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The benefits of structured notes in financial decision making

Structured notes offer multiple advantages

Structured notes are financial instruments widely used by portfolio managers, advisors, or other executives due to the multiple advantages they offer.


Structured notes are highly transparent instruments because, at the time of their issuance, the underlying assets that shape them and the objective of the investment strategy behind them are exposed.


On the other hand, this financial instrument allows for a broad diversification since it can be composed of assets with different characteristics, such as stocks, bonds, commodities, real estate, etc. Also, structured notes can follow the behavior of a given index.

As the Corporate Finance Institute (CFI) explains, “they offer a cost-effective way to diversify by benchmarking or getting exposed to investments that were historically inaccessible.”


Each note has its respective ISIN/CUSIP code that facilitates its distribution. Investors can easily access the strategy repackaged in the structured note by purchasing the security on Euroclear through their brokerage accounts.

According to the financial institution Monex, “structured notes can allow investors to access international markets that otherwise might be out of reach.”

The five steps to issuing ETPs with FlexFunds

An ETP, which is an instrument similar to a note structured under specific criteria, can give you access to these advantages. You can issue your ETP with FlexFunds in just five steps:

Step 1: Customized study and design of the ETP

Because ETPs can be based on many assets listed on secondary and private markets, it is necessary to study each case and provide a tailor-made solution.

Step 2: Due diligence and signing of the engagement letter

After defining the product’s structure, the risk committee studies and evaluates the case. Then, progress is made with signing the engagement letter, the contract specifying the terms and conditions, and the scope of the functions to be performed by FlexFunds.

Step 3: ETP structuring and document review

During the process, it is essential to work closely with the client to guarantee the correct development of the necessary documentation that will shape the ETP. In this stage, the onboarding of the portfolio manager is carried out.

The structuring is completed once the essential documents of the investment vehicle, such as the Series Memorandum, the Constituting Instrument, and the Portfolio Management Agreement, have been drafted and reviewed.

Step 4: Issuance and listing of the ETP

At this point, your investment strategy is repackaged in an ETP. It is now necessary to proceed with its listing and generate an ISIN/CUSIP facilitating its distribution.

The securities are issued by the Irish Special Purpose Vehicle (SPV) set up for this objective and are backed by the investment strategy, which acts as collateral.

Step 5: ETP is ready for trading via Euroclear

The asset securitization process ends with the issuance and listing of the ETP. Now it is ready for distribution.

The strategy is available to investors because, as mentioned above, they only need to purchase the security via Euroclear using their brokerage accounts. This option is available through various custodians and private banking platforms.

If you want to know more about the benefits of structured notes or directly want to market one, do not hesitate to contact our team.


  • https://corporatefinanceinstitute.com/resources/capital-markets/exchange-traded-product-etp/
  • https://blog.monex.com.mx/instrumentos-financieros/que-son-las-notas-estructuradas
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Welcome to FlexFunds

We provide our services under the Global Note Programs through several entities that perform different activities. Among these entities are FlexFunds ETP LLC which acts as Calculation Agent, and FlexFunds Ltd, which acts as the Program Coordinator. Before making a decision to invest in the Global Note Programs, you should consider the following:

  1. Independent entities. FlexFunds ETP and FlexFunds Ltd. are not managers of the special purpose vehicles, collectively, responsible for the issuance of Notes under the Global Note Programs.
  2. Coordinated Activities. FlexFunds ETP and FlexFunds Ltd act as coordinators of the different entities participating in the Global Note Programs. However, each of the entities is responsible for its own duties and activities in the process.
  3. Not Broker-Dealer or Investment Adviser. Neither FlexFunds ETP nor FlexFunds Ltd. is a U.S. registered broker-dealer or an investment adviser registered with the U.S. Securities and Exchange Commission. Our entities do not raise capital for clients or the Issuers. We do not solicit any specific products, nor offer investment advice or make investment recommendations, nor do we offer tax, legal, financial advice or otherwise.

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