As of 30.06.2022

Iconic Smart Beta Diversified Strategy

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Product Details

Minimum Investment$100,000
Liquidityinstant via API
Management Fees2% annually
Performance Fees20% with HWM (* Calculated on the outperformance over Bitcoin)
StructureSeparately Managed Accounts (SMAs) – Iconic Alpha AG

Performance Data (Back-tested) 

Strategy Returns / Risk IndicatorsTimeStrategyBitcoin
Cumulative ReturnsYTD-55.74%-56.88%
3M-53.62%-56.22%
6M-55.74%-56.88%
BTD2,290.44%424.66%
Annualized Returns1Y-19.57%-43.14%
BTD147.66%60.58%
Annualized
Volatility
1Y65.37%68.15%
BTD71.36%74.76%
Tracking Error1Y13.49%
BTD17.92%
Information Ratio1Y1.82
BTD4.86
Maximum Drawdown1Y-66.74%-71.90%
1Y-66.74%-71.90%
Outperforming MonthsBTD66.67%
BTD63.41%
Calendar2019202020212022
Jan-6.29%30.79%35.85%-16.42%
Feb14.39%-3.29%78.75%5.41%
Mar12.71%-19.67%44.00%8.32%
Apr22.93%32.82%24.04%-19.14%
May60.66%12.19%-23.46%-13.78%
Jun25.14%-0.83%-7.45%-33.47%
Jul-7.80%26.99%16.59%
Aug-8.04%12.64%29.95%
Sep-13.56%-7.40%-0.70%
Oct7.64%23.52%38.48%
Nov-13.85%41.77%3.39%
Dec-3.43%41.73%-15.64%
Year95.97%393.61%458.33%-55.74%

* Back-tested Performance (BTD) : The returns presented herein for the period 1st January 2019 through 30th June 2022 represent back-tested performance and do not reflect trading in actual accounts. Such returns are hypothetical and are provided for informational purposes only to indicate historical performance and simulate how the investment would have performed had the strategy been implemented during that time. Back-tested results have inherent limitations as to their relevance and no hypothetical trading record can completely account for the impact of financial risk or other market related factors in actual trading, therefore no representation is being made that the strategy will achieve performance similar to the simulated results, and past performance is no guarantee of future results.
* Live Performance Results: The strategy was launched at Iconic on 1st July 2022 with real AUM and has been trading live ever since on proprietary trading accounts and across the same trading venues used for our investors under separately managed accounts (SMAs). The performance figures shown are net of global execution costs based on our trading accounts’ investment results and are calculated net of 2% annual management fees (paid quarterly) and 20% performance fees (benchmarked over Bitcoin and paid annually with HHM). These investment results are not audited nor verified by a third-party administrator.

General Information

Summary
  • Enhancing returns vs. traditional indices
  • Diversification across a large crypto universe
  • Reducing risk vs. the underlying market
  • Strategy benchmarked over Bitcoin
Investment Objective

The Iconic Smart Beta Diversified Strategy is benchmarked over Bitcoin and designed to provide a global market exposure with improved diversification across a rather large universe of crypto assets. The investment objective is to enhance returns by capturing consistent Alpha over the underlying core market, while reducing overall risk compared to traditional capitalization-weighted indices. The portfolio is built using several smart beta indices, each of them following distinct alpha-seeking methodologies across trend following models, momentum indicators and thematics’ allocation. The volatility of the portfolio’s returns relative to its benchmark will be monitored as a tracking error and recalibrated over time.

Investment Strategy

The strategy is an actively managed allocation across four proprietary smart beta indices, rebalanced weekly using alternative data and market sentiment tools, and bringing overall decorrelation vs the underlying core market.

  • Bitcoin RV Tilt : A long BTC exposure tilted with several RV trend following models implemented across core and liquid trading pairs.
  • All Stars 1/n : Long Only models implemented across a curated universe of n rising coins for 1/n % each and allocating to the coin in case of positive trends, or to Bitcoin otherwise.
  • Top 50 Momentum : The index is designed to pick coins with strongest uptrends based on momentum indicators, with a weekly turnover smoothed over daily rebalancing mechanisms
  • Global Thematics : The index enables exposure across 10 distinct thematics (Store of Value, Smart Contracts, Privacy, NFTs, Web 3.0, Interoperability, CEXs, DeFi, Memes and Stable Coins) based on sentiment scoring with daily rebalancing.
Iconic Smart Beta Diversified Strategy Performance vs. Bitcoin

The adjacent chart shows the investment performance of the minimum subscription amount of $100,000 into the strategy on a logarithmic scale. The returns presented herein for the period 1st January 2019 through 30th June 2022 represent back-tested performance and do not reflect trading in actual accounts. The strategy was launched at Iconic on 1st July 2022 with real AUM and has been trading live ever since on proprietary trading accounts. The performance track shown uses daily points, calculated at 0h00 UTC net of all fees and global trading costs based on our trading accounts’ investment results. Please refer to the previous page for more details.

Iconic Smart Beta Diversified Strategy Drawdowns vs. Bitcoin

The adjacent chart shows the evolution of the strategy’s drawdowns over time since 1st January 2019, relative to Bitcoin. Even though the strategy is not designed with an emphasis on risk reduction and drawdown control, as opposed to the absolute return program, the chart shows that drawdowns are still nicely reduced compared to the benchmark over time. This is achieved by consistently monitoring the volatility of the portfolio’s returns and drawdowns relative to its benchmark. Drawdowns are calculated daily at 0h00 UTC and based on our trading accounts’ investment results, net of all fees as per above.

Market Sector Breakdown
About Iconic Alpha AG

Iconic Alpha AG is a subsidiary of Iconic Holding GmbH which is the holding company of a series of subsidiaries that issue and manage crypto asset investment vehicles and strategies. Collectively, Iconic Holding GmbH and its subsidiaries are branded as “Iconic Holding”. The Quantitative Solutions’ Team is the latest addition to the Group and brings trading technology expertise, specialized in quantitative strategies and execution with dedicated infrastructure for the cryptocurrency market. The team brings a wealth of experience from both traditional and crypto markets and will supervise the development of investable alpha-seeking strategies, while providing tailor-made solutions for institutional and qualified professional investors.

Crypto Market Risks

The crypto markets are extremely volatile and subject to additional investment risks relative to traditional investments including, but not limited to inherent technological risks in the blockchain, severe and sudden volatility and market manipulation. The strategy is designed as a long- term investment and investing in the strategy involves the risk that you may receive little or no return from your investment or that you may lose part of even all your investment. The strategy seeks to provide steady returns over time while reducing risks, therefore the strategy’s performance may over-or underperform the overall crypto asset market.

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Iconic Alpha AG (registration number FL-0002.681,478-9) domiciled at CV Labs Building, Aeulestrasse 74, 9490 Vaduz, Liechtenstein.