Webinar On Demand: More Efficient Investment Vehicles than Traditional Investment Funds

News & Insights - November 10, 2021

Discover how to create your own investment vehicle in record time and cost – efficiently with Alex Contreras, FlexFunds’ Head of Global Sales

In this webinar, Maite Fuentealba, Country Manager of FlexFunds, presents why FlexFunds’ ETPs are more efficient than traditional investment funds.

FlexFunds is a globally recognized service provider in the administration of investment vehicles (ETPs) covering liquid assets and alternative investments. FlexFunds serves financial institutions, investment advisors, hedge funds, private equity, and real estate managers.

When talking about traditional investment funds, we can say that, over time can be grouped into two main groups:

  1. Private Funds, in which the investor participates directly in a company through a subscription contract and the purchase of physical shares, for example, Cayman Funds or BVI Funds.
  2. European Regulated Funds, where there is a great variety, Luxembourg being one of the most common jurisdictions.

Both alternatives can be feasible but are not always the most suitable for some investment strategies. Traditional investment funds have in common access through manual subscriptions or contract purchases and lengthy, Know your Customer (KYC) procedures.

How are FlexFunds ETPs more efficient than traditional investment funds?

The FlexPortfolio is an unregulated investment vehicle (ETP) that securitizes assets listed within an Interactive Brokers or Bank of New York Mellon account.

With the FlexPortfolio, the Portfolio Manager designs an investment strategy and sets up a structured note or an ETP (Exchange Traded Product) with a unique ISIN code listed on the Vienna Stock Exchange and Bloomberg, allowing investors to purchase the ETP from their own brokerage account anywhere in the world.

The main advantages provided by the FlexPortfolio are:

  1. Efficient subscription through Euroclear
  2. Flexible portfolio composition
  3. Cost-efficient
  4. Trading & custody platform with available leverage
  5. Actively managed by a Portfolio Manager

As for the FlexPortfolio applications, the following stand out:

  1. Global distribution of an investment strategy
  2. Centralized managed account
  3. Fund creation alternative

A comparative analysis between the FlexPortfolio and traditional investment funds shows:

  • Traditional investment funds are not always available to brokers, while our ETPs are, allowing them to buy from their investment account easily.
  • FlexPorfolio’s time to market is approximately 6 weeks.
  • Set up and maintenance costs are less than half that of traditional investment funds.
  • The FlexPortfolio is Euroclear eligible, a feature not always present in traditional investment funds.
  • The FlexPortfolio has no restrictions on the number of investors.
  • The FlexPortfolio subscription process is straightforward, unlike investment funds, which tend to be complex.

FlexFunds is a leading provider in setting up and launching investment vehicles for asset managers, backed by internationally renowned institutions, such as Interactive Brokers, Bank of New York Mellon, Bloomberg, and Apex.

With over a decade of expertise spanning more than 250 ETPs to more than 200 clients worldwide, FlexFunds is a more efficient, agile, and flexible alternative for repackaging assets than traditional investment funds.

FlexFunds investment vehicles are characterized by:

  1. Speed & efficiency: issuances launched within 6 to 8 weeks
  2. Compliance Coverage: KYC/AML requirements covered by investors’ existing brokerage accounts, maintaining investor confidentiality
  3. Global access to capital markets.
  4. Flexible Use: multiple types of assets can be securitized under customized terms.
  5. 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.
  6. Direct Reporting: the price is calculated and distributed directly to Bloomberg, the exchange, and investors’ accounts

FlexFunds ETPs have multiple applications for:

  1. Portfolio Managers: Centralized managed account advantages.
  2. Fund Managers (Hedge Funds, Private Equity, Venture Capital: global access advantages.
  3. Alternative Asset and Real Estate Asset Managers: ease in capital raising and flexibility in underlying assets.
  4. Industrial Corporations: access to global debt investors.
  5. Family Office: ensure asset confidentiality & transferability.

At FlexFunds, the distribution and visibility of the asset securitization program are critical for transparency and global access. All structured notes have a unique ISIN code and a Bloomberg page, allowing commercialization within many banking platforms via Euroclear.

The Net Asset Value (NAV) is updated in Six Financial and distributed directly to custodians, allowing investors to view their position from their account statement.

No one is better than our clients to convey the advantages they have experienced with our solutions. Find here some recent feedback from our clients.

Client Testimonials

Angel Ugueto

AV Securities / A2 Dynamics

Broker Dealer

US Offshore-Latam

Alejandro Garza

Aztlan Equity Management

RIA

USA – Mexico