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Opening DARWINs to a broader investor base
Active Darwinex investors value the transparency and flexibility of the Darwinex Investor platform, for the myriad of personalisation and configuration it offers.
Less active investors have also expressed conditional interest in the DARWIN talent pool… if only it didn’t require actively monitoring or re-balancing portfolios.
We’re launching the Darwinex Index (INDX) to address their buy & hold use case.
How does INDX work?
INDX is a buy & hold investment strategy.
Under the hood, INDX is a DARWIN portfolio/basket made up of underlying DARWINs. Think of it as our Quant team managing a “Fund of DARWINs”, with a view to generating long-term returns with low correlation to the market.
Its composition changes dynamically per a set Darwinian selection logic that:
- Sifts the DARWIN pool systematically for eligible strategies with certain desirable attributes,
- Leverages Darwinex toolkit to detect drifts in their investment style / trading patterns,
- Diversifies - and re-balances - within the eligible pool every month, intervening more frequently on a discretionary basis, if required
Beyond the Darwinian allocation logic, we apply portfolio overlay strategies to hedge investor exposure at times when managers correlate excessively, despite their trading independently from each other.
The open selection process and systematic investment process confer INDX evergreen nature - its component traders will come and go, but INDX lives on.
How has it performed?
We’ve incubated INDX with live company capital for almost 5 years now, since June 2020. INDX has yielded close to 20% p.a. gross since inception, with monthly historical Value at Risk of 6.5%.
Per its Darwinian logic, INDX is a “living” project and our goal is to post similar performance going forward, reducing volatility and correlation to other asset classes.
Can I invest in INDX?
INDX is now live within an institutional wrapper (ISIN CH1403552396) and we’re opening a retail track inside the Darwinex platform with €3MM of capacity - on a first come, first served, basis.
The retail tranche comes with a €10,000 minimum ticket, and is capped to €100,000 per investor, and no leverage is available. Reach out if you wish to invest more - we might be able to accommodate larger amounts via the institutional tranche.
To be clear, we may - or may not - open INDX to more retail investment in the future, but for now this is it, on a first come, first served basis.
How do I invest in INDX?
Almost like you would with any other DARWIN… except that INDX:
- Requires its own dedicated investor portfolio, meaning no other DARWINs can be included in the same portfolio.
- Valuation updates daily, and buy/sell orders are processed at market close (17:00 New York time).
You can place orders at any time, and cancel up to a certain period before market close; after which they are irrevocable. We will process them at the opening price of the following day.
What does INDX cost?
INDX carries the same fees as all other DARWINs:
- 20% performance fee (charged quarterly)
- 1.2% management fee per year
Will Darwinex disclose INDX composition?
No. The only parties outside of Darwinex with insight on INDX composition will be its DARWIN providers, who will notice INDX as a “standard” investor via their DARWIN provider interface.
INDX will open for subscription soon. You can track its performance here and contact our support team for more information.
Thanks for reading us,
The Darwinex Team
Legal Disclaimer:
Your capital is at risk.
Past performance is not reliable of future results.
The content of this article is for informative purposes only and is not to be construed as financial and/or investment advice.