IVO Portfolio Returns 108 Percent in 2019 – Profitable Tool for Investments in Blockchain as an Asset Class
The IVO bond has outperformed Bitcoin, the CCi30, and almost any traditional index over the past six months. The reasons are a bullish blockchain market and IVO’s active portfolio management strategies.
2019 has been a great year for blockchain investors so far. After markets were bearish throughout almost all of 2018, the tide has turned. Those who survived the last year are now reaping the fruits of their perseverance.
Positive market environment and active portfolio management enable above-market returns
Bitcoin is up 127 percent year-to-date and has outperformed almost any other global asset this year. It rose more than 60 percent compared to late April – the highest monthly return since 2017. After four consecutive months of outstanding returns, Delphi Digital labeled Bitcoin the “King of the Asset Class Hill.”
Other digital currencies are performing well, too. The CCi30, which tracks the 30 largest digital currencies by market capitalization, is up more than 80 percent since 01st January. In this market environment, fund managers can achieve outstanding returns.
INVAO’s flagship product, the IVO bond, is based on a diversified and actively managed portfolio of up to 150 blockchain assets. Over the past six months, the IVO Asset Pool has returned 108 percent and has outperformed the CCi30 by 18 percent. In absolute numbers: An investment of $100,000 in the IVO portfolio on 1st December 2018 would have grown to $208,000 on 31st of Mai 2019.
Compared with traditional investment classes such as equity, fixed income, or gold, IVO has generated even more significant alpha. An investment of $100,000 into the German DAX on 01st December 2018 would have resulted in $102,276 on 31st Mai 2019 – a difference of almost $106,000 to the IVO portfolio.
Blockchain assets improve the risk-adjusted return of traditional portfolios
Fund managers welcome the volatility of blockchain assets. Looking at Sharpe Ratios – a widely used measurement for an asset’s risk-adjusted return – Bitcoin has outperformed traditional asset classes over the past five years.
Even small blockchain allocations in a traditional 60/40 investment portfolio – meaning 60 percent stocks and 40 percent bonds – would already have significantly increased the portfolio’s risk-adjusted return. Just a 4-percent blockchain allocation would have resulted in an annual growth rate of 12 percent over the last 36 months, without significantly increasing the portfolio’s volatility or its maximum drawdown.
Thus, the advantages of including blockchain assets in a traditional portfolio mix are obvious, but a solid understanding of the market is required. INVAO, as well as other blockchain investment managers, have proven their ability to outperform the market continuously over the past months.
“There are more than 1,500 blockchain projects on the market, not all of them are reasonable investments,” says INVAO CEO Frank Wagner. “When putting together a blockchain portfolio, you need to have your eyes on the ball and continuously adjust your holdings. Our experienced fund managers screen the markets every day and select the 150 most promising investments. This way, the IVO token offers investors a straight-forward vehicle to invest in blockchain as an asset class.”