On 1 Aug 2019, SOPR switches to a passive investment strategy, while maintaining a similar portfolio structure and its loyalty as a cost-friendly product.
Solidum Prime (SOPR) is the world’s first equal weight crypto fund and one of the first on the ICONOMI platform. It is an easy, fast, and secure way to enter the crypto world or to diversify your existing crypto portfolio. Equal exposure to all assets reduces concentration risk, provides stability, and results in a more balanced and diversified portfolio. The long-term outperformance of equal weight investment strategies has been historically confirmed in all major global stock markets.
A switch in the asset selection process from active to passive
We have developed a rigorous three-step investment process in which each potential asset is thoroughly analyzed by conducting an extensive evaluation of the project and its team. Once the assets for the portfolio are selected, we have to continuously monitor them. A high-quality, ongoing analysis takes a lot of time and human resources, therefore, we were left with two options: to increase the management fee or to opt for a less time-consuming asset selection process.
We established SOPR with a mission to provide a simple and accessible crypto investment solution, and increasing the fees would be contradictory to this mission. Instead, we decided to rather change the asset selection process from active to passive. The passive asset selection process means that the manager establishes certain rules which are then strictly followed.
The updated SOPR investment strategy
The portfolio will consist of 25 largest assets by market capitalization, supported on the ICONOMI platform.
The portfolio will still utilize the equal weight investment strategy, assigning each cryptocurrency in the portfolio an equal share of 4%.
The portfolio will be rebalanced on a monthly basis, every first Monday of the month.
We will implement the updated investment strategy on 1 August 2019.
The equal weight investment strategy remains the core attribute of Solidum Prime.
How will this affect the SOPR portfolio structure? The majority of the portfolio will actually remain the same. Here is a comparison of both portfolio structures for a better understanding:
We believe that this modification of the Solidum Prime investment strategy will not have any significant effect on the performance of the portfolio while ensuring the preservation of the cost-friendly structure for our investors.
Furthermore, ICONOMI has recently announced that managers will soon be able to launch crypto funds with the performance fee. We plan to launch a new crypto fund with active portfolio management and advanced hedging strategy once the new feature is implemented. Follow us for more updates on this topic.
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