Following earlier reports that two major U.S pension plans invested $40 Million in Morgan Creek Blockchain Opportunities Fund, the Fairfax County of the United States of Virginia have issued a clarification about the deal.
Jeff Weiler, Executive Director at Fairfax County Retirement Systems, notes that the pension plan invested $21 million into the Morgan Creek Fund after holding several rounds of meeting with the fund managers.
“Fairfax’s investment team determined that the expected returns from this investment were in line with the level of risk incurred.”
Further Details About the $21 Million Blockchain Investment
Pensioners should not worry about losing their funds to the high volatility associated with investment in the crypto market since the fund was not directly investing in Bitcoin.
The different applications of blockchain technology such as in the medical and voting systems mean there are too many profit opportunities for the fund aside from cryptocurrencies.
The Morgan Creek Digital Fund allocates eighty-five (85%) percent of its portfolio into blockchain companies while only fifteen (15%) of the basket goes directly into the crypto markets.
The two pension plans invested in the fund include Fairfax County’s Employees’ Retirement System (ERS) and the Police Officers Retirement System (PORS).
The ERS and PORS plan invested $10 million (0.3% of its total assets) and $11 million (0.8% of its total assets) respectively.
The new clarifications offered by Jeff Weiler means that Fairfax County owns 52.5% of the latest investments into Morgan Creek’s Blockchain Opportunities Fund.
As we reported earlier, Morgan Creek’s CEO Anthony Pompliano have expressed optimism that the decision of the two U.S pension plans to invest in the crypto and blockchain industry will create a cascading effect that prompts hundreds of others to join.
How soon that will happen is a question only time will answer.
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