The FlexPortfolio solution is a worldwide reference in the market for asset managers looking for a fast, cost-efficient investment structure to launch their investment strategies. It stands out for its simplicity and competitiveness when setting up the investment vehicle, especially compared to other alternatives such as Active Management Certificates (AMCs).
What is the FlexFunds’ FlexPortfolio based on?
The FlexPortfolio is an investment vehicle that allows securitization of a large number of listed assets.
Its function is to transform an investment strategy into tradable security listed on a stock exchange. In this way, asset managers can broaden the distribution of their portfolios.
Since managing individual client accounts is not scalable, the FlexPortfolio is designed as a solution to provide the investment strategy with a flexible structure, adapted to a specific need, access to investors, with few restrictions, fast launch, and no setup or maintenance costs.
At FlexFunds, we coordinate the setup and launching of customized ETPs. We work with international renowned providers to offer comprehensive service with the best quality/price ratio.
The FlexPortfolio provides a simplified turnkey solution for investment advisors to create their own unregulated investment vehicle (ETP) that securitizes liquid assets, such as company stocks, bonds, options, futures, currencies, and even ETFs.
What are the advantages offered by the FlexPortfolio?
In contrast to AMCs, these are some of the main advantages offered by the FlexPortfolio.
Although Active Management Certificates (AMCs) are a flexible alternative with capabilities to solve the scalability problem, they are structured products. Consequently, they have greater complexity and do not share many advantages ETPs offer. Specifically, the FlexPortfolio has the following characteristics.
Flexibility
FlexPortfolio offers broad flexibility in the underlying assets that comprise it.
Ease of distribution
Investors can access their investment strategy directly from their own brokerage accounts. It is a simple securities subscription transaction.
The FlexPortfolio is a “Eurocleable” investment vehicle. Therefore, the distribution of your investment strategy can be global.
Management Capability
There is little or no restriction concerning rebalancing or trading the underlying FlexPortfolio account.
The administrator can perform all trades directly in the brokerage account without third-party involvement.
FlexPortfolio allows direct access and trading of your brokerage account 24 hours a day, 7 days a week, regardless of time zone.
Security of issuance
The investment strategy is backed by the underlying assets and utterly independent of the promoter’s activities.
Possibility of leverage
Leverage can be available for many strategies. At FlexFunds through Interactive Brokers, we offer you the possibility to trade on margin.
Competitive costs
The FlexPortfolio has no setup or maintenance cost, making it a cost-efficient investment vehicle.
Speed of launch
The FlexPortfolio’s setup and launch time range from 6 to 8 weeks.
In summary, the FlexPortfolio provides a simple and cost-efficient solution for asset managers that adapts to their investment needs and strategy.
Consider our “FlexPortfolio” when evaluating an AMC or any other investment vehicle. You can contact FlexFunds, and one of our representatives will help you select which solution best suits your needs and investment strategy.
Sources:
- https://www.vontobel.com/en-de/wealth-management/financial-intermediaries/strategic-certificates-amc/#:~:text=Actively%20Managed%20Certificates%20(AMCs)%20are,to%20a%20matter%20of%20weeks.
- https://imaps-capital.com/imaps-etis-the-new-generation-of-actively-managed-certificates/#:~:text=A%20disadvantage%20of%20most%20Actively,setup%20to%20solve%20this%20problem.
