Melons, Tech & Hedgies

If you are an asset manager you need to read this since.  Here is a “recipe” for the future of asset management on blockchain. Trust us, it’s a juicy ‘recipe” by Mona and her Melon. No comment here, way to mature.

The founder of Melonport AG, a Swiss company building ‘Melon’, an open-source blockchain platform can, basically, transform your management business. With multiple layers of old technology, coupled with extremely high fixed and variable costs, it’s kind of hard to make money AND beat benchmarks in today’s business climate. How about a “recipe” to fix that and help both clients and yourself. This is a great read. (Bill Taylor/CEO)

“It is going to be a juicy one, I promise! I will encourage you straight away to contribute with your comments and questions. The idea is to co-create a recipe that will lead to the best possible future for asset management.

Rather than giving you the full background to the problem, I will direct you to this brilliant talk “The Uber Moment for Asset Management” by Dr. Bolko Hohaus in which he explains in detail how outdated, inefficient and slow the infrastructure is. There are layers and layers of legacy technology. Coupled with extremely high fixed and variable costs, and a very difficult market at the moment, it is no wonder that even hedge funds find it tough to beat their benchmark!

Do you know that, just to break even, asset managers need to have at least $150m under their management and charge 1.52% in management fees per year? From the investor’s perspective, it means that 1.5–2% of their net return is wiped away through the costs structure.

Melon: a blockchain platform for asset managers

Let me introduce Mona El Isa, Co-founder of Melonport AG, a Swiss company building Melon — an Ethereum based software for asset management. I met her at Blockchain Expo in London last week. Mona is a very inspiring person pursuing her vision. (All I can say, it is a compelling one!) She left her job in asset management more than a year ago in order to find a solution to all the aches and pains of the industry.

Mona and I discussed how Melon, as an open-source blockchain platform, can enable fund managers to introduce more transparency into the whole system, increase their efficiency, and dramatically reduce the costs of auditing, booking, reconciliation and settlement; whereby the barriers of entry for asset managers would be much lower, and smaller investors, like you an me, would also be able to participate. (The last point was of a particular interest to me! I will tell you why later!)

Read Full Article by Dean Demellweek on Linkedin Pulse