FlexFunds Academy

Why is the FlexPortfolio a more efficient alternative than a UCIT fund?

Authored by FlexFunds
  • This article offers a tour of the benefits and features of the FlexPortfolio as a more efficient alternative than a UCIT fund.
  • If you are a fund manager or asset manager of any kind, you will want to know the qualities of the products listed on the stock exchange, also known as ETPs.
  • If you want to learn more about the investment vehicles set up by FlexFunds or how you could benefit from them, do not hesitate to contact our team of specialists.

The FlexFunds FlexPortfolio offers more benefits than a UCIT fund

Institutional managers face a series of challenges when choosing the right investment vehicle for their clients. Although UCIT funds (Undertakings for the Collective Investment of Transferable Securities) are popular, they can also be costly and complex to launch and maintain.

If your objective is to improve the distribution of your investment strategy in the Latin American and offshore markets, there are better solutions than a UCIT registered in the European Union.

In this article, we will analyze the main differences between the UCITs and the FlexFunds FlexPortfolio to help you decide which solution best suits your investment needs.

Facility of access to global investors through Euroclear

One of the main advantages of FlexFunds’ solutions listed on the Vienna Stock Exchange (ETPs) is that they are Euroclearable, which means that they are available to broker-dealers and private banks worldwide.

In contrast, UCITs are not always negotiable on Euroclear, limiting the scope of their distribution. If your objective is to reach a global base of investors, a FlexPortfolio can be a better option.

Faster time to market launch speed

The FlexPortfolio can be issued within 6 to 8 weeks, and set-up and maintenance costs may be nonexistent. In comparison, UCITs require more time to structure the investment vehicle

If you want to know more about the time to market and costs of FlexFunds’ FlexPortfolio, do not hesitate to contact our team.

Broader flexibility in the selection of underlying assets

The UCITs can present restrictions on the underlying assets they comprise, while the FlexPortfolio provides wide flexibility and various options.

This means that investment managers have greater freedom to build a portfolio that best adapts to their investment needs and strategies. FlexPortfolio may be the best option if you want more control over your portfolio.

Listed on the stock exchange

Another key difference between the FlexPortfolio and the UCITs is that the latter are not always listed on the stock exchange. The possibility of listing the FlexPortfolio can be an advantage for those investors who want greater transparency in their investments.

As explained in Fox Business, “liquidity provides peace of mind in knowing that it can cover unplanned expenses without having to assume a high-cost debt or be a forced seller of assets.”

Considering all options

At FlexFunds, we recommend comparing which solution best fits your needs and investment strategies.

It is important to consider these differences when choosing between a UCIT fund and a FlexPortfolio. The choice will depend on your investment strategy’s objectives and specific needs.

If you want more information about the FlexPortfolio, do not hesitate to contact our team.

Sources:

  • https://www.foxbusiness.com/markets/pros-and-cons-liquidity

Related Topics

Talk to an expert

FlexDual Portfolio Details

Dual Custody: Securitizes a strategy with listed assets in a Bank of New York Mellon & Interactive Brokers accounts

Applications

  • Bankability: Global distribution of a strategy
  • Centralized managed account
  • Fund creation alternative
  • Custody of locally listed bonds
  • Design a mixed investment strategy of fixed income, equities, and derivatives

Advantages

  • Trading and custody platform with available leverage
  • Efficient subscription through Euroclear
  • Actively managed by a Portfolio Manager
  • No limitations on rebalancing or portfolio composition
  • Cost efficient
  • Flexibility in the choice of executing broker for underlying trades

FlexRegulated Portfolio Details

Securitizes a strategy with listed assets in an Interactive Brokers account targeting institutional and retail investors

Applications

  • Global distribution of a strategy
  • Centralized managed account
  • Regulated fund creation alternative

Advantages

  • Trading and custody platform with available leverage
  • European UCITs compliant
  • Market to institutional and retail investors
  • Actively managed by a Portfolio Manager
  • Market maker as part of the solution
  • Low value tickets
  • Cost efficient

FlexOpen Portfolio Details

Securitizes a strategy with listed assets in any custodian account

Applications

  • Global distribution of a strategy
  • Centralized managed account
  • Regulated fund creation alternative

Advantages

  • Manage portfolios from any major custodian
  • Introducing Broker Dealers maximize revenue from own trading fees structure
  • AUM remain on the introducer broker agreement
  • Efficient subscription through Euroclear
  • Actively managed by the Portfolio Manager
  • No limitations on rebalancing or portfolio composition
  • Cost efficient

FlexPortfolio Details

Securitizes a strategy with listed assets in a Bank of New York Mellon or Interactive Broker custodian account

Applications

  • Global distribution of a strategy
  • Centralized managed account
  • Fund creation alternative
  • Custody of locally listed bonds

Advantages

  • Efficient subscription through Euroclear
  • Actively managed by a Portfolio Manager
  • No limitations on rebalancing or portfolio composition
  • Cost efficient
  • Flexibility in the choice of executing broker for underlying trades
Logo All RGB FF Logo FF Pos H

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.

FlexFunds ETP may collect data about your computer or device, including, where available, your IP address, operating system and browser type, for system administration and other similar purposes.