KUALA LUMPUR (June 10): Cross Light Capital and Affin Bank Bhd have announced the launch of Malaysia's first actively managed fund that seeks exposure to the digital assets space through exchange-traded funds (ETFs) and exchange traded products (ETPs).

Affin Bank will be distributing the Cross Light Capital Performa Digital Asset Fund through Affin Invikta, an invitation-only suite of banking solutions for premier banking customers, giving its clients an opportunity to tap into the digital asset space. 

The Performa Digital Asset Fund invests in bitcoin, ether and blockchain-related companies through publicly listed investment instruments. These companies could be the likes of Coinbase Global Inc, a Nasdaq-listed cryptocurrency exchange or Ubisoft Entertainment SA, a video game publisher developing its blockchain-powered games.  

“We are thrilled to partner with Affin Bank to bring this unique digital asset fund to the Malaysian market,” says Jason Lee, CEO and chief investment officer of Cross Light Capital.

“Our actively managed approach allows us to navigate the digital asset space effectively, providing our clients with a sophisticated investment vehicle beyond traditional asset classes,” he adds.

Calvin Goon Cheng Yu, head of wealth management at Affin Bank Bhd, says the bank is dedicated to delivering exceptional value to its customers.

“By offering access to Cross Light Capital’s digital asset fund, we enable our clients to diversify their portfolios and tap into the potential of the digital economy.

“More importantly, this investment opportunity can be conveniently accessed through a wholesale fund approved by the Securities Commission Malaysia, ensuring investor protection and convenience,” he says.

Based on its presentation slides, the Performa Digital Asset Fund invests one-third in bitcoin ETPs, one-third in ether ETPs and the remaining portion in blockchain-related equities.

The fund is a wholesale fund open to sophisticated investors only and suitable for those with extremely high risk tolerance. The fund manager anticipates a maximum drawdown (in US$ share class) of approximately 30% to 60% over any one-year period.

Its investors should also have a long-term investment horizon of five to ten years, which is the period of one full market cycle estimated by the fund manager.

The initial minimum investment amount of the fund is US$1,000 and it charges investors up to 5% initial sales charge and 2% annual management fee. No withdrawal fee is being imposed.

The fund’s trustee is MTrustee Bhd. Its external auditor is Crowe Malaysia PLT and its prime broker and custodian is Interactive Brokers LLP.