Fairfax County Retirement Programs has launched particulars about its funding in a blockchain fund, seemingly to quell fears concerning the Virginia municipality’s two pension funds taking over publicity to cryptocurrency.
“On condition that this know-how is what has been used to create and run the cryptocurrency markets, you might be involved that these are investments in bitcoin or different digital currencies,” the retirement techniques’ government director, Jeff Weiler, wrote in an FAQ on the county’s web site earlier than occurring to clarify this was not the case.
As beforehand reported, the 2 pension funds are anchor buyers within the $40 million enterprise fund introduced this week by Morgan Creek, in what gave the impression to be the primary such bets on the sector positioned by establishments of this type.
In his FAQ, Weiler revealed the precise breakdown of Fairfax’s commitments: $10 million from the county workers’ pension fund, and $11 million from the cops’ fund.
To place these figures in perspective, nevertheless, they characterize simply zero.three % of the worker fund’s property and zero.eight % of the police officer fund’s, he famous, including:
“These investments have been intentionally sized to be a small portion of every system’s property, provided that the blockchain know-how business continues to be in its early phases.”
Furthermore, the overwhelming majority – at the very least 85 % – of the Morgan Creek Blockchain Alternatives Fund will probably be invested in blockchain know-how companies, Weiler wrote, noting: “As such, that is similar to different personal fairness investments made by Fairfax’s three retirement techniques.”
Not more than 15 % of the fund will probably be put into cryptocurrency, and thus far none of it has been, he added.
Weiler went on to explain the pension funds’ due diligence on the funding, noting that employees and board members of each funds traveled to Chapel Hill, N.C., the place Morgan Creek relies, to satisfy with the staff there. Additional, Morgan Creek made displays to each funds’ boards at their month-to-month conferences, the place the proposed investments have been mentioned at size.
“County attorneys and out of doors funding counsel spent quite a lot of time and power ironing out the main points of the funding contracts, to make sure that Fairfax County’s pursuits have been assured,” Weiler added.
His word additionally included an summary of blockchain know-how that emphasised that its potential purposes transcend cryptocurrency and embrace issues resembling id verification and voting.
Weiler concluded his word with a timeless reminder that each one investments carry some threat, however assured the general public that the pension funds had restricted their draw back, saying:
“Fairfax’s funding staff decided that the anticipated returns from this funding have been according to the extent of threat incurred. This additionally performed a giant half in how a lot was invested.”
Morgan Creek’s Anthony Pompliano picture by way of CoinDesk archives.