GRIT Innolab AI Equity Arbitrage AIF

Subscription period has started now.

Invest in the fund

Invest in GRIT Innolab AI Equity Arbitrage AIF and get access to stable single digit returns with extremely low correlation to global equity markets.

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 the daily buying and selling signals while acting as Tied Agent in Denmark.

The expected return is 2-10% annually and the fund has an absolute return focus, where risk management and portfolio construction aim at managing downside risk.

The portfolio is a perfect diversifier and alternative to long only equities and short to medium fixed income exposure. It is possible to enter and leave the fund at the end of each month and minimum investment is EUR 100.000.

Monthly reporting is distributed to Morningstar, Bloomberg and Refinitiv and can also be followed online day by day.

The Fund may be marketed to is and available for professional investors, as defined in the markets for financial instruments directive MiFID II, 2014/65/EU, in Denmark, Finland and Sweden.

Administration fee

Management fee: 0.5%
Performance fee: 20%

Entry/exit fee

Entry fee: free
Exit fee: 0.25%-0.10%

Key documents

Before applying for subscription of shares, you should read the prospectus carefully. The prospectus has been created by GRIT Fund Management Company Ltd in connection with the offering of shares to describe the benefits and risks associated with investing in the fund. The Prospectus has been drafted in accordance with the Finnish act on alternative investment fund managers (162/2014) and the Finnish act on common funds (213/2019 (as applicable). The approval must not be regarded as any kind of recommendation of the fund. The prospectus is available below.

Subscription

The subscription process and application form will be online soon.

In the meantime please contact Henrik Bak or Peter Smedegaard for more information. The fund is exptected to launch January 2021.

Partner
+45 25556373

CEO
+45 60606020

Portfolio explainer

Frequently asked question (FAQ)

What is the investment strategy of the fund?

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.

Where can I follow my investment?

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.

Why should I invest in the fund?

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.

Who can invest?

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.

 

Who is the administrator and portfolio manager of the fund?

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.

Is there any minimum amount to invest for?

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.

What are the fees?

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.

Seed class:

  • Management fee: 0.5%
  • Performance fee: 20%

Normal class:

  • Management fee: 1.25%
  • Performance fee: 10%

How do I invest in the fund?

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.

How do I sell my shares?

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).

Value of the fund?

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.

Can I lose my investment in the event of bankruptcy?

The fund is supervised and cannot go bankrupt and deposits are not lost as in the case of a bank bankruptcy.

Is the fund liquid?

The fund will invest exclusively in liquid instruments, that can be liquidated within days. The fund provides monthly liquidity.

Is it a UCITS fund?

The fund is a so-called Alternative Investment Fund (AIF).

Can I invest from my pension funds in the fund?

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.

Is there leverage in the fund?

The fund leverages the capital on average by 180% which is very low compared to regular hedge funds.

Tax on gain and loss?

The fund does not pay dividends and is thus accumulating. Gains and losses are taxed according to the stock principle.

Innolabs AI Stock Portal 2021

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.

Proof of identity

Before you can subscribe to the GRIT Innolab AI Equity Arbitrage AIF, we require information about you as a client. All documentation and information referred to below must be delivered to GRIT or Innolab before orders from new clients may be processed.

Institutional clients – and other legal entities

New institutional clients (and other legal entities) must fill in an account opening form, provide a certified copy of the certificate of incorporation (or similar documentation), not more than three months old, as well as a certified copy of the ID of the person(s) signing the account opening form. If the name of the person signing does not appear in the certificate of incorporation, a power of attorney or an authorized list of signatories must also be provided.

Copy of ID – private individuals

Persons signing on behalf of the entity on the account opening form need to provide a certified copy of their passport or national identity card issued within the EU.

In addition, we require a copy of a bank statement, electricity bill or similar which confirms the name and address of the given person(s).

Beneficial owners

When you subscribe on behalf of a legal entity, you must provide the name, date of birth and contact details of the natural person(s) who directly or indirectly, alone or together with close relatives, owns or controls more than 25 percent of the shares or voting rights of the legal entity, or who otherwise ultimately owns or controls the legal entity.

The above-mentioned documentation and information must be delivered to GRIT or Innolab before orders from new clients may be processed.