Allows managers to keep cash on hand for shareholder redemptions, and invest subscriptions opportunistically, without cash drag.
Gives advisors the ability to consolidate fund liquidity and realize a return on it equal to the return on the fund’s NAV, allowing sub-advisors to focus on their mandate and hold less cash.
Reduces urgency in executing large rebalance events. Funds can minimize market impact while remaining fully invested.
In return, the mutual fund pays a financing rate plus a spread.
ReFlow has provided U.S. mutual funds with greater than $4 billion in notional exposure through NAVswap.
Cash equitization in one product.
No basis risk is introduced as compared to using futures or ETFs.
Performance is tied directly to fund’s own NAV performance.
Exposure can be adjusted daily and automatically tied to portfolio cash.
No need for additional accounts or collateral posting.
For more information on NAVswap, or to speak with a member of our team, contact us via the form below.