Notification of Changes to IMs - August 2021

MHC Digital Finance -
August 27, 2021

The Trustee of the Fund, MHC Digital Fund Services Pty Limited (the Trustee), has made changes to our Information Memoranda (IMs) for the Digital Asset Fund and the Market Neutral Fund during August of 2021. The changes address our process in Unit Price calculation and unit issuance.

Currently our unit issuance process, as per the two funds’ IMs, requires us to calculate the Unit Price as at closing on the final day of the month. We then issue units as soon as possible and begin our exchange process. This is not a problem when the final day of the month falls on most weekdays, but should it be a Friday, Saturday or public holiday, an issue arises as our exchange process from fiat to crypto relies heavily on traditional banking procedures. In some cases, we can see days pass before the banks are able to process our transfers to begin our exchange process. With the cryptocurrency markets continuing to trade during this time, we can see fluctuations in NAV between time of striking the Unit Price and the time at which new funds are allocated as cryptocurrency in our portfolio.

As such, going forward the Trustee will calculate the Funds’ NAVs and issue units on the first business day of each month as opposed to the final calendar day of the previous month. This change ensures minimum time spent exchanging funds into crypto, and therefore minimum time between the official unit price at issuance and NAV per unit at time of allocation in cryptocurrency. Thereby, minimising any discrepancies between those price points.

These changes have been reflected across the following sections:

·            5.5

·          5.6

·          6.3

·          7.1

·          Non-Exhaustive Summary of the Principle Terms

Please feel free to contact us should you have any questions regarding the Fund, your investment or our changes to the IMs.

Kind regards,

MHC Digital Finance

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