Asset Management: establishing SICAV and/or dedicated sub-funds of SICAV

Banca Finnat, in collaboration with Natam Man.Co., offers corporate clients the opportunity to expand their product range by establishing dedicated products.

In particular, the following can be established on behalf of Account Managers, Corporate Investors or other Intermediaries:

• Multi-fund SICAV or mutual funds under Luxembourg law
• Dedicated sub-funds within a pre-existing SICAV.

Each of the two solutions has specific pros and cons to be taken into consideration (see below). However, both achieve the main objective of those wishing to have their own funds: the availability of tools for launching commercial and marketing strategies that facilitate the collection of savings and efficient management.

The vehicles are part of a “disciplined”, regulated, supervised and carefully controlled system in line with industry regulations and best practices. These factors are extremely reassuring for both corporate and retail investors. In particular, the UCITS brand is universally renowned and accepted in the managed savings industry.

The creation of dedicated vehicles can be appropriate in different contexts and for different types of clients:

• It can expand the range of products offered by an intermediary wishing to offer its “retail” clients a managed savings product with certain characteristics (and potentially also covering the role of account manager or advisor);
• It can simplify and make immediate portfolio valuation and accounting for institutions with large assets to manage (Foundations, Social Security Funds, Insurance Companies). In many cases, they prefer the SICAV sub-fund to the Asset Management sub-fund for administrative and accounting reasons, notwithstanding management criteria and, in the final analysis, actual portfolio composition;
• It can allow access to a distribution platform, for both retail and corporations, the size and spread of which is almost unmatched in Italy.

Finnat Group – and Natam Man.Co. in particular – will handle the set-up and authorisation process with the Luxembourg and Italian authorities (for commercialisation in Italy) and will also handle other important aspects over time: operational, administrative, control and compliance. The only task the Corporate Client must do is define the risk-return characteristics of the various sub-funds and agree on the elements needed to “customise” the same (name of the funds, investment policies, benchmarks, commissions, etc.).

Whether part of a new or a pre-existing SICAV, the sub-funds will have customised objectives, management policies, investment limits, benchmarks and commissions. The management of the sub-funds portfolio, as well as the trading of the financial instruments it contains, may be entrusted to third parties, i.e. to Banca Finnat. The latter hypothesis enables high-potential economies of scale to be realised.

Establishment of a dedicated vehicle (SICAV or Mutual fund)

Establishing a vehicle gives its promoter maximum flexibility and customisation, both in terms of organisational and operational model, and service providers. The name of the entire SICAV (naming a particular brand), the service providers, and the composition of the corporate bodies may be defined

Establishment of one or more sub-funds in New Millennium

This method, as an alternative to establishing a new SICAV, has the big advantage of being quicker and reducing set-up and administrative costs, which in many cases make the entire project difficult if not unfeasible.
It also enables the client, in the set-up phase and subsequently, to handle only a limited number of strategic and higher added value activities: collecting and managing investments.
Creating a sub-fund within the New Millennium SICAV also allows access to an enormous distribution platform thanks to the numerous placement agreements already in place with the major distribution networks in the country as well as the listing on the ATFund segment of Borsa Italiana.

If your bank is interested in this service, please contact us for the necessary technical and commercial agreements: istituzionali@finnat.it

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