Fund Acquisition and Investment Strategy
Our strategy relies on “micro-income” that is used to make micro-investments. We will use cashback rewards from purchases and the financial transactions participants of our DeFi caxhbox make every day. This money is then going to be invested by ABC Swiss Group in safe financial instruments and other investments that guarantee stable, long-term returns, such as real estate or photovoltaics. We already have experts with considerable experience in finance and investment markets on our team, like Mr. Piotr Dubno, former Head of Investment Department of one of the National Investment Funds and executive vice president of PKO/Credit Suisse Fund Management Poland, or Mr. Marcin Czyża – former Deputy President of the Polish Agency for Enterprise Development. Our investment strategy involves analysing all available data and investment parameters, including current market condition, potential risks, as well as micro- and macro-economic situation to make only the best investment decisions.
We will construct an efficient portfolio that offers the best risk/reward profile within the tactical risk budget.
We will structure our portfolio to serve purposes that can be described as having a solid future orientation rather than being oriented towards speculative opportunity. We also strongly believe in diversifying asset classes. The goal is to find the best possible risk/return mix and provide downside protection through diversification while simultaneously building our asset mix as focused on sectors that – we firmly believe – are poised to be attractive long-term investments.
Our capital market expectations are – in broad strokes – focused on the assumption that, in the coming years, the most significant value created will primarily be delivered by companies from the following sectors:
Crypto-assets and companies developing blockchain-enabled applications that have the potential to become seriously disruptive solutions. We believe that these assets and applications will relatively quickly become a mainstream phenomenon while the underlying blockchain technology will genuinely disrupt multiple industries. Many sectors of the economy are already accelerating toward a digitalised and decentralised future. Blockchain technology has, therefore, the potential to become a source of the largest and fastest wealth creation in history.
Tech: The tech revolution is an immensely powerful and irreversible trend. Just in the past year, five companies: Microsoft, Google, Apple, Nvidia, and Tesla were responsible for 1/3 of the S&P 500 index annual return. We're perfectly aware that past results are not indicative of future performance. However, this result does confirm the phenomenon adequately described in Marc Andreessen's famous 2011 essay Why Software Is Eating the World.
Renewable energy: As climate change accelerates, the pressure to become carbon neutral increases. This is true at every level – from countries through companies to individual households. Renewable energy sourcing is the key to achieving carbon neutrality goals, which won't change anytime soon.
Real estate: Rapid growth of the human population combined with bubbling up inflationary pressures will provide attractive and relatively steadily rising real estate prices. We believe that the most prudent and safest way to access the real estate markets will be through specialised funds and other paths that would allow investing in diversified portfolios and occasionally tactical tilting the real estate mix when necessary.
Other investments: from a tactical and opportunistic perspective – as well as from a liquidity management standpoint – we will also utilise other, more traditional assets & instruments, ranging from stocks and bonds to risk control instruments such as derivatives.
It is our goal to keep organisational costs in control. Therefore, our investment process philosophy will involve a mixed approach to stock selection within sectors and asset classes we decide to invest in. The multi-asset nature of our approach means we cast the net wide to find individual investments. At the same time, we will take advantage of ETFs and other instruments that track large, diversified pools of assets as well as investment funds with prudent investment processes and proven results. When assessing particular funds for potential investments, we will emphasise performance attribution and professional experience of the people, i.e. the asset managers and traders working for those funds.
This approach will provide us with both liquidity and diversification, effectively granting the portfolio downside protection, i.e. relative safety of invested capital.
The investment process will be guided by a careful and organised approach that takes advantage of our asset management team's professional experience and incorporates the best practices of portfolio management. Allocation decisions and subsequent rebalancing adjustments will be subject to investment committee consideration.
We will be exercising a prudent approach toward risk controls, aiming to provide the portfolio with reasonable downside protection – both built-in (diversification) and exercisable through liquidity if a need for relatively quick portfolio rebalancing arises.
The goal is to take the idea of investment vehicles to a whole new level. Cashbacks are already widely popular among consumers. Bank accounts have similar round-up features that automatically deposit funds in participants’ savings accounts. The same principle is going to apply to Future Fund. At the same time every invested cashback amount will be traceable on the blockchain. In return for their investments, our users will be receiving tokens. We are calling it Future Token.