How is the FlexPortfolio a more efficient alternative than a UCIT?

News & Insights - October 14, 2021

Alex Contreras explains how our investment vehicle FlexPortfolio compares to a UCIT

While UCITs funds may be a good option for some institutional managers, they can also be expensive, challenging to launch, and burdensome to maintain in a good standing year after year. Additionally, you may not need a European Union registered UCIT to seek distribution in Latin American or offshore markets.

Let’s explore some of the main differences between FlexFunds’ FlexPortfolio Solution and UCITs:

  • The notes issued via a FlexPortfolio are tradable, making them available to brokers and private banking globally. UCITs are not always Euroclearable eligible to be traded and may not have the same distribution reach.
  • UCITs have a longer time to market; that is, the time necessary to have the investment vehicle ready is much longer than in the case of a FlexPortfolio. You can set up and launch your FlexPortfolio in about six weeks, with no maintenance or setup costs, which is a competitive advantage over a UCIT.
  • UCITs might present restrictions in the composition of their underlying assets, especially when compared with the flexibility and options that a FlexPortfolio can provide.

and,

  • UCITs are not always exchange-listed.

Check out FlexFunds’ FlexPortfolio alternative when considering a UCIT or any other investment vehicle. At FlexFunds, we always recommend comparing which one may better fit your needs and strategy.