DARWIN VTJ paused for new investment

7 February 2018
The Market Owl

Due to the divergence caused by the sheer increase in the volume of investors in the DARWIN VTJ- more than € 2MM under management! -, its DARWIN provider has requested us to close it temporarily.

This means that the DARWIN will remain closed for new investments and current investors in VTJ will only be able to sell it.

For your information, we are currently working on a “Capacity Management” tool which will allow DARWIN providers to pause their DARWIN if they meet the following criteria:

  • 1-The max AuM cap established by the DARWIN provider is surpassed. The minimum will be determined by Darwinex.
  • 2-The divergence % in the DARWIN goes beyond the threshold established by the DARWIN provider. At this point, the DARWIN will be automatically paused. Irrespective of the min divergence % required by the DARWIN provider, Darwinex will automatically pause the DARWIN if it goes beyong  1%-1.5% (we’re still defining the optimal %)

This tool will allow Investors to:

  • 1-Know the parameters chosen by the DARWIN provider in advance.
  • 2-Activate a notification mechanism that will alert them when a trader changes any of the parameters defined beforehand or the DARWIN is paused/reopened again.

In the absence of such tool, the procedure hereinafter will be similar to the one applied for VTJ: the DARWIN provider notifies Darwinex of its intention to pause its DARWIN and we will comply with its will, with the limitations above-mentioned.

IMPORTANT: from now on, in case a DARWIN provider decides to pause it before the launch of the “Capacity Manegement” tool , Darwinex will not send any kind of notification to its clients.

Should you want to share your views on this topic, you are more than welcome to participate in this Community thread.