The fund is launched to professional and semi-professional investors and the investment decisions are made 100% with artificial intelligence. The development of the AI engine and the design of the investment strategy is based on the team’s many years of experience in the investment and engineering industry.
The strategy is based on pairs trading, where stock and sector indices are traded against each other – also called statistical arbitrage. Pairs trading is a market-neutral strategy that enables returns to be created in virtually all market conditions: upward, downward or sideways movement.
The investment universe consists of over +50 different indices and new pairs are added continuously to the portfolio when the AI core identifies opportunities.
The performance of the fund can be followed daily through an online portal with personal login. The final NAV value is calculated at the end of each month.
Monthly reporting is also distributed to Morningstar, Bloomberg and Refinitiv.
The return target is 2-10% per year with high-risk management to avoid sudden losses.
The fund is what you call an absolute return fund or income fund, that is, the fund does not
follows a benchmark and thus does not follow the stock market or the movement of the bond market.
If you are tired of low interest rates on bonds or perhaps nervous about the stock market, the fund is a good alternative and the fund’s returns are completely independent of whether the stock market goes up, down or sideways.
GRIT Innolab AI Equity Arbitrage AIF (fund) may be marketed to and is available for professional investors, as defined in the markets for financial instruments directive MiFID II, 2014/65/EU, in Denmark, Finland and Sweden.
GRIT Innolab AI Equity Arbitrage AIF (fund) can be used for retirement savings, savings, corporate taxation schemes, holding companies and asset management.
The fund management is handled by GRIT Fund Management Company Ltd as AIFM, who has delegated portfolio management to Estlander & Partners Ltd. Innolab Technology A/S provides daily buying and selling signals while acting as Tied Agent in Denmark.
The Fund has a minimum investment of EUR 100,000 and only to professional investors who declares to be aware of the risks associated with the proposed investment.
The fund pays an annual management fee to the manager. In addition, a performance fee is paid on the return according to the high-water mark principle, so that the Manager cannot receive the performance fee of the same additional return several times. If the result for the year is negative, the loss must be recouped before the performance fee is paid again.
A high-water mark is defined as the highest NAV value the fund has had since its inception. Each time a new peak in NAV value is achieved a new high-water mark is set.
The fund has two classes with different fees.
To invest in the fund, you must fill in the online subscription form from the fund management company and deposit a minimum of EUR 100,000 into the fund’s bank account at Skandinaviska Enskilda Banken (SEB).
The fund is open to subscription once a month at no additional cost.
It is possible to enter and leave the fund at the end of each month with 14 days’ notice.
Exit fees in, year 1 = 0,25%, year 2 = 0,20%, year 3 = 0,15% and year 4 and onwards = 0,10% (calculated from the time of subscription).
The NAV value is determined by the last business day of each month. The equity value of the fund is calculated by adding together the values of the fund’s securities, including the cash balance, and then correcting for the fund’s costs and eventually dividing by the total number of shares in the fund.
The fund is supervised and cannot go bankrupt and deposits are not lost as in the case of a bank bankruptcy.
The fund will invest exclusively in liquid instruments, that can be liquidated within days. The fund provides monthly liquidity.
The fund is a so-called Alternative Investment Fund (AIF).
Only funds from installment and capital pensions and retirement savings in financial institutions can be used to purchase shares in the fund. You can invest up to 20% of the total funds in your pension deposit in the fund.
The fund leverages the capital on average by 180% which is very low compared to regular hedge funds.
The fund does not pay dividends and is thus accumulating. Gains and losses are taxed according to the stock principle.
As an added incentive for the first investors in the fund, these will get a free personal access to Innolabs AI Stock Portal. This will be launched during 2021. The portal predicts the development of the 500 largest stocks in the next month and is based on Innolabs AI robots.