FundBox.ai supports the growth of the next generation of boutique fund managers by reducing manager operating costs while significantly speeding up manager onboarding and time to market.
The FundBox.ai solution also provides investors with far better transparency to help them fast-track the search and matching process to find the right boutique managers.
Euro Risk Parity Fund
FundBox.ai
Tail Hedge Focus Fund
FundBox.ai
Commodity CTA Fund
FundBox.ai
G10 Currency Strategies Fund
FundBox.ai
Euro Risk Parity Fund
FundBox.ai
Tail Hedge Focus Fund
FundBox.ai
Commodity CTA Fund
FundBox.ai
G10 Currency Strategies Fund
FundBox.ai
Euro Risk Parity Fund
FundBox.ai
Tail Hedge Focus Fund
FundBox.ai
Commodity CTA Fund
FundBox.ai
G10 Currency Strategies Fund
FundBox.ai
Euro Risk Parity Fund
FundBox.ai
Tail Hedge Focus Fund
FundBox.ai
Commodity CTA Fund
FundBox.ai
G10 Currency Strategies Fund
FundBox.ai
Euro Risk Parity Fund
FundBox.ai
Tail Hedge Focus Fund
FundBox.ai
Commodity CTA Fund
FundBox.ai
G10 Currency Strategies Fund
FundBox.ai
Euro Risk Parity Fund
FundBox.ai
Tail Hedge Focus Fund
FundBox.ai
Commodity CTA Fund
FundBox.ai
G10 Currency Strategies Fund
FundBox.ai
Euro Risk Parity Fund
FundBox.ai
Tail Hedge Focus Fund
FundBox.ai
Commodity CTA Fund
FundBox.ai
G10 Currency Strategies Fund
FundBox.ai
Euro Risk Parity Fund
FundBox.ai
Tail Hedge Focus Fund
FundBox.ai
Commodity CTA Fund
FundBox.ai
G10 Currency Strategies Fund
FundBox.ai
Euro Risk Parity Fund
FundBox.ai
Tail Hedge Focus Fund
FundBox.ai
Commodity CTA Fund
FundBox.ai
G10 Currency Strategies Fund
FundBox.ai
Euro Risk Parity Fund
FundBox.ai
Tail Hedge Focus Fund
FundBox.ai
Commodity CTA Fund
FundBox.ai
G10 Currency Strategies Fund
FundBox.ai
FundBox.ai helps prospective managers from anywhere in the world to quickly and cost-effectively set up and run a fund. It is end-to-end infrastructure that takes and executes trading signals into a new fund vehicle with full operational support. In addition, it offers real-time risk control and visualization to give managers and investors detailed risk and performance information.
The FundBox vehicle is a Variable Capital Company structure regulated by the Monetary Authority of Singapore. It allows multiple collective yet ring-fenced investment schemes (sub-funds) to exist under the umbrella of a single corporate entity. Each FundBox will be a separate sub-fund under the Noviscient umbrella fund structure, with the usual fund provider services including fund administration, audit, and compliance.
1. We sign an engagement letter that specifies responsibilities, costs and fees
5. We help set up trading connectivity and performance reporting
2. You provide the first Noviscient fee (paid quarterly in advance)
6. You select from our panel of brokers and service providers
3. We undertake AML and KYC on you (the manager) and your investors
7. The fund receives the capital, and the manager commences trading
4. We provide templates and help you complete the documentation
1. We sign an engagement letter that specifies responsibilities, costs and fees
2. You provide the first Noviscient fee (paid quarterly in advance)
3. We undertake AML and KYC on you (the manager) and your investors
4. We provide templates and help you complete the documentation
5. We help set up trading connectivity and performance reporting
6. You select from our panel of brokers and service providers
7. The fund receives the capital, and the manager commences trading
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The FundBox.ai infrastructure provides managers with a portal that shows trading performance and risk analytics to help you manage your strategy.
Fund Expenses
Fund set up and operating costs are transparent with no markup. We work with you to select service providers and negotiate rates to keep these costs low.
Noviscient Fees
We charge 20% of your total fees (management and performance) and this scales down towards 5% as your total fees grow. These fees are subject to a minimum cost required to operate our platform.
