- This article explains in detail what FlexFunds does, the services it offers, and how it simplifies the process of issuing investment vehicles.
- The information is intended for fund managers, financial advisors, and investors looking to optimize their investment strategies through asset securitization.
- FlexFunds offers an asset securitization program to develop exchange-listed products (ETPs). For more information, feel free to contact our experts.
In today’s financial environment, there are multiple companies that enable the issuance of investment vehicles so that institutions, fund managers, and investors can optimize their strategies. However, not all are as complete and effective as FlexFunds.
What is FlexFunds?
FlexFunds is a service provider for asset securitization founded in 2011, with the goal of facilitating the distribution and growth of investment products.
Currently, the company has more than USD 1.5 billion in assets under service and has carried out over 500 issuances in more than 30 countries. It also has a portfolio of over 200 clients around the world.
To achieve success, FlexFunds is built on five key pillars:
- Transparency
- Team
- Innovation
- Trust and respect
- Client-focused strategy
What solutions does FlexFunds offer?
Today, FlexFunds offers three comprehensive turnkey solutions to facilitate the process of issuing investment vehicles through securitización.
FlexPortfolio
Through FlexPortfolio, FlexFunds provides simplified solutions to investment advisors and fund managers so they can create their own exchange-traded product (ETP).
The product lineup includes:
- FlexPortfolio.
- Flex Open Portfolio.
- Flex Regulated Portfolio.
- Flex Dual Portfolio.
Flex Private Program
The Flex Private Program, in turn, provides large clients with the management of an exclusive Irish SPV. Among its advantages are greater flexibility and customization.
FlexFeeder
Lastly, FlexFunds’ FlexFeeder securitizes shares of existing funds. These fund shares are pooled and distributed globally through the creation of a “Euroclearable” ETP.
How does it simplify the process of issuing investment vehicles?
The most attractive aspect of FlexFunds is that it significantly simplifies the process of issuing investment vehicles thanks to four key benefits:
Transparency
FlexFunds’ solutions are fully backed by internationally renowned service providers such as Interactive Brokers, Bank of New York, Bloomberg, Morningstar, among others.
Flexibility
As its name suggests, FlexFunds is characterized by its flexibility. Thanks to a versatile approach, the company adapts to the needs and goals of each client, offering 100% customized solutions.
Cost-efficiency
Moreover, launching a “Flex” is highly competitive in terms of cost, time, and resources. Asset securitization and the subsequent creation of an ETP is much more efficient compared to conventional alternatives.
Speed
Lastly, it’s important to note that at FlexFunds, we are fast. The issuance of our investment vehicles takes between 8 and 12 weeks.
Step-by-step: what is the asset securitization process like with FlexFunds
Fortunately, the process of issuing investment vehicles is very simple with FlexFunds. In fact, it consists of just five steps:
Etapa 1: Stage 1: Personalized analysis and ETP design
Asset securitization can involve a wide range of assets, both listed in secondary markets and private. For this reason, a detailed analysis is required to offer a solution tailored to each specific case.
At FlexFunds, we begin this process with an in-depth study and data collection to develop a personalized solution.
In collaboration with renowned international providers, we coordinate the creation and issuance of the ETP best suited to the client’s needs.
Stage 2: Due diligence and signing of the engagement letter
Once the product structure is defined, our risk committee proceeds with the evaluation and review of the case.
Subsequently, the collaboration is formalized through the signing of the engagement letter, which outlines the terms and conditions of the service, as well as the scope of the functions to be performed by FlexFunds.
Stage 3: ETP structuring and documentation review
During the design of the investment vehicle, it is essential to work closely with the client to develop the necessary documentation that will shape the exchange-traded product. This phase also includes the onboarding of the portfolio manager.
The structuring ends with the drafting and review of the essential documents of the investment vehicle, such as the series memorandum, the constituting instrument, and the portfolio management agreement.
Stage 4: Issuance and listing of the ETP
Once the asset securitization is completed, the investment strategy materializes in an ETP. At this stage, it is listed and assigned an ISIN/CUSIP code to facilitate its distribution.
It is important to note that the issuer of the securities is an Irish special purpose vehicle (SPV) created for this objective and backed by the investment strategy as collateral.
Stage 5: Preparation for trading through Euroclear
The asset securitization process concludes with the issuance and listing of the ETP, which makes it accessible for distribution through Euroclear.
Investors can easily acquire the securities via Euroclear, using their existing brokerage accounts through various custodians and private banking platforms.
The process enables a wide variety of assets to become international and more accessible, offering asset managers of all kinds opportunities to expand into international markets and grow their investor base safely and efficiently.
It is worth highlighting that at FlexFunds, we provide high-quality, customized, and cost-efficient ETPs. In addition, they come with a comprehensive service package that includes:
- Exchange listing
- Fund accounting
- Back office services
- Net asset value (NAV) calculation
- Corporate administration services
To learn more about FlexFunds and our exchange-traded products, remember you can contact our team of experts. We’ll be happy to help!
