- In this article, you will find information on how a financial advisor can expand the reach of their strategies and reduce costs through FlexFunds ETPs.
- Targeted at all financial advisors looking to maximize their income and focus on operational efficiency.
- FlexFunds securitized products offer multiple advantages for financial advisors and their clients.
A financial advisor can provide more flexible and accessible alternatives
Today, the world of investment and capital management is highly competitive. Efficiency is essential to maximize a financial advisor‘s income and keep their business sustainable.
In this regard, some experts mention that one of the most effective approaches to meet a company’s financial goals is the securitization of assets by designing and issuing investment vehicles or ETPs. FlexFunds is a global leader in launching such tools, with a robust program that makes asset securitization easy for its clients.
Specifically, an ETP is a listed security with its own ISIN code and is distributable through Euroclear. It has underlying assets that can be liquid, such as stocks or bonds, or illiquid, such as real estate.
With these products, a financial advisor will be able to reach international investors and unlock significant potential due to the following advantages:
Reduction in administrative costs
By choosing a FlexFunds ETP, also known as a “Flex,” a financial advisor can reduce administrative expenses by approximately 40% compared to other alternatives.
These savings can be transferred directly to the client or retained by the advisor as an additional management income, making it especially valuable in the financial and stock market environment, where every penny matters.
As the business magazine Forbes explains, “…fees that may seem insignificant can substantially reduce your long-term wealth. Additionally, studies have shown that investments with higher fees often have lower returns than those with lower fees.”
In the same line of thought, FlexFunds’ ETPs (exchange-traded products) help save time, as their launch can be completed in half the time of other market alternatives.
Efficiency in account management
On the other hand, using FlexFunds solutions centralizes the management of multiple separate accounts in a structure similar to a fund, resulting in a drastic reduction in the time spent on each account by the financial advisor and, therefore, reduced management costs.
Thus, the specialists in charge of the portfolios can dedicate more time to effective investment strategies tailored to each investment profile and less time to administrative and operational tasks, increasing their productivity and ultimately maximizing their income.
Access to global providers and more investors
Furthermore, another benefit of using FlexFunds’ ETPs in financial advisory is that they allow the inclusion of globally leading service providers, which would otherwise be costly and challenging to hire.
It is important to note that FlexFunds is backed by internationally renowned service providers such as Interactive Brokers, Bank of New York Mellon, and Apex, among others.
As a result, financial advisors gain access to high-level tools and resources that enhance their investment strategies and attract investors and clients from around the world. The more investors join, the greater the potential income.
Efficient growth of assets under management
Thanks to FlexFunds’ products, financial advisors can efficiently grow their assets under management (AUM), reduce costs, and expand the distribution of their investment strategies.
At the same time, financial advisors will provide diversified strategies compatible with various investor profiles.
According to IBKR Campus, “…exchange-traded products offer investors access to a universe of exposures, from traditional asset classes like stocks and bonds to alternatives like commodities and currencies, which were previously only accessible to institutional investors.”
If you want to learn more about exchange-traded products and how you can benefit from them, please don’t hesitate to contact our team.
Sources:
- https://www.forbes.com/advisor/investing/impact-of-investment-fees/
