Axion Global Asset Management (AGAM), a subsidiary of Edvance International Holdings, is set to launch the Smart Beta Fund SP after receiving approval from the Securities and Futures Commission (SFC) in Hong Kong to manage portfolios that invest up to 100% in virtual assets, according to a statement by the firm.
The fund aims to provide superior risk-adjusted returns by tracking the Axion Global Smart Beta Liquidity Index. The index is comprised of the ten most highly valued qualified cryptocurrencies weighted by proprietary investment factors.
Axion plans to reach $100m in AUM for this fund, which will be available to “professional investors” (with HK$8m – $1.03m of investable assets) only.
Last May, Hong Kong’s regulators banned cryptocurrency trading by retail investors and insisted that all virtual asset exchanges should be licensed.
‘We saw the opportunity to create the Smart Beta Fund that will inspire confidence and win the trust of professional investors by combining crypto investment expertise with high governance and operational standards.’ said Mr. Scottie Siu, investment director of AGAM.
The firm will work with custodians and trading platforms such as BitGo Trust, Coinbase and OSL, legal advisors Baker McKenzie and Mourant Ozannes, and virtual assets fund administrator Ascent Fund Services to operate the fund.
AGAM was also supported by law firm Sidley Austin during the approval process with the SFC.
The launch of the Smart Beta Fund follows the recent inception of the Axion Global Innovations Fund that invests in early-stage digital asset ventures in the blockchain and digital assets ecosystem. AGAM expects to roll out more products in the future with different strategies.
AGAM develops investment products focusing on digital assets and blockchain opportunities, and holds a license approved by the SFC to engage in Type 1 (dealing in securities), Type 4 (advising on securities) and Type 9 (asset management) regulated activities.
