Balmoral Digital launches digital fund with experienced stalwarts at helm
Balmoral Digital has today announced the launch of its new digital assets fund. The fund will be available for wholesale and sophisticated investors seeking an alternative opportunity as the hunt for risk-adjusted returns and yield intensifies.
Balmoral Digital uses a blend of tested and experienced fund management expertise with highly responsive and deep sector knowledge of digital asset opportunities. Offering the expertise of two highly credentialed Australians, with a combined experience of over 30 years within financial services.
Co-Founders and portfolio managers for Balmoral Digital, Angus Crennan and Jesse Smythe have a clear understanding of fiduciary obligations with a demonstrated history of managing assets and offering brokerage services to clients.
Crennan says, “We consider ourselves partners pioneering the journey to new wealth creation for our clients. We understand the uncertainty for investors as we enter year three of the pandemic and have identified an investment opportunity that is an attractive proposition even within a volatile market.
“Traditional income generation vehicles like term deposits or bond yields have become strained due to central bank activism. While the return on investment from global shares remain positive investors are being asked to accept modest earning yields of 3-4% at the risk of double digital losses, hardly the asymmetry investors usually seek. Motivating factors for investors to consider alternative opportunities include portfolio diversification, real returns and attractive levels of income.
“As a rapidly growing and differentiated asset class, digital investments are becoming an increasingly fundamental component of the financial ecosystems of tomorrow.”
Crennan continues, “We employ delta neutral strategies whereby we seek the best returns with minimal directional risk. As rational investors seeking the best returns for our risk, we use derivatives and securities lending to optimise outcomes for our clients. We are investing in the future and see digital assets as the next decade’s single most attractive opportunity in the investment space. Digital assets are being adopted at a rate confirmed as the fastest of any technology in human history (113% per annum), even if cryptocurrency uptake slows over the next five years to levels recorded by its closest competitor – the Internet, at 64% P.A. – the asset class will boast a billion users by 2026.”
The two founders began the Balmoral journey through military connections and apply the same precision and decisive action to the fund’s investment strategy.
Smythe explains, “The rise of digital assets is undeniable and represents an incredible opportunity. 30% of the global population do not have access to a bank account, yet most have phones. Which means people now have access to a financial system that previously they were prohibited from.
“We expect exponential growth in digital assets in the short to medium term. We also expect the continued explosion in adoption and network effects will generate a tailwind to positive performance for years to come.
“Investing in the digital space offers a significant strategic advantage for our clients and we are committed to delivering positive outcomes.”
Balmoral Digital has one of only 11 Australian Financial Services Licenses authorised to provide advice to APRA regulated Responsible Superannuation Entities and Retirement Savings Accounts[ii]. ASIC approved these authorisations given the organisational competence and expertise with regulated institutional portfolios Balmoral brings to the benefit of its clients. The fund is owned and operated within Australia and is not a feeder to offshore funds.
