Product - Growth Yield Token
Executive Summary¶
The Growth Yield Token is an ERC-20 issued in partnership with AXC Labs. The asset is intended to track the value of the GROW Heritage Fund, a Fund-of-Hedge-Funds consisting of some of the most well-known asset managers across the globe. The Growth Yield Token has the following strengths:
Accessibility: Users can gain exposure to many of the world’s most sought-after hedge funds, assets that would otherwise be inaccessible to most.
Underlying Product: The GROW Heritage Fund’s portfolio has achieved above-benchmark results in regards to both base and risk-adjusted returns over the last six years when considering backdated performance.
DeFi Composability: The product is intended to be integrated with multiple DeFi protocols, promoting features like enhanced secondary liquidity.
Issuer Overview¶
| Company | RWAfi DAO LLC |
|---|---|
| Domicile | Marshall Islands |
| Year of Incorporation | 2025 |
| Area of Focus | Illiquid Product Tokenization |
| Key Services Partner | AXC |
| Key Services Partner Domicile | Hong Kong |
Key Terms of Underlying¶
| Strategy | Tokenized Fund of Hedge Funds |
| Product | Growth Yield Token |
| Underlying Fund | GROW Heritage Fund |
| Underlying Fund Manager | GROW Asset Management |
| Est. Underlying Yield | 10-15% |
| Underlying Fund Inception Date | 2024 |
| Underlying Fund AUM | $1.4B |
| Underlying Fund Redemption Period | Quarterly |
| Underlying Fund Custodian | Gofintech Trust Limited |
| Token Investor Type | Qualified |
Issuer Description¶
AXC Labs is a digital wealth and infrastructure service provider focused on facilitating the tokenization of institutional-grade alternative assets such as hedge funds and private credit investments. The business was established in 2024 by a founding team with backgrounds in institutional asset management, blockchain infrastructure, and quantitative research.
The technical/legal issuer of the token is a separate non-profit LLC entity that works in partnership with AXC. This structure is described in detail later in this report.
Product Description¶
The Growth Yield Token is an ERC-20 designed to track the value of the GROW Heritage Fund - a Fund of Hedge Funds offering exposure to a diversified portfolio of top-performing global hedge funds. It aims to provide liquid RWA access, allowing tokenholders to participate in hedge fund performance while maintaining self-custody in an on-chain wallet. The fund features dynamic asset allocation, verified real-time disclosures, historical returns of around 13.2% annualized (if backdated since 2019), liquidity frameworks, and institutional-grade oversight.
GROW Heritage Fund¶
The GROW Heritage Fund is a multi-asset investment fund managed by GROW Asset Management HK Limited, a branch of GROW Investment Group. The asset management branch of GROW was established in 2021 with headquarters in Shanghai and offices in Hong Kong and Singapore. The Heritage Fund specializes in allocating capital to top-tier global hedge funds, leveraging deep alternative investment expertise to deliver competitive returns to its investors. From 2019 to 2025 (backdated), the underlying portfolio would have achieved an average annual return of 13.2% with a 2.6 Sharpe Ratio post-fees.
Fund Management and Team¶
GROW Asset Management HK Limited is led by William Ma, a founding partner and global CIO known as one of Asia’s first-generation Fund-of-Hedge Funds managers with over 20 years of industry experience.
Ma previously served as CIO at multiple large asset managers, overseeing tens of billions of dollars in AUM. He was also a Founding Partner of Penjing Asset Management, which managed over $2B.
The team uses extensive industry connections to provide investors access to sought-after hedge funds such as TCI, Citadel, Point72, Brevan Howard, and more.
Investment Strategy¶
The GROW Heritage Fund is a Fund of Hedge Funds that invests across multiple underlying fund strategies. All underlying funds seek low market-correlation and are widely considered to be top global Hedge Funds. The Heritage Fund focuses on generating sustainable mid to long-term returns and achieves diversification by investing across global markets as well as across underlying strategies.
