Darwinex Private Label, A Primer

29 October 2019
The Market Owl

At Darwinex we’re working on a new product. A product DARWIN managers are asking for. One that amplifies our current offering. A turnkey asset managent franchise to distribute a strategy at a new level. Here’s a primer of what we’re working on.


Goal

We want the best managers at the DARWIN Exchange to centralise their trading with Darwinex. Currently, there are several elements impeding this. One factor is that the Exchange has to compete with others,  which discourages managers from selling their strategy, as well as complicating the on-boarding of new investors interested in a specific strategy. Support material which could be used in a one-to-one meeting with professional investors, such as the presentation of the manager’s profile, is lacking as well.


Darwinex Private Label, A Primer

We use “Private Label” to refer to a proof of concept with which we aim to achieve the following.

  • Give managers flexibility: so they can personalise the risk manager, with a risk level of their choosing, as well as customise the amount charged to investors.
  • Get access to a new type of investor: professionals in search for uncorrelated alpha, allocators, accounts starting at 500k.
  • Test a new distribution model for strategies: offline sales by the DARWIN manager team (if a regulatory license is available in the team), Darwinex but also professional agents.
  • Test a change in the Darwinex business model: away from brokerage, into management.

It’s worth noting that the Private Label will not substitute the exchange model but will amplify it. It complements our current offering to independent managers.

  1. Enjoy excellent execution
  2. Learn to manage investor capital through DarwinIA allocations
  3. Fight for investor capital in the “jungle” of thousands of DARWINs
  4. When the right time comes, create your brand and start selling your strategy to professional investors with the help of Darwinex and professional agents

What’s the current state of this

  • In September we met with the managers who have the most AuM on the DARWIN Exchange.
  • We bought on new, powerful shareholders to help us on our way on the global professional investment scenario.
  • We’re working on the prototypes to satisfy commercial and management requirements of the new product.
  • We’re evaluating the use of different additional services (auditors, certificates).
  • We’ll make our first appearance with the “Private Label” at The Quant Conference on November 1st, 2019 in London.

November 1st is ’round the corner… so soon there’ll be more news on this!