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Weekly Update Report #44

April 19, 2019

 

From The Fund Manager

 

Dear Investors,

 

This week's yield was positive but mild. We saw a few good trades late in the week which bore a significant portion of this week's growth.

 

Due to a short period of school break here in South Australia and upcoming public holidays, there will be minimum staff available next week. Please keep this in mind when waiting on email replies or other similar correspondence. We thank you for your understanding.

 

As discussed last week, we want to outline some of our planned changes to the fund as below:

 

CHT Contract/Tokens

Preliminary discussion suggests tokens themselves can be retrofitted with changes as opposed to having to reissue tokens.

 

Fund Structure

To ensure that the fund would remain cost effective and easy to run, investors will hold preferential shares, whilst the fund manager will hold ordinary shares. A board of directors will not be required. Fund structure will be retained in Seychelles, with a separate trust entity to hold trading funds, which jurisdiction is to be confirmed.

 

Custodian

This is to be confirmed, working with third parties. Cost to be borne by the fund.

 

Fund Manager's Fees

The Fund Manager charges a Management Fee of 2.5% p.a. of fund size, and a 25% Performance Fee on profits made.


Performance Reporting

To be done monthly instead of weekly

 

Dividends

  • We have started talks with developers for possible dividend solutions.

  • Initially, dividends will be distributed quarterly.

  • We will explore a monthly dividend distribution in the future, especially once the fund reaches its targeted fund size. We are currently exploring an account structuring solution that could accommodate a monthly distribution, whilst minimizing trading pauses.

  • Amount to be distributed will depend on profits for the quarter and the volume of CHT transactions on the exchanges will also be taken into consideration.

  • We will likely start with a small dividend distribution and will gauge its effects on the exchanges.

  • We want to avoid overpaying dividends at this stage for two main reasons being: the fund is still growing; and that this may lead to a higher taxation for our investors.

  • Time for the first dividend is still being considered, and could start as early as after the first or second quarter of the dividend mechanism being implemented.

  • We are exploring options to disburse dividends with a combination of stablecoin & fiat. Any market spreads (crypto or forex) and associated disbursement costs will be charged back to the fund/investors.

Investor Registry & AML/KYC

Deadline will be advised once dividend solution is decided.

We are likely to allow 60 days for investors to perform registration & AML/KYC.

 

Current Buyback Queue

Current requests will be on hold until all trading funds are transferred into new accounts.

All buyback requests in the queue will be satisfied during the trading pause for transfer of funds -- The time frame for this could be 2-3 months, this may change subject to progress of restructuring and the investor registration process.

 

Transfer of Funds

Mintie will be paused for about 2 weeks as funds are physically transferred into new accounts. Dates will be announced.

 

Future Buybacks

Buybacks will be processed quarterly with a submission deadline.

There will be a redemption gate of 20% per quarter.

Redemption Fee: $100 per request or 0.2% whichever is higher

 

Next Steps

  1. Entity restructuring to be completed.

  2. Dividend solution to be decided & work to start.

  3. Investor registration to commence.

That's all from us until next week. Thank you for taking the time to read the report this week and have a great weekend.

 

 

Best regards,

 

Tim Dawson

Fund Manager
Countinghouse Fund

 

 

 

Weekly Performance

 

 

Market Activity Summary

 

Market Data Source: Thanks to @BazzWatkins

 

Photo Credit: Sharon McCutcheon on Unsplash

 

 

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