Asset Allocation
| Asset | Weight | Avg. Return (5Y) | Avg. Volatility (5Y) | Sharpe Ratio |
|---|---|---|---|---|
| Top Global Sovereign Fund Portfolio | 52.98% | |||
| Citadel | 13.25% | 20.80% | 7.40% | 2.50 |
| Capula Global Relative Value | 10.60% | 6.80% | 1.70% | 2.40 |
| Capula Multi-Strategy | 4.77% | 10.00% | 3.10% | 2.10 |
| Brevan Howard Master Fund | 6.89% | 3.70% | 6.70% | 0.10 |
| Point72 | 8.48% | 13.40% | 6.80% | 1.60 |
| Arrowpoint | 5.83% | - | - | - |
| Caxton | 3.18% | 17.50% | 14.10% | 1.00 |
| The Children’s Investment Fund Management | 45.92% | 15.55% | 19.58% | 0.72 |
| Cash | 1.10% |
As shown above, the portfolio achieves strategy diversification with a heavy skew towards L/S Equity. Around half of the fund’s portfolio is allocated to the “Top Global Sovereign Fund Portfolio” sub-fund, which holds most of the prestigious hedge funds in the group. The other half is allocated to TCI, with only ~1% of assets remaining in cash, showing efficient placement of capital.
Historical Performance¶
The GROW Heritage Fund’s underlying portfolio has achieved an annualized return of 13.2%, net of fees, on 4.10% annual volatility since 2019 - boasting a Sharpe Ratio of 2.6. Please note that the GROW Heritage Fund itself has only been operating since 2024 under its current composition, so the performance discussed is mostly hypothetical.
Top Global Sovereign Fund Performance by Year (~53% of Portfolio)
| Year | Return |
|---|---|
| HY 2025 | 3.3% |
| 2024 | 9.9% |
| 2023 | 7.3% |
| 2022 | 21.0% |
| 2021 | 10.2% |
| 2020 | 21.9% |
| 2019 | 13.2% |
Fund Terms¶
The GROW Heritage Fund has relatively standard terms. These are detailed below:
| Fund Inception Date | May 2024 |
|---|---|
| Initial Minimum Subscription | $500,000 |
| Additional Minimum Subscriptions | $100,000 |
| Fund Admin | WE Services Limited |
| Lock-Up Period | Soft Lock (2 years) |
| Redemptions | Quarterly with 60-days notice after lock-up period |
| Subscription Fee | 1.5% |
| Management Fee | 1.5% |
| Performance Fee | 15% |
| Redemption Fee During Lock-Up Period | 2-3% |
Please note that the fees listed above are in regards to the off-chain Fund-of-Hedge Funds and differ from the fees that will be imposed on tokenholders. The relevant fees for tokenholders are discussed in the following section.
Growth Yield Token¶
The Growth Yield Token is an ERC-20 issued by RWAfi DAO LLC in partnership with AXC. The token is intended to track the price of the underlying GROW Heritage Fund via the DAO’s ownership of fund shares. The legal structuring and details on key parties is addressed in the following section. It is worth noting that while the DAO LLC owns underlying fund shares, the Growth Yield Token does not represent actual ownership in the GROW Heritage Fund, and simply aims to track the fund’s performance.
Key Token Information¶
Available on BSC, Ethereum, and Plume Blockchains
Monthly Price/NAV Updates with Weekly Projections
Minimum $10 Investment
Investment Windows Open Periodically
Quarterly Redemptions (for qualified investors)
Accrued Yield Structure (value of token accrues with underlying distributions)
Features of Growth Yield Token¶
Permissionless self-custody for holders, allowing direct control over tokens without intermediaries.
Enhanced liquidity via an LP framework, making it easier for investors to enter or exit positions (although this is still in development).
An initial LP will be tested on Uniswap upon the launch of the token.
Best-efforts access to quarterly redemptions for qualified investors.
Real-time portfolio disclosure and attestation, ensuring transparency with verified RWA data accessible through an open-ledger system.
Institutional-grade asset origination and risk management, with regulatory oversight and operational controls provided by licensed third-party managers and brokerages.
On-chain composability, enabling the token to interact with DeFi and derivative markets for additional investment strategies or financial products.
Fee Structure¶
The fee structure for the Growth Yield Token is similar to that of the underlying Fund-of-Hedge Funds. The main differences are in redemption fees, an additional token management fee for AXC, and a potential waiver of the subscription fee (although this is not yet fully confirmed).
| Fee | Scenario 1 (<2-Year Holding Period) | Scenario 2 (>2-Year Holding Period) |
|---|---|---|
| Subscription Fee (Likely) | 0% | 0% |
| Management Fee | 1.5% | 1.5% |
| Performance Fee* | 15% | 15% |
| Token Management Fee | 1% | 1% |
| Redemption Fee | 2% | 1% |
*The performance fee has no hurdle rate and operates on a high-water mark system, as is the case with the underlying fund.