Ainslie Bitcoin & Bullion Fund
The Ainslie Bitcoin & Bullion Fund is designed to mitigate substantial drawdowns by strategically capitalising on Bitcoin during growth phases and utilising the stability of gold and silver during periods of Bitcoin drawdowns.
The Ainslie B & B Fund is an unregistered wholesale managed investment scheme aiming to preserve and grow capital by strategically allocating assets across Bitcoin, Gold, and Silver, with the objective of outperforming the Reserve Bank of Australia Cash Rate plus four per cent per annum.
The Fund’s philosophy centres on these assets' potential to outperform monetary debasement and preserve wealth. The Investment Manager employs a disciplined strategy, actively adjusting the portfolio based on macroeconomic trends and global liquidity conditions.
This involves increasing Bitcoin exposure early in the economic cycle, shifting towards Silver while maintaining Bitcoin mid-cycle, and prioritising Gold during economic tightening to optimise performance across dynamic market phases.
The Fund is a wholesale fund, or an unregistered managed investment scheme structured as a unit trust. In this structure, money invested in the scheme by all Investors is pooled and used to buy investments, which are managed on behalf of all Investors by the Investment Manager. The Trustee has day-to-day control over the operation of the Fund. By investing in the Fund, Investors access Ainslie Wealth’s specialist knowledge and investment strategies.
Investment Objective
The investment objective is to preserve and grow capital by strategically allocating assets to Bitcoin, Gold, and Silver with the aim of outperforming the RBA Cash Rate plus 4% p.a. The Investment Manager intends to implement a strategy that monitors macroeconomic trends and global liquidity conditions to inform its investment decisions.
Depending on the economic phase, the Portfolio adjustments will be as follows:
- at the onset of the cycle’s recovery phase, the Investment Manager will increase its investment in Bitcoin, while reducing exposure to Gold and Silver;
- during the transition from mid to late cycle, the Investment Manager will adjust its allocation towards Silver, based on the Gold to Silver ratio (GSR) and market indicators, reducing Gold allocation but maintaining a significant position in Bitcoin;
- as the cycle tightens, Gold is prioritised, with Bitcoin and Silver receiving significantly smaller allocations.
Investment Philosophy
The Fund’s investment philosophy is centred around the belief that Bitcoin, Gold, and Silver are assets that can outperform monetary debasement and preserve wealth during periods of economic uncertainty. It seeks to capture the historically large increases in Bitcoin prices at certain periods and to protect investments by holding Gold before large historical retracements and during periods of economic uncertainty that favour Gold.
The Fund will actively invest in Gold, Silver, and Bitcoin, with investment decisions driven by monitoring macroeconomic trends and global liquidity conditions.
The Fund’s investment strategy is designed to respond to economic cycles and adjusting allocations accordingly. In response to economic cycles stages, the Investment Manager will increase Bitcoin exposure in the early recovery phase, shift to Silver but maintain a significant Bitcoin position in the mid to late cycles, and prioritise Gold during downturns.
The Investment Manager will prudently manage inflows and outflows to maintain its strategic outlook and weighting targets, with a view to minimising spread costs.
The Investment Manager is focused on applying a methodical and highly structured approach to the investment process and investment decision making. The Investment Manager’s Investment Committee convenes weekly to discuss and refine the macroeconomic framework under which the manager operates.
Each of these meetings is guided by a pre-prepared report that includes critical economic indicators essential for their strategic deliberations. The Economic Advisory Panel, headed by Ainslie’s Chief Economist, presents the report to the Investment Committee, and together they discuss and field questions on it.
During these sessions, the Investment Committee's primary objective is to assess the current economic landscape and determine the prevailing liquidity phase. This analysis forms the basis for adjusting the Investment Manager’s investment strategies for the subsequent week, aligning them with the observed economic conditions. This structured approach ensures that the Investment Manager’s investment decisions are continuously updated, responsive, and strategically informed, thereby optimising performance in a dynamically changing economic environment. The investment process is thorough and disciplined. It provides for various ‘checkpoints’ for the Investment team to decide on whether to progress the Fund to the next stage of the investment process. The Economic Advisory Panel and CIO will share their thoughts regularly in various media formats to be open and transparent.
