April 30, 2009
ReFlow Expands Online Reporting for Redemption Service
(San Francisco, CA) ReFlow, a global provider of capital to help mutual funds manage the impacts of shareholder flows, announced the introduction of expanded reporting and information management capabilities for its Redemption Service.
The enhanced reporting capabilities track the process by which ReFlow clients bid for capital in a daily online Dutch auction, exchange it for a ReFlow position in their funds, and later redeem ReFlow’s position. The firm’s clients will now have online access to full data on historic and current transactions with ReFlow, including auction bids, capital provided by ReFlow, fund redemptions of ReFlow’s position, and shares currently due for redemption.
ReFlow’s Redemption Service enables fund managers to raise capital in order to meet redemptions without selling securities, helping them improve performance and preserve portfolio strategies.
The expanded reporting capabilities will enable ReFlow clients to:
- Easily calculate estimated cost savings for reporting to fund boards of directors.
- Be more attuned to opportunities to improve portfolio management and fund performance by managing shareholder flow.
- Customize and streamline their internal flow of data on redemption coverage activity.
“These advances make it easier for mutual fund managers to capture performance by smoothing out the peaks and valleys of shareholder flows,” commented Paul Schaeffer, President of ReFlow. “We believe this kind of approach is an emerging best practice that will ultimately become standard in the industry.”
To date, the firm has provided nearly $2.46 billion in capital to help its mutual fund clients cover redemptions. ReFlow reported providing more than $224 million of capital in the first quarter of 2009 alone.
“Many funds continue to see redemptions outstripping new subscriptions. What’s more, distribution and demographic trends suggest that the volatility of asset flows will only increase in the future. Conflicts between daily liquidity demands and portfolio strategies aren’t tied to the current economic crisis and they’re not going away,” said Mr. Schaeffer.
Founded in 2002, ReFlow serves U.S. mutual funds and European investment funds (UCITS). The firm is headquartered in San Francisco with an office in Luxembourg. Its performance-enhancing toolkit has been approved by the boards of 19 mutual fund families, representing more than $252 billion in assets, for use by 389 funds. For more information about ReFlow and its Redemption Service, please visit www.reflow.com.