FlexShares Listed Private Equity UCITS ETF USD Acc

Issuer: Waystone

Asset Class: Equity

TER: 40bps

Trading Currency: GBP

Pays Income: False

Listing Date: 07 Feb 2022

Ticker: FLPE

ISIN: IE0008ZGI5C1

This fund provides a unique pathway to the private equity market by investing in a diversified portfolio of publicly listed companies that are principally engaged in private equity activities. These include listed private equity firms, business development companies, and other vehicles that invest in or lend to private enterprises. The strategy specifically targets companies in developed markets outside of the United States, offering investors a distinct geographical exposure that complements a US-centric portfolio. By tracking a rules-based index, the fund offers a transparent and systematic approach to capturing the returns associated with the growth of privately-held businesses, without directly investing in illiquid, unlisted assets.

The primary appeal of this investment lies in its ability to offer the potential long-term growth of private equity with the practical advantages of a publicly traded security. Unlike traditional private equity funds, which typically require high minimum investments, long-term capital commitments, and limited liquidity, this vehicle can be bought and sold on an exchange like a regular stock. This structure democratizes access to an asset class that has historically been the preserve of large institutional investors, providing enhanced liquidity, transparency, and portfolio flexibility. It allows investors to tap into the value creation happening in private markets, which often includes innovative and high-growth sectors.

This product is well-suited for investors seeking to diversify their equity holdings and enhance long-term capital appreciation potential. It can act as a strategic satellite holding within a broader portfolio, offering a risk-return profile that differs from traditional public equities and bonds. By providing exposure to a basket of global ex-US private equity-related companies, the fund mitigates single-company risk and offers a convenient, cost-effective tool for gaining access to the performance drivers of the private equity landscape.