You are on page 1of 8

Flex ETP Notes may not be offered or sold in the United States or to U.S.

Persons (as defined in Regulation S) unless the securities are registered under the Securities Act, or
an exemption from the registration requirements of the Securities Act is available. The Notes are subject to certain United States tax law requirements.

THIS IS

FlexETP

FlexETP, the most efficient


asset management program
concentrating on price speed
and flexibility.
FlexETPs are exchange traded products
providing a new solution for investment
management and distribution. The
underlying investments are wrapped
and distributed through a euroclearable
listed security.
The Program provides price (NAV)
calculation and distribution, ISIN/CUSIP,
Bloomberg page, trustee and audit
services.
FlexETPs work in collaboration with Citi,
PricewaterhouseCoopers, Euroclear and
Sanne Group.

JUST A BETTER OPTION


Investment managers and advisors make an important decision when
choosing the type of operating vehicle to use for managing assets.
FlexETPs provide simple and low cost establishment, reduced
regulatory oversight, distribution acceptance, no issuer risk, tax
deferment, underlying security flexibility and several other
additional benefits.

POOR
Separate
PassManaged
Through
Account
Entity

GOOD

Structured
Note

BETTER
Trust

UCIT /
SICAV

BEST

Fund

FlexETP

Cost & Administration Advantage


Low Set up Cost
Low Operating Cost

High Set up Speed and Simplicity


Internal Administration
NAV and Return Reporting/Statements

Annual Audit Reports


Investment through Brokerage Account

Distribution Advantage
Depository Registry/Euroclear
CUSIP/ISIN Published in Bloomberg
Trading Confidentiality
Higher Trailer/Placement Fee

Investment Advantage
Open End Structure
Flexibility in Underlying
Access to Leverage

Tax Advantage

Capital Gains/Tax Deferment


Withholding Tax Reduction

Risk Advantage
Issuer Risk
Confidentiality of Investor
Asset Protection/Cross Claim
Trustee Services

CREATING

OPPORTUNITY

Distinct flexibility and low cost


development of a FlexETP
provides significant benefits and
solutions unequaled by any
alternative.
Our purpose to bring an efficient
investment structure comes from a
two-fold market transition; Riskier
and inefficient brokerage investment
model, and tighter margins on
traditional investment products.

INVESTMENT MANAGER

EXAMPLE OF BENEFITS

INVESTMENT ADVISORS

Complete Administration Provided by Top Tier Professionals


Pooled Management via an Advantaged Investment Vehicle
No Requirement to Generate Statements or Invoice Customers

BROKER-DEALERS

Listed Notes as Proprietary Name-Branded Investment Products


Management Fee Generates Constant and Predictable Cash Flow
Notes are Purchased through Existing Brokerage Account

INTERMEDIARY ADVISORS

Increase Management Fee Revenue through Reduced Costs


No Requirement to Calculate or Distribute Investment Returns
No Requirement to Generate Statements or Invoice Customers

HEDGE FUNDS

Hedge Fund Product is Represented by Listed Note


Note is Purchased through Existing Brokerage Account
Complete Administration Provided by Top Tier Professionals

PROJECT DEVELOPERS

Ease of Access to Foreign Capital


Impervious Asset Protection
Administration by Independent Trustees

PLENTY OF ADVANTAGES
Investment advisors benefit from a turnkey solution issuing a FlexETP,
quickly and easily establishing one of the most advantageous and
flexible vehicles for raising capital and managing underlying assets.
CONFIDENTIALITY

ADVANTAGES

The composition and


trading in an account, as well as the investors
identity and information, remain confidential

Control

Confidentiality

Private Label

Depository Registry

Administration

Asset Protection

The advisor determines whether or not the


composition and trading activity of the brokerage
account is disclosed to note holders. The composition
and activity in an account traded using proprietary
techniques can remain confidential. Note holders will
see only the value of the note on their brokerage
account statement, which shall be reported by the
calculating agent at net asset value (NAV) only if the
underlying assets are market-priced securities,
otherwise, the value of notes will be reported at cost.

