Brainwin AI Quant & Arbitrage Fund

Why choose quant and arbitrage strategy ？

Market situation ：

In the past three years, the financial market has become extremely volatile. Factors driving the market volatility include :

US interest rate hike
Russian-Ukrainian War
Tensions in U.S.-China Relations
Inflation…

Forex(JPY/USD, EUR/USD, GBP/USD, etc.),

technology stocks (especially Chinese concept stocks, such as Alibaba, Tencent Holdings, etc.), have all fallen significantly from their highs, with a drop of up to 20%-80%.

Solution

AI quant and arbitrage investment with absolute Return

Low market correlation
Capture trends of multi market
Low volatility
AI system：Strict risk control to maximize return

Advantage of Quant and Arbitrage Strategy

Quant strategy: use data to judge the difference between price and value, and make a decision on which asset class to invest based on data analysis

Through massive data analysis, the results of the formed algorithm model can be verified
Overcome investment emotions and biases
Superior to human experience and judgment, and obtain excess returns
Manage more diversified strategies and larger capital scale

Arbitrage Strategy：The simultaneous purchase and sale of the same asset in different markets in order to profit from the differences in the asset’s listed price

No prejudgment of the market trend of each asset
Trades will only be made when arbitrage opportunities appear
Even if the market fluctuates greatly, arbitrage investment can obtain stable return with low risk

How Does AI System Conduct Trading

The Fund Contains AI Trading System with “Machine Learning”

The AI trading system has machine-learning capabilities. Through massive data and models, it can identify multi-asset trends in a timely manner and capture trading opportunities.

The AI quantitative program will automatically compare the transaction data, price, transaction, volatility index and technical indicators of each asset, and use conditional probability and value at risk (VaR) to judge whether it is necessary to adjust the trading strategy

Fund allocation is an important area of our risk management, covering the size of each transaction, and our quantitative model adopts multiple systems, and the system will determine the amount of funds invested in each model

All-weather absolute return strategy without intervention from the market and emotional judgement. Even in extremely volatile markets, the decline will be controlled within 15%, so as to achieve an annual return performance of 20% in normal conditions, 30% in optimal conditions, and 40% in excellent conditions

How Does AI System Conduct Trading:

Analyze huge volume of transactions and price data to decide which asset to invest in
Compare different market prices of invested assets
Calculate costs, including transaction costs, commissions, etc.
Calculate the potential profit from the trade Assess the risks of the target-asset and apply suitable risk management strategies
Choose the asset class with biggest profit potential and place trade order
Execute transaction

Introduction to AI System Trading Strategies

Trend Following Strategy:

Through our use of research and calculations to convert complex behavioral patterns into numerical values, we equip the system with computing power that enables us to form the probability of a specific outcome based on the data models
Trend following strategy：one of our straightforward and direct strategies that can identify market volatility when it starts and when it ends
Example
Monitor the trading behavior and emotions of traders of large financial institutions during trading and whether they buy or sell a certain stock in large quantities. At the same time, the system will also point out when fluctuations or new trends appear

Data Strategy “Price Action”

An example of a simple quantitative strategy using a data strategy: Price Action
Our quantitative traders use multiple different data sources to to build different models at the same time, so that they can discover profit opportunities through better probability, so that it is more likely to identify profit opportunities
We use data mining and create our automated system, which is modeled in conditional probability and value-at-risk (VaR)
Example
Our system will analyze the historical data of USD/JPY in the past 10 years (long-term), and focus more on and analyze the medium-term historical data of the past 3 years, and then dig deeper into the results of the historical data of the past 3 months in the quantitative model. Make relevant allocation weights and judgments
If our model finds that the pattern caused movement 95% of the time in the past, our model predicts a 95% chance of a similar pattern in the future. Also, if our system model detects a trend, for example, the index has a high probability of moving up at 10 am, then we use that information to open a position and make a profit

Risk Control of Stop Profit & Stop Loss

Differs from the actual performance of many peer Quant Funds
Our AI quantitative model can keenly track and capture asset trends
Transactions are allocated to the world's top 5 currencies and gold, and portfolios with rising and falling trends are completed
Strict risk control, judge and set profit and loss points
The profit stop point will be adjusted continuously according to the actual situation: when the system judges that the position can continue to be profitable, it will not close the position until it finds the best position. The stop loss point is set at no more than 0.2%-1% of the investment amount

How to manage risk ?

The fund will avoid trading when the market is extremely volatile or when the system acts abnormally slow;
The AI trading system undertakes each trade to ensure the operations could match model assumptions and meet the target return;
The investment manager will evaluate the AI system’s trading strategies comprehensively before making investment decisions
We seek and adhere to investment and trading strategies consistent with prudent risk management to achieve absolute risk-adjusted returns.

