Balmoral Digital launches new fund

Yasmine Raso

Senior Journalist, Financial Newswire

2 March 2022

Australian digital fund manager, Balmoral Digital, has announced the launch of its new Digital Assets Fund that offers wholesale and institutional investors opportunities for risk-adjusted returns and yield in the digital asset sector.

Co-founders and portfolio managers, Angus Crennan and Jesse Smythe, lead the fund with a combined 30 years of experience in the financial services industry and digital assets.

“We consider ourselves partners pioneering the journey to new wealth creation for our clients. We understand the uncertainty for investors as we enter year three of the pandemic and have identified an investment opportunity that is an attractive proposition even within a volatile market,” Crennan said.

Crennan also highlighted how traditional methods of income generation such as term deposits or bond yields have been hampered by central bank activism, leaving investors to consider alternative options like digital assets.

“While the return on investment from global shares remain positive, investors are being asked to accept modest earning yields of 3-4% at the risk of double digital losses, hardly the asymmetry investors usually seek.

“Motivating factors for investors to consider alternative opportunities include portfolio diversification, real returns and attractive levels of income.

“As a rapidly growing and differentiated asset class, digital investments are becoming an increasingly fundamental component of the financial ecosystems of tomorrow. We are investing in the future and see digital assets as the next decade’s single most attractive opportunity in the investment space.”

Crennan also said the digital asset class is set to record one billion users by 2026 due to its 113 per cent per annum adoption rate.

“The rise of digital assets is undeniable and represents an incredible opportunity. 30% of the global population do not have access to a bank account, yet most have phones. Which means people now have access to a financial system that previously they were prohibited from,” Smythe said.

“We expect exponential growth in digital assets in the short to medium term. We also expect the continued explosion in adoption and network effects will generate a tailwind to positive performance for years to come.

Investing in the digital space offers a significant strategic advantage for our clients and we are committed to delivering positive outcomes.”