Fundex NFT

11/01/2023

The way forward in real estate market

Global real estate markets are experiencing significant change because of new economic cycles and strong thematic trends. We believe that global economies and how we use real estate are driving different outlooks from one corner of the globe to another. In this context, looking beyond domestic marke...

09/10/2022

https://fundexnft.com/Details?id=12

Making the pitch for Europe has been, to put it mildly, challenging over the course of 2022. Those bearish on Europe’s near-term prospects – and it isn’t particularly difficult to find them – have had no shortage of factors at which to point. This year alone we’ve had the tragic war in Ukr...

06/10/2022

CAN PRIVATE MARKETS ENHANCE RESILIENCE IN AN ERA OF UNCERTAINTY
Today’s macroeconomic backdrop is characterized by rising inflation, higher interest rates, and slowing growth.

As investors review their options in this era of uncertainty, we take a look at whether an allocation to private markets has the potential to enhance portfolio resilience and bolster returns.

Growth across private markets

Before we assess the benefits of investing in markets such as real estate, infrastructure, private equity, and private credit, it’s worth a reminder of the size and importance of these asset classes in today’s investment landscape.

Private markets have grown phenomenally in the last two decades, in some cases overtaking public markets. Figure 1, below, demonstrates the substantial growth in private markets, with assets under management now over $10 trillion as at the end of 2021, compared to the noticeable trend of shrinking public markets.

Meanwhile, Figure 2, below, shows a drastic decline in the number of public companies across the United States. With many businesses choosing to remain private for longer, investors seeking exposure to fast-growing and innovative companies are looking for opportunities across private markets.

Managing risk through diversification

As we have seen in the charts above, private market assets are no longer niche investments. On the contrary, they are set to become an increasingly important feature in diversified portfolios.

Recent market volatility has shown that the relationship between equities and bonds is not as uncorrelated as previously thought. Consequently, investors are questioning the traditional portfolio allocation of 60% equities and 40% bonds. Many are breaking this 60/40 mould in pursuit of more diversified portfolios, with one increasingly popular option being an allocation to private markets.

A question of correlation

When it comes to building a diversified portfolio, an awareness of the correlation between assets is essential. Figure 3 below demonstrates that private markets have a low correlation to public markets.

Furthermore, as evidenced in Figure 2, the opportunity to diversify across public markets is becoming smaller. Large cap companies dominate public markets, with the top five companies accounting for 22% of the S&P 500 , meaning that risk and return is concentrated across these key players.

We believe that as more companies stay private for longer, an allocation to private markets can provide a real source of diversification to portfolios.

Identifying opportunities amid uncertainty

As well as improving diversification, an allocation to private markets can potentially enable investors to better tap into the opportunities offered by long-term structural growth trends.



The opportunity set across industries such as health care, food and finance is vast.

The Covid-19 pandemic accelerated many of these trends and highlighted the need for technology advancements. The opportunity set across industries such as health care, food and finance is vast, with technological innovation playing a significant role in the growth of economies and industries.
Alongside the transition to low-carbon economies and the achievement of net zero targets, the importance of energy independence and security has grown in significance in light of the war in Ukraine. In order to achieve these targets, a significant increase in investment in renewable energy and energy efficient technologies will be required to drive efficiency, reduce emissions and secure energy supply. Investing directly into this theme is made possible through private markets such as renewable infrastructure and private credit funding across new plant technology and innovative renewable solutions. Investors can potentially strengthen the climate change resiliency of their portfolios through such positions.

Demographic change
Lastly, populations in developed markets are becoming more elderly in contrast to those in emerging markets. As populations age, consumer demand will shift to services, particularly healthcare, with a greater focus on sustaining wellbeing.

We saw faster mobile and digital health advancements during the pandemic, which expedited the need for telehealth, virtual consultations and e-pharmacy. To support economies with younger populations, investment in urban development and infrastructure will be crucial. We foresee considerable opportunity across transportation systems, utilities and in social infrastructure, such as schools and hospitals.

Allocation to infrastructure, real estate and natural resources will allow investors direct exposure to these themes, and the ability to take advantage of the demographic changes across developed and emerging markets.

Final thoughts
As uncertainty across the geopolitical and economic environment continues, we believe building a resilient portfolio through

diversification will be key to navigating market volatility.
An allocation to private markets is one way to add more diverse sources of return to client portfolios. That said, given the complexity of these markets, selectivity, scrutiny, experience, and skill are required in order to identify assets that tap into long-term structural drivers of growth in a meaningful way.

04/10/2022

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OUR SERVICES AT FUNDEX NFT AND OVERVIEW

02/10/2022

💠What is Know Your Customer (KYC) and why it's important

Know Your Customer (KYC) is a standard due diligence process used by investment firms i.e., wealth management, broker dealers, private lenders, commercial real estate investment, among others to assess investors they are conducting business with. Apart from being a legal and regulatory requirement, KYC is a good business practice as well to better understand investment objectives and suitability, and reduce risk from suspicious activities.

So, what is KYC? In a nutshell, it is the process of identifying who your investors are and their wealth status, verifying the sources of the customer's funds (if they are legitimate or not), and requiring detailed anti-money laundering (AML) information from the customers. Getting the detailed information about your customer protects both parties in a business transaction and relationship. KYC serves an important purpose for providing superior service, preventing liability, and avoiding association with money laundering, and types of fraud.

💠The importance of KYC

KYC is a standard requirement globally within the investment industry. It’s a process from industry regulatory bodies to protect all stakeholders within the industry and it’s in the best business interest of any investment firm or investor, especially if there is a lot of money at stake which Fundex nft holds a lot of transactions in the passive income streams .