Fund Details

Multi-Asset Allocation

Adjust asset allocation based on the market risk and return
Control the maximum exposure of each as set class with strict risk management measures
Dynamically combine the situation in recent months, allocate the transaction to the world’s five major currencies and gold, and finally complete a portfolio with a rising and falling trend
Invest in 5-8 asset classes (including stocks, commodity and forex such as XAU, NZD, EUR, AUD, JPY, GBP etc.)

Performance

Brainwin AI Portfolio is well diversified with investment in commodities and foreign exchange. The portfolio of Gold and 5 currencies being invested in the past 3 years have achieved 85.58% (Jan 2020-Dec 2022)

Brainwin AI Portfolio – Real Performance (After fees)**

85.58% (Jan. 2020 – Dec. 2022)

**The actual performance is calculated by the investment portfolio run by the multi-asset quantitative arbitrage team with the same strategy, and the relevant content and information are true. The data is generated by different exchanges, management fees and performance fees have been subtracted, professional fees and other related fees incurred by the fund are not included, so its actual correctness cannot be guaranteed.

AI Portfolio “Each Asset” Performance Summary

Comparison with “Similar Category Fund”

*Jan. 2020 to Dec. 2022

Comparison with “Morningstar 5-Star Global Dividend Fund”

*Jan. 2020 to Dec. 2022

Comparison with SSEC and HSI

*Jan. 2020 to Dec. 2022

Each Asset Performance (EUR）

*Jan. 2020 to Dec. 2022

Each Asset Performance (JPY）

*Jan. 2020 to Dec. 2022

Each Asset Performance (AUD)

*Jan. 2020 to Dec. 2022

Each Asset Performance (GBP)

*Jan. 2020 to Dec. 2022

Each Asset Performance (NZD)

*Jan. 2020 to Dec. 2022

Fund Structure

Fund Facts

Investment Objectives	The Fund’s primary investment objective is to achieve low volatility and high absolute return with our diversified quantitative and arbitrage trading strategies. The fund operates through the AI trading system that automatically captures investment opportunities in stocks/index, commodities, foreign exchange, futures and derivatives on global exchanges 24 hours a day.
Fund Managemen	Brainwin Fund Management SPC (Company Registration No.: 353060)
Fund Investment Manager	Brainwin Investment Management Company Limited
Bank	DBS Bank (Hong Kong)
Trading Currency	USD
Fund Size	USD 20 Million (Initial size)
Dividend	Dividend payout of 8% p.a., will be paid out quarterly if target return is achieved
Subscription Fee	Not more than 3% of subscription amount
Management Fee	Class A: 2% per annum Class I: 1.5% per annum
Performance Fee	Performance fee will be levied 0%-30% on quarterly basis, the details as follow; For Class A Shares, – the return ≤ 8%, no performance fee; – the return > 8% – ≤25%, 20% performance fee ( will be levied for the part exceeding 8% and above) – the return > 25%, 30% performance fee ( will be levied for the part exceeding 8% and above) For Class I Shares, – the return ≤ 8%, no performance fee; – the return > 8%, 15% performance fee ( will be levied for the part exceeding 8% and above)
Lock – up Period	6 months
Subscription & Redemption Frequency	Monthly
Initial Subscription Day	The initial day that shares of a particular Class are issued at the close of the relevant offering period.
Additional Subscription Day	On the first Business Day of each month /or such other day or days as the Directors may determine.
Minimum Subscription	US$250,000 in the case of Class A Shares and US$1,000,000 in the case of Class I Shares
Redemption Day	Monthly on the first Business Day of each calendar month, with the first such Redemption Day occurring on the first Business Day of the first calendar month following 6 months of the purchase of the relevant Participating Shares (the “Lock-up Period).
Minimum Redemption	US$100,000 in the case of Class A Shares and US$100,000 in the case of Class I Shares

Double Protection

Our fund is safe and secure with double protection

1) Regulated by CIMA

The Fund is registered and established in Cayman and is Regulated by the Cayman Islands Monetary Authority.

Company Registration No.: 353060

2.) Ensure funds and tradings safety

Ensure funds and tradings safety
We only conduct multi-asset investment and trading in the world’s most scalable exchanges, brokerages and banks to ensure the safety of fund’s funding and operations

Brainwin AI fund net value

US$ 0

Class A

US$ 0

Class I

AI Fund net value

Date	Class A net value	Class I net value
2023
2022
2021