Alternatives
Alternative fee structures that better fit your particular requirements may be possible.
The FundBox.ai solution offers some great benefits for the new manager to help maximize their chance of success.
Reduce fund setup and operating expenses by 70%
Faster onboarding so trading can start in 1-2 months rather than 6-12 months
Managers can focus on trading and signal generation instead of fund operations
Managers retain ownership of their IP and track record
At Noviscient, we want to be aligned with your success, which is why we value efficiency and transparency. Compared to traditional fund structures, which consume a lot of time and money, FundBox.ai is a leaner, more streamlined solution that keeps costs low, speeds up your time-to-market, and empowers you to focus on your strategy.
Setup Expenses
Time
Annual Fund Expenses
Estimated Manager Expenses
Personnel
Approximate Breakeven AUM
Setup Expenses
Application, licensing, onboarding, appointment, registration, marketing
Time
6-12 months
Fund Expenses
$90,000
Manager Expenses
$150,000
Personnel
Portfolio manager, risk, compliance, operations, capital raising
Breakeven AUM assumes
$70m
Setup Expenses
Application, KYC assessment, connectivity
Time
1-2 months
Fund Expenses
$30,000
Manager Expenses
$60,000
Personnel
Portfolio manager
Breakeven AUM assumes
$5m
Setup Expenses
Application, licensing, onboarding, appointment, registration, marketing
Time
6-12 months
Fund Expenses
$90,000
Manager Expenses
$150,000
Personnel
Portfolio manager, risk, compliance, operations, capital raising
Breakeven AUM assumes
$70m
Setup Expenses
Application, KYC assessment, connectivity
Time
1-2 months
Fund Expenses
$30,000
Manager Expenses
$60,000
Personnel
Portfolio manager
Breakeven AUM assumes
$5m
What is the fund vehicle?
The FundBox vehicle is a Variable Capital Company structure regulated under the Monetary Authority of Singapore. It allows multiple collective investment schemes (sub-funds) to exist under the umbrella of a single corporate entity and yet remain ring-fenced from each other.
Each FundBox will be a separate sub-fund under the Noviscient umbrella fund structure, with the usual fund service providers including administration, audit, and compliance.
How does the Singapore VCC compare with other vehicle structures?
The Singapore Variable Capital Company fund structure is deemed as a rival for Cayman Island funds. There are well documented comparisons online, you may refer to ACRA SG Gov or PWC for more details. And we are happy to address any questions you may have – email us at fundbox@noviscient.com.
What is the setup timeline?
The steps are: agree the terms, register the sub-fund, appoint service providers, complete the offering documents, onboard investors, and set up the connectivity.
The projected timeline is within two months which is still substantially shorter than launching a fund vehicle.
Will the fund be marketed under my own brand?
Yes.
What is the cost structure?
To ensure alignment, we charge a percentage of the manager's total fees with a floor. The fee sharing starts at 20% of total fees and scales down towards 5% as your fees increase. We are open to discuss alternative structures as well.
How does the FundBox compare with other fund vehicle options?
The cost is highly competitive given that the sub-fund leverages on the umbrella master fund's service providers and Noviscient's automated platform. We have a detailed cost comparison worksheet upon request.
What is the breakeven AUM for setting up a FundBox vehicle?
The breakeven AUM depends on your charged fees for your vehicle and expected performance. Based on a 1% management fee and 20% performance fee, a conservative assumption of zero return will lead to a breakeven AUM of $5M.
Who are Noviscient’s fund service providers?
We will provide you the list of service providers during the onboarding process. This will include fund administrator, auditor, bank, legal, corporate services and tax.
Are there any ongoing expenses?
The FundBox vehicle annual expenses are charged to the fund. And other than the Noviscient Fees, there are no other expenses. We will explain the expected expenses to you during onboarding process.
“I feel honored to be part of a very innovative platform business. I would also like to thank everyone for their attentive support in this situation. I believe the demand for this platform will continue to grow in the future.”
Asian Long-Short Equity Fund Manager
“The overall experience has been great. It helps a great deal sharing the same philosophy and outlook on how an investment management business should be structured and run.”
US Global Futures Hedge Fund
We are working with boutique funds currently managing over $2.2billion.
For more information, contact us at fundbox@noviscient.com
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