below I will highlight some key features of the fund structure:
- Early Investor Share Class: With the fund, we are able to create multiple share classes with varying minimum investments and fee structures. For those in the initial group of professional investors investing a min. of USD 100’000, they will benefit from strongly reduced fees of a 0.5% management fee p.a. and 5% performance fee p.a. based on a high-water mark (meaning the fee is only paid if your assets are increased). Once you have “punched” your ticket as an early investor, you will lock in these benefits, also for later follow-up investments. All share classes will have monthly liquidity.
- Partners: Understanding full well that safety and an institutional grade setup is key, especially in this digital asset space, we have partnered with the Bank Julius Baer as custodian and Deloitte as auditor, collaborating with two long-standing and reputable firms.
- Fund Structure: The fund will be licensed as a Professional Investor Fund (SICAV) in Malta, regulated by the Malta Financial Services Authority (MFSA). It will be administered by Fexserv, a leading Maltese provider with whom we have been working together for over 10 years and were the first ones working with funds having exposure to digital assets in Malta. In Malta, we are working with a jurisdiction and service provider with highly skilled and experienced staff who also offer an optimal cost/benefit ratio for us and our investors. What some of you might not know is that Malta, like Switzerland, has taken a positive and constructive approach towards the digital asset space, which was an important factor for us. Since 2018 Malta has been at the forefront in the space with the first step being the publishing of specific requirements for regulated funds investing in digital assets in February 2018. This allows us to operate in jurisdictions, as investment manager and fund company, where we enjoy regulatory clarity and guidelines and don’t need to operate under ambivalent conditions.
- US Investors: Many of you have been waiting for this and we will now be able to welcome qualifying US investors in this structure.
- Investment Management: This will stay the same with BFI Consulting as investment manager and Marc P. Bernegger, Frank R. Suess, Dirk Steinhoff and myself on the investment committee.
We expect the regulator’s final approval to be imminent, our ISINs are already reserved, and everyone is ready to go. As soon as this is done, we will inform you accordingly.
Have a great day and feel free to let us know if you have any questions.
Marc, and your AltAlpha Digital Team