The Guernsey-registered ITI Funds has set up five platforms – three in Luxembourg and two in the Cayman Islands – that dramatically reduce the cost of entry to the fund management business.
The platforms offer a variety of solutions that allow a potential fund manager to do anything from a high quality UCITS- regulated fund, the European gold standard of well-regulated funds that trade stocks and bonds – to the lightly regulated cryptocurrency exchange funds.
A fintech innovation, these platforms allow would-be managers to quickly and cheaply get into business. ITI Funds has dramatically lowered the cost of entry so where you used to need at least $30mn of assets under management (AUM) to run a fund, now you can do it for as little as $2mn. That could democratise the asset management business and turn the pyramid on its head.
ITI Funds keeps a foot in two worlds as it works both with investors and portfolio managers, matching their interests of both groups. It provides managers with a range of services: fund set up, fundraising, legal advisory, operational support, outsourcing investor relations. But the main difference from other companies providing services to funds, is help setting up new funds; ITI Funds does not just take anyone on as client: a portfolio manager has to pass an audit and confirm strategy performance before they become a client and the new becomes an eligible product, which ITI Funds can offer to its investors.
bne IntelliNews editor-in-chief Ben Aris talks to the CEO of ITI Finds Gleb Yakovlev about his business and the services that the company offers.
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Listen to the podcast of the full interview here