- Strategic Asset Mix: Access a curated portfolio of Gold, Silver, and Bitcoin, precisely and strategically allocated for resilience and growth in a fluctuating economy.
- Dual-Advantage Investments: Benefit from assets with a proven track record of not just safeguarding but also increasing profitability.
- Secure, Direct Redemption: Take additional comfort in the assurance of physical, in-specie redemption of assets, securely stored by an Australian custodian.
- High Liquidity: Weekly cash and in-specie redemptions with highly liquid assets, ensuring accessibility.
- Expert-Led Growth Strategy: Trust in our macroeconomic analysis and global liquidity insights, employed to dynamically optimise portfolio performance amidst evolving market conditions.
2008 marked a pivotal shift in the global financial landscape, coinciding with the birth of Bitcoin. This period witnessed the onset of an unprecedented monetary expansion regime from central banks in response to the Global Financial Crisis. This shift has had profound implications for investors and asset management strategies as liquidity expansion has rewritten traditional metrics and drivers.
The Ainslie Bitcoin & Bullion Fund recognises that the monetary and fiscal expansion regime demands a new approach to portfolio construction.
Bitcoin's unique status and potential for long-term growth stems from its decentralised nature, limited supply, and expanding adoption. This combination positions Bitcoin to capitalise on network effects as described by Metcalfe's Law, which posits that a network's value increases exponentially with the number of users. Furthermore, Amara's Law, which suggests that we tend to overestimate the impact of technology in the short term and underestimate it in the long term. One only has to look at Amazon before and after the dot.com boom and 'bust' as a prime example of both laws in action.
By combining Gold, Silver, and Bitcoin, the Ainslie Bitcoin & Bullion Fund offers investors exposure to an asset class that can weather the storms to provide long-term capital appreciation and protection. These assets have demonstrated resilience and growth potential in various economic environments, making them valuable components for any investor's portfolio.
The information in this website (the 'material') has been prepared by Ainslie Wealth Holdings Pty Ltd (ABN 75 647 626 784) (the 'Trustee', 'us' or 'we') as the Trustee of the Ainslie B & B Fund (the 'Fund'). The Trustee is a corporate authorised representative (CAR No. 1315240) of Ainslie Group Holdings Pty Limited (ABN 94 676 163 974, AFSL 560644) (Ainslie Group Holdings) and appoints Ainslie Group Holdings as its AFS licensed intermediary under s911A(2)(b) of the Corporations Act 2001 (Cth) to arrange for the offer to issue, vary or dispose of units in the Fund.
The material is for general information only and is not an offer for the purchase or sale of any financial product or service. The material has been prepared for investors who qualify as wholesale clients under sections 761G of the Corporations Act or to any other person who is not required to be given a regulated disclosure document under the Corporations Act. The material is not intended to provide you with financial or tax advice and does not take into account your objectives, financial situation or needs. Although we believe that the material is correct, no warranty of accuracy, reliability or completeness is given, except for liability under statute which cannot be excluded. Please note that past performance may not be indicative of future performance and that no guarantee of performance, return of capital or a particular rate of return is given by Ainslie Group Holdings, the Trustee or any other person. To the maximum extent possible, Ainslie Group Holdings, the Trustee or any other person do not accept any liability for any statement in this material.
The Ainslie Group’s story began with the founding of Ainslie Bullion in 1974, a company that has since become a cornerstone of the Australian precious metals market.
With a legacy that spans over five decades, The Ainslie Group has expanded its reach and deepened its expertise to include a suite of services that enhance our traditional bullion business. Ainslie Bullion is Australia’s second-largest independent bullion dealer and Perth Mint’s Primary Distributor.
This has been complemented by our strategic expansions—Ainslie Crypto, The Gold & Silver Standard, Reserve Vault, The Melbourne Vault, and now Ainslie Wealth — broadening our scope into the realms of digital and tokenised assets, secure storage solutions, and a wealth management fund.
The Chief Investment Officer leads and supervises the fund's investment process, taking ultimate responsibility for decision-making on asset allocation and risk management.
