Constructing Your Securitized Investment Platform: A Comprehensive Approach

Securitized Investment Platforms Explained

A securitized investment platform (including actively managed certificates or tracker instruments) transforms an investment approach or asset base into a tradable security assigned an ISIN identifier. These instruments can be acquired and maintained through conventional custody arrangements and offer simpler distribution channels than traditional fund vehicles.

They are frequently deployed to deliver exposure to private holdings, dynamically managed portfolios or specialized approaches that do not conform to typical fund frameworks. This guide details the construction and implementation process.

1. Establish the Investment Approach and Client Profile

Initially, articulate the investment methodology. Will it remain static or require active oversight? Does it encompass public or private holdings? The structural framework depends on the strategy classification.

Subsequently, identify the target client base. When targeting institutions or professional counterparties, regulatory obligations may be reduced. For retail audiences, you will require a comprehensive prospectus, Key Information Documentation and a FINMA-regulated issuer or guarantor.

2. Select the Issuance Framework

You can issue via banking institutions or special purpose vehicles (SPVs).

Banking platforms manage issuance, net asset value reporting, transaction execution and other essential operations internally. However, the instrument becomes the bank's liability, meaning investors assume the institution's credit exposure. While initial costs may be lower, counterparty risk warrants consideration. For retail distribution, either a regulated issuer or collateral arrangements are necessary to eliminate issuer credit exposure.

When utilizing a platform provider for SPV issuance, they typically oversee issuance, NAV reporting and execution internally as well. Additionally, a collateral trustee is generally engaged to safeguard investor interests. Consequently, the instrument remains bankruptcy-remote and can be designed with greater flexibility.

Ipanema Institutional supports the SPV pathway with comprehensive infrastructure and coordination capabilities. This configuration eliminates issuer credit exposure and accommodates diverse strategies.

3. Assemble the Service Provider Framework

The following functions require coverage. Some platforms consolidate these services; others permit you to engage your own providers.

Ensure each responsibility is explicitly designated. Do not presume a platform manages it without written confirmation.

4. Develop the Documentation Suite

Commence with the term sheet. It addresses the strategy, fee arrangements, redemption provisions and risk factors. When issuing under an established program, the final terms integrate into a base prospectus. Otherwise, you will require a complete standalone prospectus.

For retail instruments, Key Information Documentation is obligatory. It should address risks, projected returns, expenses and investor exit mechanisms.

Additional requirements include:

• A portfolio management or advisory contract
• A collateral or pledge arrangement (SPV framework)
• Engagement documentation from your auditor, administrator or other providers

Engage legal advisors to prepare or examine all materials. Documentation errors create delays and regulatory exposure.

5. Navigate the Regulatory Landscape

Swiss regulation treats structured instruments distinctly from collective investment vehicles. Actively managed certificates and tracker instruments constitute financial instruments, not collective investment schemes. This distinction streamlines establishment procedures.

Retail offerings demand:

• A FINMA-approved issuer or guarantee from one
• A FinSA-compliant prospectus
• Key Information Documentation

For professional-only distribution, robust documentation remains necessary and investors must satisfy Swiss qualification standards.

Distributors must observe conduct obligations. When the instrument flows through external advisors or banking institutions, they manage KYC and suitability assessments.

6. Execute Launch and Distribution

Following documentation finalization, secure an ISIN assignment. This enables custody holding and trading capabilities. The issuer or market maker disseminates daily pricing, typically derived from the strategy's NAV.

When pursuing exchange listing, comply with their disclosure requirements, market-making obligations and paying agent protocols. SIX Exchange represents a common venue.

Distribute through private placement or platform channels. For broader accessibility, banking networks and exchange listings prove beneficial. Clarify eligible purchasers and required documentation.

7. Sustain and Supervise Operations

The calculation agent publishes NAVs and pricing data. The strategy manager submits rebalancing directives. The issuer (or SPV) executes transactions.

The administrator monitors performance, computes fees and manages reporting obligations. For collateralized instruments, the trustee supervises pledged holdings.

Audited financial statements, regulatory submissions and any structural modifications must be addressed promptly. When fees, managers or structure elements change, update documentation and notify relevant stakeholders.

Concluding Perspectives

Securitized investment platforms offer an efficient, adaptable method to package and distribute investment strategies. Whether involving private credit, tangible assets or dynamic public approaches, these platforms reduce operational friction and broaden distribution reach.

With appropriate partnerships and protocols, you can launch within weeks. Ipanema Institutional assists firms in structuring and distributing these instruments globally. For support inquiries, we welcome your contact.