- FlexFunds enables the design and launch of agile, cost-efficient investment vehicles offering liquidity, diversification, and international reach.
- Strategic allocation can define more than 75% of a portfolio’s performance.
- Explore how FlexFunds can help you issue your investment vehicle for multiple asset classes through a FlexPortfolio, FlexFeeder, or Flex Private Program, depending on your needs. For more information, contact us.
In the midst of a volatile financial environment, adopting a robust asset allocation strategy and integrating tools such as securitization can make all the difference.
FlexFunds outlines the pillars of strategic asset allocation and how its solutions provide an effective response to today’s market challenges.
Strategic asset allocation is one of the key processes in building any investment portfolio, helping to withstand market volatility through diversification.
This process aims to distribute capital across different types of assets, isolating risks amid a challenging environment such as today’s.
Its main objective is to optimize risk-return over time, even in the face of economic cycle changes, explains FlexFunds, a leading provider for asset managers in the design and issuance of investment vehicles (ETPs).
In environments such as the current one, strategies require greater sophistication, diversification, and tools that enable adaptability without sacrificing efficiency.
Within the framework of strategic asset allocation, investors can rely on instruments ranging from stocks and bonds to alternative assets.
In highly volatile environments, designing and launching efficient investment vehicles allows uncertainty to be turned into concrete capitalization opportunities.
BNP Paribas Wealth Management¹ considers that “a typical strategic asset allocation for a rather balanced investor could be: 40% cash & bonds, 30% shares, 15% real estate and 15% alternative investments.”
For example, an instrument such as asset securitization “allows investors to diversify their risk across a broad portfolio instead of a single issuer,” according to IDB Invest².
In practical terms, securitization is a process by which a pool of assets is grouped and transformed into securities that can be sold to investors in the financial market.
Among the possible assets to be securitized are mortgages, loans, rents, or future cash flows.
Securitization allows investors to access diversified asset classes, with structures tailored to different risk and return profiles.
According to IDB Invest, “securitization structures are highly adaptable to features of the underlying assets and the specific needs of investors with different risk-reward appetites.”
FlexFunds designs and launches customized investment vehicles through a securitization program that converts asset portfolios into globally listed products, known as ETPs or “Flex.”
FlexFunds enables managers and institutions to issue listed investment vehicles (ETPs) that integrate liquid or alternative assets with global reach and efficiency.
These instruments allow managers to structure their strategies in a liquid, scalable, and globally accessible format, thus facilitating capital raising and access for non-U.S. investors.
The created ETPs can be backed by a wide range of assets — from real estate to fund shares — and offer advantages such as low cost, transparency, operational efficiency, and even the ability to issue from smaller portfolios.
The issuance process for these customized vehicles can be completed within 6 to 8 weeks, providing not only flexibility with asset types, but also personalization according to each client’s needs.
To meet these needs, FlexFunds offers three key solutions:
- FlexPortfolio: Enables advisors to launch investment strategies in a listed, globally accessible vehicle without operational complications.
- FlexFeeder: Repackages existing funds into internationally tradable securities, expanding their reach.
- Flex Private Program: Provides a tailored solution for large clients who need to issue and manage their own investment vehicles.
Explore how FlexFunds can help you design your own global investment vehicle with FlexPortfolio, FlexFeeder, and Flex Private Program.
A global environment marked by uncertainty
The fiscal and trade policies recently adopted by the U.S. administration have introduced new sources of market volatility.
Markets have responded with high uncertainty to events such as the U.S.-China trade war, which has strengthened so-called safe-haven assets like gold and silver.
This event has been compounded by other factors that add further uncertainty to the environment, such as President Donald Trump’s recent tax project, called One Big Beautiful Bill.
Markets remain doubtful that the United States can reduce its pronounced fiscal deficit, estimated at 7.3% in 2024, according to International Monetary Fund (IMF) figures cited by El País³.
Added to this are the doubts surrounding markets regarding the future of Federal Reserve interest rates, which will be a key global gauge in the fight against inflation.
Uncertainty is reflected in the fact that the U.S. Dollar Index (DXY) recorded its worst semester since 1973 in the period ending in June.
Strategic asset allocation is the main determinant of sustained performance in investment portfolios.
So far this year, the index has fallen by around 10%, reflecting the dollar’s global weakness against strong currencies such as the euro or the pound, as well as against emerging ones.
In this context, strategic asset allocation plays a key role, as it is considered “an important source of portfolio performance stabilization in the long run,” according to BNP Paribas Wealth Management.
In fact, strategic asset allocation explains more than 75% of portfolio returns, making it essential to align investments with objectives and preserve wealth, according to a study cited by that source.
Financial institution BBVA⁴ explains that portfolio diversification is not only based on asset class, but also on criteria such as geographic region, economic sector, or the size of issuing companies.
This allows risk to be spread across different parts of the world, specific industries, and companies of varying capitalization levels.
Furthermore, it considers that defining an investment strategy requires identifying the expected return and the capital needed to achieve a specific goal, the timeframe available to reach it, and the level of risk the investor is willing to assume.
Diversification in portfolios
International diversification is a key response to the fiscal and trade disruptions facing the world’s largest economy, with their consequent global effects.
The current situation demands a reconfiguration of how capital is structured and distributed.
A modern strategic allocation must combine liquidity, global diversification, tax efficiency, and access to alternative assets.
The use of investment vehicles, backed by robust securitization processes and reliable infrastructure such as that of FlexFunds, becomes a competitive advantage.
In times of high uncertainty, portfolio architecture is as important as the assets that compose it.
If uncertainty does not dissipate in the short term, managers must anticipate scenarios and structure portfolios capable of withstanding external shocks.
Collaboration with specialized partners like FlexFunds allows allocation strategies to be translated into concrete and efficient operational structures.
That combination of strategic vision and disciplined execution makes the difference in environments such as today’s.
Within this framework, securitization not only becomes a tool for portfolio diversification but also a strategic component in designing resilient portfolios.
Moreover, it expands the investment universe, allowing managers to include alternative assets in their allocation strategy.
With FlexFunds, you can design and issue efficient and customized investment vehicles that turn that strategy into global market-ready solutions. Learn here why you should choose us.
Sources:
- 1https://wealthmanagement.bnpparibas/en/insights/news/strategic-asset-allocation-art-of-diversification.html
- 2https://idbinvest.org/en/blog/development-impact/securitization-tool-issuers-reallocate-credit-risk-and-widen-investor-base
- 3https://elpais.com/economia/2025-04-23/el-fmi-cree-que-la-recaudacion-por-los-aranceles-permitira-a-estados-unidos-reducir-el-deficit-publico.html
- 4https://www.bbvaassetmanagement.com/es/actualidad/que-aporta-la-asignacion-de-activos-a-tu-inversion/
