Targets

Target 1: Cash-like volatility (Target <0.5% )

Target 2: Yield above inflation (Target +0.5% above CPI )

Our Asset-Backed Yield (ABY) Advantage

hopeGBP blends debt based liquidity with asset based instruments to increase the underlying security and resilience of the fund. This strategy adds uncorrelated diversification with minimal increase in volatility, enabling us to beat interest rate benchmarks more consistently across all market conditions.

Traditional Money Market

                100%
Debt Only
100%
Debt Yield
0%
Asset Yield
hopeGBP

                85 / 15
Blended
85%
Debt Yield
15%
Asset Yield

Asset-Backed Yield (ABY) Calculator

Companies that have built up significant asset treasuries often issue a small percentage of those assets as a yield to raise growth capital.

These instruments effectively "strip out" the volatility of the underlying assets they hold, offering investors an income stream in return.

Issuers of Asset-Backed Yield instruments provide a "less risk, less reward" alternative to direct asset ownership, and remove an investors need to buy or sell the underlying assets themselves to generate cashflow, revenue or profit.

Assessing the sustainability of the yield is essential. A key metric is the "runway", which is how many years a company can continue to fund dividend payments based on future valuations of its asset treasury.

Another key metric is the breakeven Annual Recurring Revenue (ARR), which is the Compound Annual Growth Rate (CAGR) at which the issuer can make the yield payments indefinitely. The current breakeven ARR for the hope GBP portfolio requires the assets to grow at a CAGR of —%.

TOTAL YEARS OF ASSET-BACKED YIELD COVERAGE

Cash coverage years

Asset coverage years

Asset-backed Yield %

Asset CAGR % (5 years)

Use our calculator to stress-test the combined Years of Yield Coverage for all the Asset Backed Yield (ABY) products used in hope GBP:

Asset CAGR % (5 years) - assess the impact of 5 years of a fixed asset price growth/decline (CAGR) on Years of Yield Coverage

Asset-backed Yield % - assess the impact of variable rate dividend changes to the Years of Yield Coverage

∞ - To make payment obligations on the Asset Backed Yield (ABY) products included in hope GBP forever, a CAGR of just 1.82% is required. (Formula = Annual Interest Obligations ÷ Current Asset Market Value)

Core Inputs

BTC price ($)

Asset-backed Yield %

Asset CAGR % (5 years)

Advanced Inputs

BTC held (coins)

Cash reserves ($B)

STRC $B

Annual yield override ($B, optional)

Net-of-Debt Scenario + Convertibles (Option 2)

Option 2 logic: refinance debt at $8,000 BTC first; only residual shortfall draws from reserves.

Total debt ($B)

Convertible capacity ($B)

Refinance BTC floor ($)

Metric	Value
Debt coverage at floor via BTC value ($B)	-
Residual debt shortfall after floor ($B)	-
Residual after convertibles ($B)	-
Reserve draw required ($B)	-
Net cash reserves post draw ($B)	-
Net-of-debt combined coverage years	-

Year-by-Year Coverage Breakdown

Each year assumes the same annual yield obligation. Cash is used first; any shortfall is funded by selling BTC at that year’s projected price. Coverage remaining is from end-of-year resources.

Year	BTC price ($)	Yield obligation ($B)	Cash start ($B)	Cash used ($B)	Cash end ($B)	BTC start (coins)	BTC sold (coins)	BTC end (coins)	BTC value end ($B)	Total resources end ($B)	Coverage remaining (yrs)

∞ = —% CAGR

To make the monthly payment obligations forever, the asset-backed instruments included in hope GBP need a CAGR of just —%.

To put it another way, a company that has £100 in assets, owing £— in total payments per year, only needs a —% growth in asset value to be able to make the payments indefinitely. Anything above —% enables the company to perpetually grow its balance sheet.

For the last 50 years, the global money supply has increased by 6.7% per year.

Formula = Annual Interest Obligations ÷ Current Asset Market Value

Investment Philosophy

Traditional money market funds are built for capital preservation, but almost exclusively invest in unsecured short-term debt and bank deposits. This means yields move in near-perfect correlation to interest rates, not inflation. We believe interest rates are not the right benchmark for measuring capital preservation, and they are incompatible with a world of exponential productivity growth and a money supply increasing over 6% a year.

We believe that:

Overnight rates like SONIA are not the best performance indicator for money market funds and should not be the sole benchmark. Interest rates are a crude metric, heavily influenced by short term factors like policy and liquidity. Inflation (CPI) and money supply growth are better metrics for measuring capital preservation.
By being a pure money market fund and by using interest rates as your benchmark (which also control the cost of debt and savings returns) you limit the instruments you can hold in the portfolio, capping yields. Traditional money market portfolios are unable to capture the value held in assets growing from exponential productivity.
A debt only portfolio creates a lack of yield diversification, and an overreliance on interest rates. It also creates a lack of resilience across market conditions. Traditional money market funds, with debt only allocations, and interest rates as its benchmark, are unable to consistently beat inflation - therefore not preserving capital as intended.
Assets can provide more resilient collateral than debt, and arguably reflect the productivity and growth of an economy, plus the effects of money supply growth, better than interest rates.
Adding ultra-low volatility, Asset-Backed Yield instruments to a cash-like portfolio can deliver uncorrelated diversification without any meaningful increase in volatility.
Uncorrelated diversification from Asset-Backed Yields increases a money market fund's performance and resilience across market conditions.

hope GBPcombines the stability, liquidity and accessibility of a traditional money market fund with ultra-low volatility, high-yield Asset-Backed Yield (ABY) instruments. ABY instruments add resilience and uncorrelated diversification. We target a real return of +0.5% above CPI with cash-like volatility <0.5%.

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