In addition to the KYC process for new investors, it’s also a requirement to conduct KYC on repeat investors or “renew” the KYC profile on file at the firm. Maintaining accurate and updated records firm wide is critical.

💠For Our Company Fundex NFT

If a business or issuer complies with KYC policies, it will reduce the financial risks of their business arrangements with particular customers, hence giving the customers uper protections, knowing who your next of kin is, and how to transfer funds during emergency matters, such as, COVID 19 casualties, death, accidents, and other natural disasters. Knowing the customer’s financial goals and dream income, gauging their capability of investing in our market, and obtaining their complete financial portfolio and background are important aspects of KYC requirements. Those checks can also be vital risk management strategies to avoid getting entangled in business relationships with potential customers who have participated in illegal activities.

KYC procedures also help establish trust in a business relationship and give an organization insight into the nature of customer activities. On top of that, they are a crucial part of the onboarding process and can significantly improve the servicing and management of investors over the course of the relationship.

💠For Our customers

The importance of KYC may not be evident from the investor's point of view, however their own protection is the priority of regulators. These rigorous checks can be a burdensome process for the investor, however they create a secure and trustworthy environment to enable financial or investment activities with the company. Digital technology has allowed for a much smoother, streamlined onboarding experience, that transforms a process that used to take months into an intuitive experience that can be performed in minutes on any device. The technology behind protecting sensitive information has also evolved, with methods such as advanced authentication and encryption (2FA) giving the customer base confidence in every KYC procedure.

💠What is the KYC process?

While the exact steps may differ based on KYC laws across different countries, most of the frameworks include the same elements. A KYC process usually consists of verifying the customer’s identity, investment suitability, and due diligence on various documentation such as proof of address and income.

Customer identification
A critical element to a successful KYC methodology is risk assessment, and it’s up to the individual organization to determine the exact KYC policy to counter any potential issues and ensure compliance.

The minimum requirements for customer identification include the following information:

Name
Date of birth
Address
Identification number
Tax Number
Investment Experience
Investment Preferences
Income and Assets,
💠 KYC Needed

✅ID cards
✅Drivers license
✅Work permits
After gathering this information during onboarding, an organization must make sure to verify the identity of the account holder within a reasonable timeframe. This process can include documents, non-documentary methods (depending on information availability), as well as a combination of the two.

KYC policies are decided based on the risk assessment strategy within an organization, with factors such as the type of account and services offered, the customer’s geographic location, the organization’s size and others playing a role.

💠Customer Due Diligence

For any organization in the investment industry, one of the other aspects of KYC requirements is based on being able to trust the investor. A key component of determining that is Customer Due Diligence (CDD). There are multiple levels of CDD based on the potential risks involved in the business relationship. Simplified Due Diligence refers to situations where the risk of fraud or other illegal activities is perceived as low. As a result, the information needed to verify a customer’s background is not as comprehensive as in other cases. Basic CDD is the standard approach to collecting information, whereas Enhanced Due Diligence is applied in higher-risk situations. With EDD, factors such as the location and occupation of the customer are taken into consideration, as well as their pattern of activity, transaction types, methods of payment and other similar types of information.

Customer Due Diligence usually incorporates some of the following steps:

Determining and verifying the identity and location of the potential customer
Gaining a clear overview of a customer’s business activities
Determining the potential risks associated with the customer
Storing and monitoring information about a customer
Performing periodic due diligence assessments to determine if the existing risk category is still applicable
It is essential to keep records of all the CDD- and EDD-checks performed on a customer or potential customer, as they may need to be presented during a regulatory audit.

💠What Fundex NFT do in Ongoing Monitoring

Checking our customer’s background once is not enough for establishing long-term trust. Some regulations envision a level of monitoring on an ongoing basis.

Some of the factors to look out for during monitoring include unusual spikes in activities, media mentions pointing to fraud or illegal undertakings, unexpected activities in other countries, the inclusion of the customer on sanction lists, and others. In these cases, a Suspicious Transaction Report may be created. The level of monitoring generally depends on the risk-based assessment and risk management strategy. Information about an account always needs to be up-to-date for the company to be able to determine the risk level correctly.

💠Requirements and regulations across the globe

Our KYC requirements are standard practice around the world when dealing with financial transactions and investments. Each country has variations in terms of the exact information and documentation necessary to collect from investors, however the processes are similar and with the same intentions to better safeguard the financial industry and provide investor protections. Below are a few overviews of KYC regulations in countries that Fundex NFT has active customers:

💠Canada

Canada’s financial intelligence unit, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), made amendments to its Know Your Customer/Anti-Money Laundering (KYC AML) regulations in 2019, with most changes coming into effect in 2020. Despite Canada being one of the founding members of the Financial Action Task Force (FATF), multiple evaluations in recent years unearthed some deficiencies which needed to be corrected. For example, Customer Due Diligence regulations in Canada did not require verifying the source of wealth of its regulated entities.

As a result, numerous refinements were made, with one of the most impactful ones being a change in the definition of an acceptable document to determine a customer’s identity. Instead of an “original, valid and current”, a document now has to be “authentic, valid and current.”

💠United States

In the United States, Know Your Customer practices have been mandatory for banks since 2001 and the proclamation of the Patriot Act. The act was created to combat and prevent money laundering, terrorism funding, and other illegal activities.

Singapore

Various industries in Singapore are subject to Anti Money Laundering/Know Your Customer requirements, with the Monetary Authority of Singapore acting as the central intelligence unit. Singapore has been a reputable international financial center since its independence in 1965, but its relatively simple verification process in the past led to illegal investor activities becoming commonplace. In an effort to stop this, Singapore restructured its anti-money laundering laws in 2007.

Additionally, close to 200 jurisdictions across the globe have committed to recommendations from the Financial Action Task Force (FATF), a global organization aimed at preventing money laundering.