In 2017, the total value of the asset management industry worldwide was estimated at almost 80 trillion US dollars. According to EFAMA, in the same year assets managed in Europe reached a record high of 25.2 trillion euros. For decades, professional trust management has been in high demand: skilled investment specialists helped investors competently manage their assets, expand portfolios and get profit, establishing a link between the investor’s capital and the companies in need of funds.
However, numerous sources, including Forbes and Boston Consulting Group, have lately been reporting that the industry is shrinking. Passive strategies are on the rise, the inflow of new capital has decreased, and the share of low growth, low return investments like real estate has increased. Today, many investors show mistrust for brokers and asset managers and therefore aim to minimize risks. Their concern is understandable: the conventional asset management system has earned a somewhat bad reputation due to the untrustworthiness of some market participants, as well as to the lack of a reliable technological base.
One of the main problems of the traditional system of trust management is its non-transparency. As a rule, little to none information is available about the asset manager and his trading history. Investors have no instruments to carry out due diligence; they cannot control their funds or even know what happened to them between the point in time when the investment was made and the end of the reporting period. The data could be traded or lost, and, technically, the trading history could be falsified. As a result of inefficient strategies, many people lost their investments, which led to an increase in regulation.
Asset management, decentralized
Over the last couple of years, blockchain has entered virtually every field. Its main features – immutability and anonymity – provided a novel mix of privacy and openness that revolutionized many industries, primarily the financial sector. Blockchain proved to be a perfect instrument for working with any assets. Within a decentralized platform, all transactions can be done automatically with the help of smart contracts. There is no need for intermediaries and no risk of data manipulation; no one can use the system to their advantage. All the above makes distributed ledger technology the perfect choice for solving current problems of asset management industry.
Genesis Vision is the first blockchain-based platform that combines the latest distributed ledger-based technologies with the asset management – to create an open, highly functional, transparent system where decentralization contributes to asset security and information reliability. The platform was designed for the mutual benefit of all members, offering diverse investment options for the investors, and the opportunity to earn on their skills for the managers. There are two types of investment products the platform is currently offering: investment programs and GV funds.
Genesis Vision investment mechanism
Investment programs are created by the manager, the profit comes from his trading activities. GV funds, on the other hand, are portfolios of assets chosen by the manager, where the profit comes from the organic growth of the assets. Investing in GV funds is less risky, but investment programs can be more profitable. At the time being, only crypto assets are available for trading, but in the near future, Genesis Vision managers will be able to trade any assets (bonds, metals, shares, etc) on various markets.
There are three types of fees for each product: an entry, success and platform fee for investment programs, and an entry, exit and platform fee for GV Funds. The platform fee will be disabled until January of 2019; after that, it will be set at 0.5% of every investment. This fee is the only source of profit for Genesis Vision, so the developers are directly interested in the success of the investors. The rest of the fees are set by the manager.
Genesis Vision developers have implemented transparent trading histories so the investor could choose the best manager and the best program according to his needs and requirements, or distinguish a trader with a risky strategy. First, IPFS technology efficiently works with large volumes of data for transparency and seamless end-to-end reporting. The investors can use it to check the list of programs and full trading history for any manager within the platform through an easy procedure. Second, there are three ratios that help assess the possible risks: Sharpe to measure the ratio of excess return to the risk, Sortino to determine how risky the manager’s strategy is, and Calmar ratio which shows the investment program’s performance in relation to its risks.
GVT is a universal token which is used for both investing and profit distribution within the Genesis Vision platform. When the investment is made, the tokens are converted into the program’s currency, and at the point where the investor withdraws his profit, it is converted back to GVT.
To learn more about Genesis Vision platform or join the ranks of its users please visit the official website at https://genesis.vision