Mark Carnegie and Sergei Sergienko’s digital currency plans for business in pro-crypto Singapore

And wouldn’t you know, there’s a fee for everything.“As part of this arrangement, the Manager [MHC Digital Finance] shall receive a commission payment calculated by reference to the Timex spread from time to time (currently 1.00 per cent).”That’s some related party. With a minimum investment of $50,000, is it any wonder Carnegie is so keen to coax punters to gold-pan for crypto gains. When we asked on Tuesday, a spokeswoman told us the commission was “no longer current”, “discontinued” and no commissions had been paid. When this happened though remains unclear.Irrespective, investors are slugged a 2 per cent management fee, and a 2 per cent redemption fee for any cash withdrawn in under a year, or 1 per cent if it is less than two years.And we’re not even at the real stuff yet. Carnegie’s own letter to investors declares the fund is aiming for “returns in excess of 15 per cent regardless of the market conditions”.But he will take a 20 per cent performance cut if performance is a far lower 6 per cent. Hamish Douglass must be sweating looking at how much Carnegie is creaming it.Prospective investors in Carnegie’s fund, which seeks to arbitrage pricing differentials in the crypto ecosystem rather than ride the whipsaw of the market (in either direction), are told such pricing anomalies “won’t be around forever”.“Eventually the big cap players will come in and close price gaps.”We can only hope the same can be said for fund manager fees.

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