AMC on Funds (Fund of funds)

*This use case is a scenario from our partner GenTwo

AMC on Funds (Fund of funds)

Reduce your total expense ratio (TER)

How it works

Fund of Funds have been regarded as a popular solution for professional investors. Today, an Actively Managed Certificate on funds is an even better way to achieve a broad diversification while offering an appropriate asset allocation. Investing in low correlated portfolios in the same asset class should, in theory, lead to a portfolio that is less exposed to high volatility swings compared to direct investments in securities or single funds. This helps to achieve better risk-adjusted returns in the portfolio context.

RainFin allows you to create flexible Fund- Portfolios- and Strategies

  • Asset managers can structure their Actively Managed Certificate on funds in a flexible and simple manner
  • The investors can buy AMCs (Swiss ISIN) on the portfolio of funds through their bank to participate in the performance
  • Asset managers can designate a custodian per note and decide on the most advanced broker for trading and rebalancing
  • Lower costs and a more flexible structure

Unfortunately, investors must face the reality that returns generated by fund managers are exposed to an accumulation of operating fees carried by the underlying funds. As if this wasn’t already bad enough, FoF-Managers charge their own additional fees for the investment process. As a result, investors find themselves with high running costs (TER) to gain access to a professional diversified portfolio.

Additionally, not all funds are accessible for qualified investors. Many of the more prestigious funds have insuperable hurdles and special requirements just to participate in these investment schemes. RainFin can reduce costs, increase investors’ returns and be your gateway into a new investment universe!

Advantages

Asset Manager
  • Open platform: AM can choose broker/custodian
  • Fully transparent solution (AM can always see the full balance sheet)
  • Unlimited number of rebalancings
  • Easy AM Fee collection
  • Possibility for an AM to generate a track record

Investor
  • Less costs (TER) = more return
  • Limited issuer risk
  • Easy to invest (CH-ISIN)
  • Possibility to participate in the investment strategies of the AM

See how XCAP Consulting is evolving finance