Halogen Capital Is Malaysia’s First Digital Asset Fund Manager, Licensed By Securities Commission

Alex Cheong Pui Yin

26th July 2023 - 4 min read

Halogen Capital has become Malaysia’s first licensed fund manager that specialises in digital assets, seeking to bring innovative investing to both institutional and private investors in Malaysia. This homegrown entity, which officially soft launches today, offers a comprehensive suite of single asset funds, diversified funds, and even private mandates.

More importantly, Halogen Capital is licensed by the Securities Commission of Malaysia (SC), adhering to the strict regulatory requirements set up to protect investors, including the use of trustees and custodians registered by the SC, audited reports adhering to the Malaysian Financial Reporting Standards (MFRS), and investing in digital assets traded in SC-registered digital asset exchanges (DAX). In addition, funds offered by Halogen Capital are also shariah-compliant.

Currently, Halogen Capital has two wholesale funds: the Halogen Shariah Ringgit Income Fund and the Halogen Shariah Bitcoin Fund. The Halogen Shariah Ringgit Income Fund – which launched on 20 July 2023 – is a traditional fixed income fund that gives investors exposure to Islamic deposits, short-term sukuk, and Islamic money market instruments. This fund is designed to be a FD alternative offering high liquidity and aims to exceed 1-month FD rates as a benchmark.

Meanwhile, the Halogen Shariah Bitcoin Fund is described as “the world’s first shariah-compliant cryptocurrency fund that provides institutional-quality exposure to physical spot Bitcoin”, giving investors exposure to Bitcoin via a segregated unit trust structure. According to its product sheet, the fund will invest at least 70% of its Net Asset Value (NAV) in Bitcoin, with the remainder invested in sukuk, the Islamic money market instruments, and Islamic deposits.

This fund is only set to commence on 23 August 2023. A first of its kind, this fund allows investors to invest in Bitcoin in a familiar unit trust structure, without the complications of investing via exchanges and managing private keys and physical ledgers.

In terms of fees and minimum investment amounts for the two funds, here’s a quick summary for your convenience:

	Halogen Shariah Ringgit Income Fund	Halogen Shariah Bitcoin Fund
Minimum initial investment	RM10,000	RM10,000
Minimum additional investment	RM1,000	RM1,000
Sales charge (per unit)	Up to 0.50% of the NAV per unit	Up to 2.00% of the NAV per unit
Annual management fee	Up to 0.40% per annum of the NAV of the class	Up to 1.00% per annum of the NAV of the fund
Trustee fee	Up to 0.04% per annum of the NAV of the fund (excluding foreign custodian fees and charges)	Up to 0.06% per annum of the NAV of the fund (excluding foreign custodian fees and charges)
Others	No transfer fee, switching fee, redemption charge, performance fee, and hurdle value	No transfer fee, switching fee, redemption charge, performance fee, and hurdle value

More interestingly, Halogen Capital also offers private mandates (discretionary and non-discretionary) for those who prefer a customised approach and portfolio that aligns with their specific objectives. Strategies will be tailored according to your goals and risk appetite, and you can also adjust your own portfolio allocation as you like, without being impacted by other investors.

Some key offerings provided by Halogen Capital under its private mandate service include multi-coin portfolios (diversified between Bitcoin, Etherum, or cash), multi-asset portfolios (combining stocks, bonds, and crypto), as well as customised crypto portfolio and strategies. It even offers crypto portfolio custody and management services, as well as secured staking portfolios.

Going forward, Halogen Capital is set to launch another digital asset fund called the Halogen Shariah Ethereum Fund, complementing the Halogen Shariah Bitcoin Fund. As the name suggests, it will provide exposure to physical spot Ether, the second most popular digital coin in the world.

Halogen Capital was founded by Jirnexu co-founders, Hann Liew and Lucas Ooi, while its other founder, Ng Moon Ho, and Chief Technology Officer, Yahia Sweid, are also Jirnexu alumni.

(Source: Halogen Capital)

0 0 votes

Article Rating

Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

See all articles