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SERVICES · THE DIGITAL ECONOMY, STRUCTURED

Digital Funds

Digital funds give investors exposure to digital assets and the companies building the digital economy through a formal fund structure. Glenmorgan researches these funds and sets out their structure, holdings, custody, costs and risks clearly.

Open an Account Register interest in Digital Funds

01 / OVERVIEW

Digital Funds
overview.

Digital funds are pooled investment vehicles that give investors exposure to digital assets and to the companies, networks and infrastructure that make up the digital economy. Rather than buying and storing individual digital assets themselves, investors hold an interest in a professionally structured fund.

Glenmorgan Investments Limited researches digital fund opportunities and presents them with the same discipline applied to traditional markets: a clear account of what the fund holds, how it is structured, how it is valued and what the risks are.

Digital assets are a young and fast-changing asset class. Prices can move sharply, rules differ between countries and are still developing, and investors can lose some or all of the money they invest.

02 / INVESTMENT APPROACH

How we look at
digital funds.

Each opportunity is considered against the same set of questions before it is presented to investors.

01

Structure

Where the fund is set up, who manages it, who holds the assets and what legal protections apply to investors.

02

Holdings

What the fund actually invests in, how concentrated it is and how those holdings are selected and reviewed.

03

Custody

How digital assets are stored and secured, and whether an independent custodian is used.

04

Valuation

How and how often the fund is valued, and which pricing sources are relied upon.

05

Costs

Management, performance, custody and transaction charges, and how they affect what investors receive.

03 / FUND STRATEGIES

Common
fund strategies.

Digital funds vary widely. The strategies below describe common types in general terms; they are not a list of specific products.

  • Broad market funds spreading exposure across a range of established digital assets
  • Single-asset funds that track one digital asset through a regulated structure
  • Digital infrastructure funds investing in companies that build and operate blockchain networks, data centres and payment technology
  • Tokenised funds, where interests in traditional assets such as bonds or property are recorded on a blockchain
  • Actively managed funds that adjust holdings according to the manager's research and market view

04 / DIGITAL ASSET EXPOSURE

Direct and
indirect exposure.

Direct exposure means the fund owns digital assets themselves, so its value moves closely with those assets. Indirect exposure means the fund owns shares in listed or private companies whose businesses depend on digital technology.

Indirect exposure can behave differently from digital asset prices, but it brings ordinary company risks as well. Many investors consider a mix, and the balance should reflect objectives and tolerance for volatility.

05 / PORTFOLIO CONSTRUCTION

Where digital funds
may fit.

Because digital assets can be highly volatile, they are generally treated as a smaller, higher-risk part of a diversified portfolio rather than as a core holding.

Considering position size, how the holding interacts with the rest of the portfolio and how often it is reviewed is as important as choosing the fund itself.

06 / RISK MANAGEMENT

Understanding
the risks.

  • Market risk — prices of digital assets can rise or fall sharply in short periods
  • Regulatory risk — laws and tax treatment are developing and may change
  • Custody and security risk — digital assets can be exposed to theft, hacking or operational failure
  • Counterparty risk — reliance on exchanges, custodians and service providers
  • Technology risk — software errors or network failures can affect asset values
  • Investor protection — compensation schemes may not cover digital asset investments

07 / LIQUIDITY

Liquidity
considerations.

Some digital funds allow investors to buy and sell regularly; others only allow withdrawals at set dates, require notice, or can suspend withdrawals in difficult markets. Underlying digital assets may also be harder to sell in stressed conditions.

Investors should only commit money they will not need for the life of the investment, and should read the dealing terms in full.

08 / ELIGIBILITY

Investor
eligibility.

Some opportunities are available only to investors who qualify as professional, high-net-worth or sophisticated investors under the rules that apply in their country. Eligibility is confirmed before any investment can proceed.

In some countries the promotion of digital asset products to the general public is restricted. Information on this website is not an offer to any person in a place where it would be unlawful.

09 / THE PROCESS

How the process
works.

01

Enquire

Register your interest or contact Glenmorgan with a brief outline of your objectives.

02

Eligibility

We confirm whether you qualify for the type of opportunity you are interested in.

03

Information

You receive the fund documents, including terms, costs and risk disclosures.

04

Review

Take time to read the documents and, where appropriate, seek independent advice.

05

Decision

If you decide to proceed, the application is completed with the fund's administrator.

AT A GLANCE

01

Fund structure

Who manages the fund, where it is set up and how investors' interests are protected.

02

Digital asset exposure

Direct holdings of digital assets, or indirect exposure through technology companies.

03

Custody & security

How assets are stored, secured and independently held.

04

Liquidity terms

When and how investors can enter or leave the fund.

FREQUENTLY ASKED QUESTIONS

Digital Funds
questions.

What is a digital fund?

A pooled investment that gives exposure to digital assets or to companies in the digital economy, managed within a formal fund structure.

Do I own the digital assets directly?

No. You hold an interest in the fund, and the fund holds the assets or company shares on behalf of all its investors.

Are returns guaranteed?

No. Digital funds are high-risk and you could lose some or all of your investment.

Can I withdraw at any time?

That depends on the fund. Some deal regularly, others restrict withdrawals to set dates or can suspend them. Check the dealing terms.

Who can invest?

Eligibility depends on the fund and on the rules in your country. Some funds are available only to professional or sophisticated investors.

How do I find out more?

Register your interest through the contact page and Glenmorgan will be in touch with relevant information.

FURTHER READING

From Glenmorgan
Insights.

ImportantInformation on this website is general in nature and does not take into account your objectives, financial situation or needs. Investments carry risk, including the possible loss of capital. Past performance is not a reliable indicator of future performance. Consider seeking independent professional advice before making an investment decision. Legal & Company Information Key considerations: Digital assets are highly volatile; Regulation is still developing; You could lose all of your investment.

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YOUR NEXT STEP

Let’s talk about
your objectives.

Open an Account Register your interest

Or call us on +44 (0) 204 577 2968