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Why ETPs can be more efficient than traditional funds

FlexFunds, explains the advantages of ETPs

FlexFunds presents an on-demand webinar focused on why FlexFunds’ exchange-traded products (ETPs) can be more efficient than traditional investment funds.

FlexFunds is an internationally recognized service provider in the issuance and administration of ETPs covering listed assets and alternative investments. FlexFunds serves financial institutions, investment advisors, hedge funds and portfolio managers and real estate investment managers.

Traditional Investment Funds

There are two main groups of traditional investment funds:

  • Private Funds: pooled investment vehicles in which the investor participates directly in a company through a subscription contract and purchasing physical shares.
  • European Regulated Funds: vehicles regulated by various European Union institutions and available in a wide variety.

When putting together an investment strategy for clients, both alternatives may be feasible but are not always the most suitable. Traditional investment funds have in common access through manual subscriptions or contract purchases and lengthy know-your-customer (KYC) procedures.

How can FlexFunds ETPs be more efficient than traditional investment funds?

With the FlexPortfolio FlexFunds’ solutions, the portfolio manager designs an investment strategy and sets up an exchange-listed product (ETP) with a unique ISIN code listed on the Vienna Stock Exchange and Bloomberg, allowing investors to purchase it from their own brokerage accounts anywhere in the world.

The main advantages provided by the FlexPortfolio are:

  • Efficient subscription through Euroclear.
  • Flexibility portfolio composition.
  • Cost-efficient.
  • Trading & custody platform with available leverage.
  • Actively managed by a Portfolio Manager.

As for the FlexPortfolio’s applications, the following stand out:

  • Global distribution of investment strategies.
  • Centralized managed account
  • Fund creation alternative

FlexPortfolio vs. traditional investment funds

A comparative analysis between the FlexPortfolio and traditional investment funds reveals several facts to highlight, as follows:

Availability

First, traditional investment funds are not always available to brokers, while ETPs are, allowing them to buy from their investment account easily. In addition, FlexFunds ETPs are Euroclear compatible.

Speed

The FlexPortfolio’s time to market is approximately 6 to 8 weeks, which helps the portfolio manager or advisor set up your solution in less than half the time it requires to structure a conventional investment fund.

Lower costs

Set-up and maintenance costs are lower, as there is no set-up fee. The commissions are based solely on trading activity.

Accessibility

The FlexPortfolio has no restrictions on the number of investors, and it’s subscription process is very simple, contrary to investment funds that tend to be complex.

Who are FlexFunds ETPs designed for?

FlexFunds ETPs have multiple applications due to their versatility:

  • Portfolio Managers: Centralized managed account advantages.
  • Funds Managers (hedge funds, private equity, venture capital): global access advantages.
  • Alternative Asset and Real Estate Managers: ease of capital raising and flexibility in underlying assets.
  • Industrial Corporations: access to global debt investors.
  • Family Offices: ensure asset confidentiality & transferability.

Characteristics of FlexFunds’ investment vehicles

FlexFunds ETPs stand out from traditional funds due to a series of essential features:

  • Speed & Efficiency: issuance launched within 6 to 8 weeks.
  • Compliance Coverage: KYC/AML requirements are covered by investors’ existing brokerage accounts, maintaining investor confidentiality.
  • Global access to capital markets.
  • Flexible Use: multiple types of assets can be securitized under customized terms.
  • Integrated Administration: services provided by the most trusted financial and legal institutions such as Interactive Brokers, Bank of New York Mellon, and Apex, among others.
  • Direct Reporting: the price is calculated and distributed directly to Bloomberg, the exchange, and investors’ accounts

FlexPortfolio, the most efficient solution

Thanks to FlexFunds’ solutions, you can access investment vehicles that securitize multiple asset classes, liquid, and alternative.

Our differential is the coordination of a securitization program quickly and efficiently, taking care of all phases of the process from end to end providing a turnkey solution for our clients.

To learn more about our ETPs, do not hesitate to visit our FlexPortfolio section, where you will find all the information you need to start using them.

Authored by
FlexFunds

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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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