Affin Bank Debuts Malaysia's First Managed Digital Asset Fund

Cross Light Capital and Affin Bank Bhd have unveiled Malaysia’s first actively managed fund focused on digital assets, the Performa Digital Asset Fund, which aims to provide exposure to digital assets through exchange-traded funds (ETFs) and exchange-traded products (ETPs).

This fund, as reported by The Edge Malaysia, is distributed exclusively through Affin Bank’s invitation-only suite, Affin Invikta, catering to premier banking customers. The fund invests in Bitcoin, Ether, and blockchain-related companies via publicly listed investment instruments, including firms like Coinbase Global Inc. and Ubisoft Entertainment SA.

“We are thrilled to partner with Affin Bank to bring this unique digital asset fund to the Malaysian market,” said Jason Lee, CEO and Chief Investment Officer of Cross Light Capital. “Our actively managed approach allows us to navigate the digital asset space effectively, providing our clients with a sophisticated investment vehicle beyond traditional asset classes.”

Calvin Goon Cheng Yu, Head of Wealth Management at Affin Bank, emphasized the bank’s commitment to delivering exceptional value to its customers. “By offering access to Cross Light Capital’s digital asset fund, we enable our clients to diversify their portfolios and tap into the potential of the digital economy,” he stated. He also highlighted the convenience and investor protection provided by the wholesale fund, which is approved by the Securities Commission Malaysia.

The Performa Digital Asset Fund allocates its investments equally, with one-third dedicated to Bitcoin ETPs, another third to Ether ETPs, and the remaining portion to blockchain-related equities. The fund is designed for sophisticated investors with a high tolerance for risk, anticipating a maximum drawdown of 30% to 60% within any one-year period.

Investors are encouraged to adopt a long-term perspective, with a suggested investment horizon of five to ten years. The initial minimum investment is set at US$1,000, with an initial sales charge of up to 5% and an annual management fee of 2%. There are no withdrawal fees.

The fund’s trustee is MTrustee Bhd, with Crowe Malaysia PLT serving as the external auditor and Interactive Brokers LLP as the prime broker and custodian.

This collaboration marks a significant step in providing sophisticated investors with opportunities in the expanding digital asset space. As digital assets like Bitcoin and Ether gain popularity, their appeal extends beyond niche markets to mainstream investors and financial institutions.

The increasing demand for cryptocurrencies reflects a broader trend toward embracing digital assets. Investors are drawn to their potential for high returns and portfolio diversification, supported by a growing infrastructure of exchange-traded funds (ETFs) and products (ETPs).

By integrating digital assets into mainstream investment strategies, financial institutions meet growing market demand, why is why many countries are now starting to catch up to this industry.