Paul Engeman serves as the Chief Investment Officer at the Ainslie Group, spearheading the fund's investment strategy and oversight. With over 11 years of executive experience at the Ainslie Group, Paul has expertly managed the firm's expansion into precious metals and cryptocurrency markets. His understanding of macroeconomic trends, asset allocation, and risk management ensures the fund's portfolio is strategically positioned for both stability and growth. Paul's leadership has been instrumental in driving Ainslie Group's success, leveraging his extensive background in residential property development, civil engineering, and high-value logistics.
The Chief Economist develops and refines the investment strategy and coordinates and produces economic research to inform asset allocation decisions. He is the public-facing, educational voice of the fund.
Christopher Tipper, as Chief Economist and Strategist for the Ainslie Group, brings over two decades of finance and analytical expertise to the fund. Specialising in macroeconomic analysis and global liquidity cycles, Christopher develops and refines the fund's investment strategies, focusing on Bitcoin and precious metals. His role includes leveraging artificial intelligence to enhance strategic investment decisions. Previously, Christopher held significant educational roles within Education Queensland and has been a driving force at CT Analytics Pty Ltd, providing cutting-edge financial insights. He holds a Bachelor of Business (Management) and a Bachelor of Education from The University of Queensland, underpinning his authority in economic and business strategy.
The Fund Manager oversees strategic and operational aspects of the fund, including informing and implementing investment decisions. A key member of the Investment Committee, he represents the fund in new business development opportunities.
Joshua Lang, as Fund Manager and Digital Assets Manager for Ainslie Wealth, brings a robust background in financial management and digital asset innovation to his role. With extensive experience managing the Ainslie Crypto brokerage service and the Gold & Silver Standard units, Joshua has honed his expertise in steering strategic and operational initiatives. His career is marked by a focus on developing and refining digital financial products, where he has leveraged market research and data-driven strategies to enhance product offerings and drive business growth.
The Research and Analysis Manager seeks to establish a broad and diverse understanding of the fund’s current investment environment to further refine the asset allocation decisions. He represents the fund publicly, providing depth and engagement for investors.
Joseph Brombal, the Research and Analysis Manager at Ainslie Wealth, leverages his military precision and analytical skills in the finance sector, focusing on precious metals and digital assets. With over 11 years of service in the Australian Army, including leadership roles in high-pressure environments, Joseph transitioned to finance where he now excels in market analysis and investment strategy. His portfolio management expertise in Bitcoin, gold, and silver is supported by a disciplined approach to risk management and continuous learning. Joseph's analytical acumen and strategic insights significantly contribute to the fund's research capabilities and overall investment strategy.
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The Ainslie Bitcoin & Bullion Fund is an investment fund that combines Bitcoin, Gold, and Silver to provide a diversified portfolio. This mix of assets aims to offer both growth potential and wealth protection by strategically managing exposure to these scarce assets.
The Ainslie Bitcoin & Bullion Fund is available only to wholesale investors. Both individual and institutional investors can invest, provided they meet the fund's minimum investment requirements and other eligibility criteria.
Ainslie Wealth employs a dynamic investment strategy that is guided by thorough macroeconomic analysis and global liquidity conditions, which have been shown to cyclically correlate with the assets in this fund. By actively managing the allocation of Bitcoin, Gold, and Silver, the fund aims to mitigate the risks associated with market volatility and economic downturns.
Both managed funds and hedge funds pool investors' money to invest in a diversified portfolio of assets. They are managed by professional portfolio managers who use various strategies to achieve the fund's investment objectives. However, hedge funds often have more flexible investment strategies and higher fees compared to traditional managed funds.
The Ainslie Bitcoin & Bullion Fund offers a unique combination of Bitcoin, Gold, and Silver, providing a diversified approach that leverages the strengths of each asset class. Unlike single-asset ETFs, this fund holds each real asset directly and offers in specie redemptions, allowing investors to take the assets instead of AUD payment upon leaving the fund. The fund strategically allocates assets to maximise returns and mitigate risks based on global macroeconomic trends and liquidity conditions. This comprehensive strategy aims to offer superior protection and growth potential, making it a compelling choice for investors seeking a balanced and dynamic investment solution.
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This offer of scheme interests is available to wholesale clients only. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets (Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.
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