Vestinwolf to “tokenize” feeder fund on Hedera Hashgraph DLT.
May 28, 2021
UK based hedge fund manager Vestinwolf Alternatives Limited (VAL) has confirmed tokenization of its feeder fund.
With nearly a billion dollars worth AUM spread across multiple strategic funds, Vestinwolf’s flagship Global Opportunities Fund was ranked as the Top Performing Hedge Fund for 2020–21 by Morgan Hedge.
Source: Morgan Hedge
Vestinwolf’s feeder fund has been partly tokenized using the enterprise grade — Hedera Hashgraph’s DLT. The Asset Manager’s sister concern Vestinwolf Financial Services Limited (VFSL) has already launched a Hashgraph based Tokenization platform RDX.
Vestinwolf has leveraged it’s expertise in Investment Banking & Financial Derivatives and introduced tokens on lines of Structured Investment Products and Synthetic Derivatives — issuing Fund-linked Structured Tokens (FSTs) which are similar to Fund-linked Notes offered by Investment Banks.
Token Overview:
Fund-linked Structured Token - FST
Asset Promoter: Vestinwolf Alternatives Limited (UK)
Company Number: 13345559
Nature of Business: Fund Management Activities
SIC: 66300
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Name of Master Fund: Vestinwolf Global Opportunities Fund
Name of fund: Vestinwolf Decentralized Feeder Fund
Structure: Master - Feeder Fund
Base Currency: GBP
Annual Management Fee: 1%
Performance Fee: 30%
Hurdle Rate: 6%
Fund Strategy: Regulation D
Auditor: CSB & Co. Certified Public Accountants
Custodian: Trident Trust
Administrator: BNP Paribas Securities Services
Prime Broker: Credit Suisse Prime Fund Services
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General Terms of the Fund-linked Structured Tokens:
- Payment at Maturity: If you hold your Tokens to maturity, for each Token, you may receive a payment, which may or may not include the return of all or any portion of your initial investment, as specified in the applicable Pricing Supplement, subject to the credit risk of the Issuer and the Guarantor.
- Coupon and Coupon Payments: Unless otherwise specified in the applicable Pricing Supplement, the Tokens will not include any coupon payments. The applicable Pricing Supplement may specify whether the Tokens pay a coupon based on: (i) movements in the price or value of or other events relating to one or more Reference Shares, (ii) a fixed amount or rate, or (iii) a floating amount or rate.
- Maturity Date: 31 March 2024
- Denominations: The Tokens will be issued in denominations of $100 (or the specified fiat/digital-currency equivalent), and multiples of $100 (or the specified digital-currency equivalent) thereafter.
- Currency: Unless otherwise specified, the Tokens will be denominated in U.S. dollars.
- Minimum Investment Amount and
- Minimum Holding: The Tokens will be subject to the minimum investment amount of $100 and minimum holding requirement of one year.
- Program: We intend to issue from time to time tokenized certificates, warrants or notes including the Tokens described herein, having an aggregate notional amount of up to $5,000,000.00
THE FUND-LINKED STRUCTURED TOKEN IS A DECENTRALIZED SYNTHETIC DIGITAL DERIVATIVE INSTRUMENT —
None of the Securities and Exchange Commission (the “SEC”), any state securities commission or regulatory authority or any other United States, French or other regulatory authority has approved or disapproved of the Tokens or passed upon the accuracy or adequacy of the FST. Any representation to the contrary is a criminal offense.
THE TOKENS CONSTITUTE UNCONDITIONAL LIABILITIES OF THE ISSUER, AND THE GUARANTEE CONSTITUTES AN UNCONDITIONAL OBLIGATION OF THE GUARANTOR.
The Tokens are not insured or guaranteed by the Federal Deposit Insurance Corporation, the Bank Insurance Fund or any governmental or deposit insurance agency.
The Tokens are Decentralized Synthetic Digital Derivatives developed on Hedera Hashgraph's technology and are not registered securities and will not be listed on any securities exchange; transfer restrictions may apply. Fluctuations in foreign exchange rates may adversely affect the return on the Tokens.
The fund should not be misunderstood as a “crypto-fund” as it continues to operate as earlier. VAL has tokenized existing capital unlike “crypto-funds" which rely on token sale for raising capital. Vestinwolf’s Fund-linked Security Tokens benefit from the technological efficiency & utility offered by Hedera Hashgraph.
