DigitalX Ltd continues to diversify its offering and expertise by opening a new funds under management division, DigitalX Investments, to give investors access to a portfolio of cryptocurrencies.
DigitalX’s first fund, DigitalX Investments, will invest predominantly in the leading cryptocurrencies, with a smaller allocation towards special trading opportunities including ICOs.
“We believe cryptocurrencies are under-researched by mainstream asset managers and there is an opportunity to leverage our expertise in Blockchain technology and crypto-asset investment to create value for our clients,” said DigitalX Managing Director Leigh Travers.
DigitalX will hold a 73% interest in DigitalX Funds Management Pty Ltd, which will be the Investment Advisor, and will seed the fund with approximately $750,000 from the Company’s existing Bitcoin and Ethereum asset base.
The wholesale fund is licensed and administered by Boutique Capital Pty Ltd, an authorised representative of Grange Capital Partners Limited (AFSL 264772) and will be open to qualifying investors in accordance with the requirements of Sections 71G and 761GA of the Corporations Act 2001 (Cth). Having undertaken a due diligence review of Boutique Capital, the Company is satisfied that Boutique Capital has the skills to perform the role. Boutique Capital will be paid a management fee of 2% per annum of the net asset value of the fund and will be entitled to receive a performance fee upon the achievement of certain performance criteria for the fund.
Tim Davies has been appointed Head of DigitalX Investments and Portfolio Manager of the Fund.
Mr Davies was previously a Portfolio Manager with Ellerston Capital, which was one of the first Australian funds to enter the emerging Chinese listed market in 2003.
Whilst at Ellerston, he was responsible for building a local research team of 20 investment analysts in Shanghai, China. He was also the Chief Investment Officer for the Caledonia Asia Fund from 2010-2012.
Prior to that, Mr Davies was an Associate Director of Goldman Sachs from 1998-2001. In addition to running DigitalX Investments, Mr Davies will also operate DigitalX’s Treasury operations.
The development of the funds under management division expands DigitalX’s revenue streams, as it is expected to generate fees received by the Investment Advisor, DigitalX Funds Management Pty Ltd, and also utilises assets that are currently underutilised within the Company.
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