NAVswap

The NAVswap concept is simple: ReFlow pays mutual funds a return on their cash that matches the return on their Net Asset Value (NAV).

NAVswap is a basis-risk free cash equitization tool that enables funds to achieve fully-invested returns while holding tactical or flow-related cash buffers.

NAVswap Applications

Fund Flow Management
Allows managers to keep cash on hand for shareholder redemptions, and invest subscriptions opportunistically, without cash drag.

Cash Management Efficiencies for Sub-Advised Funds
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.

Rebalancing Events
Reduces urgency in executing large rebalance events. Funds can minimize market impact while remaining fully invested.

How it Works

NAVswap is an ISDA governed total return swap in which the mutual fund receives a return that matches the daily change of the fund’s Net Asset Value. In return, the mutual fund pays one-month LIBOR plus a spread.

  • The NAV and one-month Libor are reset daily.
  • Notional amount is fund-determined. Can reset daily based on cash holdings as reported by fund accountant.
  • No disclosure of fund’s portfolio holdings.
  • No collateral posted between fund and ReFlow. Tight intra-month triggers minimize counterparty risk.
  • Marked to market daily with monthly settlement.

NAVswap Advantages


  • Simple: Cash equitization in one product.
  • Customized: No basis risk is introduced as compared to using futures or ETFs.
  • Transparent: Performance is tied directly to fund’s own NAV performance.
  • Flexible: Exposure can be adjusted daily and automatically if tied to portfolio cash.
  • Convenient: No need for additional accounts or collateral posting.

get in touch

650 California Street
Suite 2700, San Francisco, CA 94108
Email: Info@reflow.com
Phone: (866) 473-3569

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Investors

Thanks for your interest in ReFlow Fund, which provides mutual funds with short-term liquidity and tax solutions. Founded by Mr. Gordon Getty in 2002, ReFlow Fund is designed to track the S&P 500 Index leveraging its patented operational structure, and outperform this Index with the fee income it generates from ReFlow Fund's liquidity and tax services. The investment manager of ReFlow Fund, ReFlow Services, LLC, manages all day-to-day operations.


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