Forsyth International | The Index Fund

The Index Fund

THE CRYPTO15 INDEX FUND

F15 PRIVATE INDEX FUND

The Forsyth International F15 Private Index Fund holds the top 15 cryptocurrencies weighted by 5-year diluted market cap and rebalanced monthly. Assets are purchased from multiple liquidity providers, held in 100% cold storage, audited and rebalanced weekly.

A professional way to invest

Own the market instead of picking winners. We're in a new era for cryptocurrency. In the several years prior to March 2017, Bitcoin was almost always over 80% of the entire market. Bitcoin has become now around 50 of total market cap while many other protocols have grown to significant market caps and developed substantial communities. The coins in the F15 Index initially will comprise between 80% and 90% of the market and are rebalanced as the market changes. Since inception owning the F15 had higher returns, lower volatility, and higher Sharpe Ratio than just owning Bitcoin. See table below:


 
Total Cap
BTC
F15
Dec-17
100.50%
39.26%
185.42%
Jan-18
-15.48%
-34.16%
-22.04%
Feb-18
-15.01%
20.01%
21.40%
Mar-18
-40.79%
-36.51%
-37.23%
Apr-18
68.12%
32.04%
90.11%
May-18
-23.57%
-19.09%
-25.87%
Jun-18
25.55%
-14.73%
-19%
Jul-18
-29.21%
-17.43%
-26.17%
Aug-18
6.43%
18.05%
50.51%
Sep-18
-23.41%
-9.92%
-38.27%
Inception to date
27.98%
-85.4%
303.55%

 

A secure way to own cryptocurrencies

Securely storing coins is imperative but it needs specified knowledge. Storing coins, yourself in a wallet is feasible for some, but you’re at risk of being hacked or phished. The Forsyth International F15 Private Index Fund uses state-of-the-art security procedures to protect your assets. The custodian puts all underlying coins in an institutional-grade 100% cold storage vault.

Smarter and simpler

For most people, it’s not feasible to spend the time needed to do thorough research on which exchanges to trust, which coins to buy, and how to allocate your portfolio. Once you buy coins you need to do additional work of storing them securely, rebalancing your portfolio regularly, staying on top of news, calculating portfolio performance, and doing complicated tax reporting. We do all of this for you: The Forsyth International F15 Private Index Fund is smarter and simpler.

THE INDEX

Purpose

The goal of the F15 Index is to represent the performance of the cryptocurrency market by tracking a basket of the fifteen of the most important coins. To protect the integrity of the index, significant robustness is applied through eligibility criteria, inflation adjustment of market capitalization, distinguishing circulating supply, the rebalancing policy, compositing of price data, data sources, and policies for rare events like hard forks. The Index will be evaluated and researched on a periodic basis.

Methodology

Selection & Weighting. Fund’s composition

The F15 Index has a policy of selecting the top 15 coins, by market capitalization. The selected coins are then held in proportion to their market capitalization.

Composite Price

A coin’s composite price is derived from the real-time price data from multiple exchanges. The individual prices are combined with two techniques:

Supply & Inflation Adjustment

Circulating supply is the best approximation of the number of coins available to public investors. It is derived by taking the total number of existing coins from the blockchain and subtracting the number of coins verifiably burned, locked, or reserved (for example, by a foundation). Public blockchain explorers are used to monitor corresponding blockchains when available. If not, our own node is run. In addition to circulating supply, the index incorporates supply inflation that is publicly known to the market. This is important because different protocols have different supply regimes (e.g. inflationary, deflationary, pre-mined). The market is aware of future supply in determining price, but it would not be captured with a market capitalization calculation that relies on only present supply. To that end, the index adds to presently circulating supply, the amount of supply expected to be added over the next 5 years.

Eligibility Criteria

Cryptocurrencies should meet the following additional criteria to be included in the index:

Data Source Selection

Data is essential to our index. It is important to cover as much market activity as possible, while not sacrificing the quality and credibility of the data we incorporate. The index committee evaluates the following criteria to determine if the index should recognize an exchange and include it as a data source:

Trade Suspension Policy

Exchanges might collectively suspend the trading of a given coin in anticipation of a hard fork or for some other reason. For the purposes of calculating the index, it will be assumed that the last composite price remains unchanged until trading resumes. If the suspension continues for more than a month or in the event of delisting from exchanges, then we will remove the coin from the index during the next rebalancing regardless of what the assumed market capitalization might have been.

Hard Fork Policy

When a hard fork occurs, the forked coin will be held in the index until the next rebalancing. This decision embodies the idea that the value of the forked coin stems from that of the original coin. Thus, the index should hold the two coins as if they were one until the next opportunity to treat them as separate. The forked coin will be removed from the index upon the next rebalancing and will have the opportunity to join again when it meets all the eligibility requirements and has a market capitalization of its own to warrant being included in the index.

Index Committee

The Index is evaluated and studied on an ongoing basis. The Index Committee regular meeting is held every quarter to fully evaluate the health of the index. In this meeting, variables such as the eligibility liquidity are benchmarked against new market conditions. Also new data sources are considered for inclusion, and old ones are considered for exclusion. Special meetings can be called when unexpected market conditions arise such as hard forks, extreme price movements, or serious issues in data availability.