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:
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.
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.