The fund we advise
Alongside private client mandates, Velocity Financial Brokers Limited acts as sub-advisor to a dedicated investment fund.
Advised fund
The fund below is sub-advised by Velocity Financial Brokers Limited. Details are provided for information only and are available to eligible investors on request.
Velocity Quant Fund SP
- Objective
- An income-oriented fund aiming for steady returns and regular distributions, by capturing the spread between spot and forward markets with limited directional exposure. Distributions are not guaranteed.
- Strategy
- Market-neutral cash-and-carry arbitrage: buying an asset at spot while selling the matching forward, to capture the price gap as the two converge.
- Domicile and structure
- Cayman Islands. A segregated portfolio of AIO Growth Capital Fund SPC, registered with the Cayman Islands Monetary Authority (CIMA) as a mutual fund.
- Inception
- 1 April 2024
- Role of Velocity
- Velocity Financial Brokers Limited acts as sub-advisor to the fund.
- Fund administrator
- KCT Capital Limited, DIFC, Dubai
- Auditor
- RSM Cayman Islands
- ISIN
- Class I: KYG0158P1072
Classes A and B: to be announced - Performance
- 129.2% total return, 1 April 2024 to end-July 2026
NAV US$2,292.13 per US$1,000 at launch
55.4% simple average per annum (not compounded)*
* As reported by the fund manager, net of fees. Past performance is not indicative of future results.
Fund returns since launch
Value of one fund unit (US$)
Total return, 1 April 2024 to end-July 2026
Simple average per year, not compounded (129.2% spread evenly over about 2.33 years)
NAV at end-July 2026, from US$1,000 at launch
NAV (net asset value) is the value of one fund unit after costs. Figures as reported by the fund manager, net of fees. Past performance is not indicative of future results.
Cash-and-carry arbitrage
The fund buys an asset at today’s (spot) price and, at the same time, sells a matching forward contract at a price fixed today for a future date. When the forward price is higher, the difference is the gross gain, before costs.
Because each position is hedged, a rise or fall in the asset’s price matters much less than for an outright holding: the fund aims to earn the gap between spot and forward rather than to call market direction. That gap mostly reflects the cost of carry, chiefly interest rates. Returns depend on how far the forward sits above spot, funding cost, execution quality and the careful use of leverage.
Buy spot
Buy the asset at today’s price.
Sell forward
At the same time, sell a matching forward at a price fixed today.
Hold
Keep both positions to the end date.
Convergence
At expiry the two prices meet; the gap, less costs, is the gross gain.
Key risks
Market-neutral does not mean no risk.
Execution
The buy and the sale may not both happen at the intended prices.
Funding and leverage
Borrowing costs can rise and positions may need renewing; leverage magnifies losses and price moves can trigger margin calls.
Counterparty
A liquidity provider, bank or custodian may fail to perform.
Basis
Spot and forward prices can move apart before the end date.
Liquidity
Markets may thin out, widening prices or delaying trades.
Note. This page does not constitute an offer or solicitation to invest in any fund. Fund documentation is available only to eligible investors in jurisdictions where it may lawfully be provided. The fund is offered privately to Eligible Investors only and is not offered to the public in the Cayman Islands. Investment is speculative and involves a high degree of risk, including the use of leverage, counterparty, liquidity, basis and execution risk; you may lose some or all of your investment.
** Full terms, fees and risks are set out in the Offering Memorandum and Fund Supplement, which govern.