Financial

Select 5 Index

1. Performance by asset class over the last 5 years: S&P 500: +42.4%; SPDR Gold Shares ETF: +4.5%; iShares MSCI Emerging Markets ETF; +7.0%; S&P GSCI All Crude TR: -64.6%; S&P U.S. Treasury Bond Current 10-Year Index: +15.5%; Bitcoin: +1165.6% (as of Feb 28, 2021).

Summary

The Wave Select 5 Crypto Fund has strict inclusion criteria that ensures exposure to only quality cryptocurrencies as determined by the Wave Select 5 Index Investment Committee.

The Wave Select 5 Index Investment Committee meets two days before the rebalancing date and makes decisions on which assets will be included/excluded from the next iteration of the index fund.

Criteria for including
index constituents

Market Capitalization Weighted

Cryptocurrencies are ranked by market capitalization on the last business day of every month. The top 5 cryptocurrencies are then weighted by market capitalization with no cap or floor and then included with their respective weights in the index.

Certain Coins Categorically Excluded

Stable coins, such as Tether, are excluded as they are not designed to increase in value over time. Privacy coins, such as Monero, are excluded due to their regulatory uncertainty.

Security

The committee reserves the right to remove a crypto asset from the index regardless of market cap due to high default risk. This includes: SEC reviews, drastic fall in hash power, little to no Github activity, critical bug discovered in the network. Other events that signal failure such as a 51% attack or well documented security flaw with the asset can lead to removal as well.

Historical Performance

The Wave Select 5 Index currently covers ~76% of the total market capitalization.1

Rank (1-5) Weight2
Bitcoin (BTC) 76.84%
Ethereum (ETH) 18.78%
Cardano (ADA) 1.93%
Binance Coin (BNB) 1.38%
Polkadot (DOT) 1.08%

1. Cryptocurrency selection for index fund will be based on reasonably available data and subject to necessary judgement calls by management given data supply problems that currently exist in the sector.
2. Rank as of Feb 28, 2021
3. The Wave Select 5 Index returns represent a hypothetical performance assuming an initial $100,000 investment. Data is current as of Feb 28, 2021.

Competitive Advantage

Wave Select 5 Crypto Fund is a crypto asset index fund providing beta (market exposure)

Convenience
Single investment vehicle without the administrative hassle of portfolio rebalancing, multiple exchange accounts or Crypto asset security
Simplicity
Easy entry point to invest in Crypto assets, as tax implications are similar to owning a stock and are simple to calculate off NAVs
Market Exposure
Wave Select 5 Index currently covers 80%+ of cryptocurrency market cap, providing pure beta exposure
Low Cost
1.00% management fee with zero incentive fee or lending fee
Security
State of the art custodians to safely protect Crypto assets in the fund

Key Offering Details

Offering Schedule & Liquidity

Fund Wave Select 5 Crypto Fund (BVI master entity with US and BVI feeder)
Benchmark Index Wave Select 5 Index
Investment Manager Wave Financial LLC
Fees 1% p.a. management fee, no performance fee
Subscription Twice a month
Redemption Monthly at the month end NAV
Deadline 5 business days before subscription and redemption dates
Min Investment CONTACT US FOR MORE INFORMATION

FAQs

You may visit our website at www.wavegp.com where you will be provided with an offering document and asked to provide qualifying information so that we can perform our initial onboarding including KYC/AML and verification of accredited status.

The index fund covers approximately 76% of total crypto currency market capitalization, at end of March 2021.  This coverage ratio will be subject to market movements of the constituents versus the market.

We mainly source large assets from crypto exchanges such as Binance and Coinbase.

The fund holds the crypto assets in a custody account with Zodia and Copper.

We accept USD.

 The Wave Select 5 Index level will be available on our homepage at www.wavegp.com  The fund administrator will provide a monthly NAV report on the value of the investment.

Wave Financial does not offer tax advice, and recommends that potential investors seek professional tax counsel.

Redemptions are available monthly.

Important Risks

Index Related

Performance of an index is not illustrative of any particular investment. The Wave Select 5 Index represents a hypothetical, back-tested, and unaudited return-stream that does not represent the returns of an actual account. Index performance does not include the fees and expenses. Actual returns may differ materially from hypothetical, back-tested returns. Back-testing is calculated by retroactively applying an Index-weighting methodology to the historical data. Cryptocurrency selection for the index fund will be based on reasonably available data and is also subject to necessary judgement calls by management given data supply problems that currently exist in the cryptocurrency sector.

Portfolio Manager Discretion

The Portfolio Manager has discretion to overweight or underweight the exposure to certain crypto currencies regardless of the benchmark index. This may result in over or under performance of the product relative to the benchmark index. Also, for this particular product, because the Portfolio Managers are also serving as the Index Calculation Agent, there may be a conflict of interest when changes are applied to the index calculation methodology.

Past Performance

Past Performance is no guarantee of future results. The back-tested index performance is no guarantee of future results of the product, and is retroactively calculated based on historic values. Slippage, fees and market activities such as forks and splits may contribute to an over or under performance of the product relative to the benchmark index. The constituents of the index may not be mimicked completely by the product. Historical index based on Jan 2017 start date.

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