A Better DARWIN for more investor profits and provider revenues

25 May 2020
The Market Owl
Photo by Marco Verch (License)

We’ve improved the DARWIN!

The new DARWIN goes live 1 June 2020.

On a like for like basis, new DARWINs pay providers more revenues by producing more uncorrelated investor profits with lower target risk. New DARWINs are the first step in a ladder that will gradually engage professional managers and investors… stay tuned.

Meanwhile, here’s the summary of what new DARWIN entails for:

  • Investors:
    • Lower Risk – new DARWINs are as risky as an Equity Index – 35% less risky than to date, to help investors overcome loss aversion,
    • 60% lower (wholesale) commissions, to grow investor profits, trust and ultimately, AuM,
    • Fees: new DARWINs carry 1.2% management p.a. and 20% success fee,
  • Providers:
    • AuM growth, as explained above,
    • More revenue for every unit of AuM and % performance (60% less Brokerage cost),
    • A new success fee split: investors pay 20%, Darwinex keeps 5% and pays providers 15%

We’ve prepared a website to lay out the Old to New Transition including:

  • Timeline: covering what changes, when,
  • Aggregate impact: comparing old vs new DARWINs (hint, NEW is vastly better),
  • Calculators and Charts for the impact on individual DARWINs,
  • Q&A to clarify any outstanding questions.

Play around at https://coda.io/@darwinex/pivot.

Then come back here and let’s discuss!