FAQs

Frequently Asked Questions

The FNEX Ventures Fund is a closed-end interval fund. An interval fund is legally classified as a closed-end fund, and shares features with open-ended mutual funds.  More information on closed-end interval funds can be found on the SEC’s website, here https://www.sec.gov/fast-answers/answersmfinterhtm.html .

The FNEX Ventures Fund, as an interval fund, differs from traditional closed-end funds in two important ways:

  • The FNEX Ventures shares are continuously offered by the Fund for purchase by investors at net asset value (NAV) rather than traded on an exchange.
  • The FNEX Ventures redeems its shares through quarterly repurchase offers of up to 5% of the Fund’s outstanding net assets at NAV.

Investors can invest in the Fund at any time through participating brokers, and directly by contacting us at 877-244-6235.

Investors can learn how to invest directly in the Fund by reviewing the Prospectus.

The Fund offers quarterly repurchase offers that enable investors to sell shares. Each quarterly repurchase offer will be for up to 5% of the total shares outstanding at NAV. The Fund maintains liquid securities, cash or access to a bank line of credit in amounts sufficient to meet quarterly redemption requirements. Shareholders are notified of repurchase offers approximately 30 days before the repurchase request deadline. More details can be found in the Prospectus.

The NAV of the Fund’s shares is determined daily, after the close of regular trading. During the continuous offering, the price of the shares will increase or decrease on a daily basis according to the NAV of the shares. FNEX Ventures utilizes a third-party pricing agent to consult on NAV, and the FNEX Advisor advises the Fund as to NAV.  In computing NAV, portfolio securities of the Fund are valued at their current fair market values determined on the basis of market quotations, if available, and other available market information.  .More details can be found in the Prospectus.

The Board of Trustees of the Fund has overall responsibility for monitoring the Fund’s investment program and its management and operations. View the Board of Trustees.

The investment advisor for the Fund is FNEX Advisor, LLC.

The Fund’s annual advisory fee is 1.90%. Based on an expense limitation agreement between the Fund and the investment advisor, the total annual cost including certain Fund expenses is limited to 2.50% annually. For details, see Prospectus.

When a portfolio company goes public, the shares held by the Fund will typically be subject to a lock-up period that prevents sale of shares for a certain period of time. Once that lock-up has expired, it is the Advisor’s general expectation that the Fund will divest of its holdings in a reasonable timeframe, however the Advisor will take into consideration market dynamics when making its decision to divest or hold the position.

Any dividends or capital gains generated by the Fund’s portfolio companies will be automatically reinvested in the Fund unless an investor specifically elects to receive cash distributions. New investors can elect for cash distributions of dividend and capital gain proceeds in the Fund’s Subscription Agreement. Current investors who wish to change their election can do so by contacting the Fund Administrator at 877-244-6235.

The FNEX Target List should not be viewed as an index, but a selection of companies in which the Fund may seek to make an investment. There may be reasons why a particular company is not included in the Fund’s portfolio, including without limitation: limited availability of shares for purchase, or the investment advisor’s analysis of the appropriateness of particular securities.

The Fund’s minimum investment amount is $2,500.

Yes, as long as the broker where you hold your account has a selling agreement in place with the Fund.

The Fund is classified as an association taxable as a corporation for U.S. federal tax purposes. The Fund also (i) will elect to be treated as, and (ii) intends to operate in a manner to qualify as, a “regulated investment company” (a “RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended. As a RIC, the Fund generally will pay no U.S. federal income tax on the earnings or capital gains it timely distributes to Shareholders. This avoids a “double tax” on distributed earnings normally incurred by taxable investors in regular “C corporations.” Shareholders normally will be taxed on their Fund distributions (unless their Shares are held in a retirement account that permits tax deferral or the holder is otherwise exempt from U.S. federal income tax). Tax-exempt U.S. investors generally will not incur unrelated business taxable income with respect to an investment in Shares if they do not borrow to make the investment. The Fund’s tax reporting to Shareholders are made on IRS Forms 1099.

Please note that the information provided herein is for educational and informational purposes only, and should not be construed as any investment, financial, legal, or tax advice.

Important Disclosure

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus with this and other information about the Fund, please download here. Read the prospectus carefully before investing.

Investment in the Fund involves substantial risks and is highly speculative. There is no guarantee that the Fund will achieve its investment objective. The Fund is not appropriate for investors who cannot bear the risk of loss of all or part of their investment or who may need to liquidate all or part of their investment in a short time frame.

  • The Fund’s shares will not be listed on an exchange and it is not anticipated that a secondary market will develop. Accordingly, you may not be able to sell shares of the Fund when or in the amount that you desire. Investors should consider shares of the Fund to be an illiquid investment. Thus, the Funds’ shares are appropriate only as a long-term investment.
  • The amount of distributions that the Fund may pay, if any, is uncertain.
  • A Fund shareholder will not be able to redeem his, her, or its shares on a daily basis because the Fund is a closed-end fund. In addition, the Fund’s shares are subject to restrictions on transferability, and liquidity will be provided by the Fund only through quarterly repurchase offers or transfer of shares as described herein. An investment in the Fund is appropriate only for investors who can bear the risks associated with the limited liquidity of the Fund’s shares and should be viewed as a long-term investment.
  • The companies in which the Fund invests may have limited financial resources and may be unable to meet their obligations with their existing working capital, which may lead to equity financings that dilute the Fund’s holdings, bankruptcy or liquidation, and consequently the reduction or loss in the value of the Fund’s portfolio investment.
  • Investors in the Fund need to understand that such companies carry a high degree of investment risk because many of these firms may fail or not achieve their performance or financial objectives.
  • The Fund’s shares have no trading history and are repurchased at their fair market value, which may be a less than the purchase price paid.
  • The Fund is non-diversified and may invest in a smaller number of individual Targeted Portfolio Companies and financial instruments, including investing in each security to a greater degree, than a diversified investment company. As a result, the Fund may be more vulnerable and subject to greater volatility than a fund that is more broadly diversified.
  • Technology sector risk includes volatility, intense competition, decreasing life cycles, product obsolescence, changing consumer preferences and periodic downturns.
  • Targeted portfolio companies may have limited financial resources and may be unable to meet their obligations and Fund’s holdings could be substantially diluted if the Fund does not or cannot participate, bankruptcy or liquidation and the reduction or loss of the Fund’s investment.
  • The Fund may invest in small and/or unseasoned companies with small market capitalization. Such companies generally have potential for rapid growth, but often involve higher risks than larger companies.

Although effective, the Fund is not yet available to invest.