Tax Deferment

DEPOSITORY REGISTRY Euroclear registry,


purchased through existing brokerage accounts

CONTROL

Advisors control the composition


and management of the notes underlying assets
The advisor is formally appointed as the investment
manager and is the authorized party controlling the
composition and trading activity for the account that
holds the notes underlying assets. The accounts
permissible assets are too numerous to detail, but
include amongst others, debt, equities, receivables
and derivatives, and can be acquired and sold
pursuant so the terms established by the advisor.

PRIVATE LABEL

Notes are issued pursuant to

an advisors identity
FlexETPs are titled pursuant to the request of the
advisor, enhancing name recognition and credibility.
For example, ABC Advisors could title its FlexETP as
ABC Advisors EU Emerging Market Note.

ASSET PROTECTION

Investor claims are


limited to the underlying assets of the note; there
can be no cross-claim among notes
FlexETPs are ring-fenced, providing investors
protection against cross-claim brought by note
holders of other notes issued by the same advisor.
The investors rights to a claim are specifically limited
to the assets underlying the note in which they have
a secured interest.

FlexETPs are registered with an established


depository such as Euroclear where they are assigned
a unique CUSIP number. Custodial accounts can be
located anywhere and can have multiple currencies.
Advisors clients invest in the notes through their
existing brokerage account. There is no need to open
new investor accounts. AML or KYC procedures are
not needed when distributing a FlexETP to investors.

ADMINISTRATION

Professional administrative, trustee, and custodial services provided by


the most trusted financial institutions
IA Capital Structures Plc., has contracted industry
leaders such as Citibank, Sanne Group, Matheson
Ormsby Prentice or Walkers, and Price Waterhouse
Coopers. FlexETPs encompass a full range of
administrative services, including calculation,
transfer, reporting, paying, settlement, compliance,
trusteeship, legal and auditing.

TAX DEFERMENT

Note holders realize no


capital gain or loss until divestiture of the notes
Investment management vehicles such as LLCs and
partnerships pass capital gains and losses through to
members or shareholders annually. Alternatively, a
FlexETP provides that capital gains or losses are
realized only upon divestiture of the note.

KEY SOLUTIONS
FlexETP FUNDS
Develops funds to implement any strategy. The underlying is managed as a fund, and participations
are purchased as bonds with the advantage of the FlexETP. These funds create investment products for
clients that can be managed internally, as well as managing a single clients portfolio.

FlexETP WRAPPER
Subcontract the underlying portfolio management to a third party. A FlexETP can wrap a fund or
investment product for better distribution through quicker platform acceptance and limited regulatory
oversight. In addition, the advisor can determine the investment product characteristics.

FlexETP PRIVATE PLACEMENT


Make an investment vehicle that raises capital for a private purpose such as real estate purchases or
private shares. These products may have a greater degree of complexity and require the establishment
of Special Purpose Vehicles.

IN PARTNERSHIP WITH

Depository

Trustee Services

Euroclear is the worlds leading provider of


domestic and cross-border settlement and
related services for certain securities

Sanne Group provides trustee and related


services to FlexFunds, and has over $65
billion in assets under administration

Legal Services - Ireland

Transfer Agent

Mason Hayes & Curran is a full service


business law firm with 71 partners and
offices in Dublin, New York and London.

The leading global bank, has over 200 million


customer accounts and does business in
more than 160 countries and jurisdictions.

Legal Form
Irish Public Limited Liability Company

Auditor

Framework

Price, Waterhouse Coopers employs about


180,000 professionals covering all aspects of
tax, audit and investment management.

Securitization Act of 22 March 2004

Governing Law
The laws of Ireland

FlexETP.com
info@FlexETP.com
+1 646 387 1224
Miami | New York