Step-by-Step: Structuring Your Securitised Investment Vehicle

Introduction to Securitised Investment Vehicles 

A Securitised Investment Vehicle (such as an AMC or tracker note) converts a strategy or asset into a security with an ISIN. These can be bought and held through standard custody accounts and are easier to distribute than traditional funds.

They are commonly used to provide access to private assets, active portfolios, or niche strategies that do not fit inside typical fund structures. This guide explains how to structure and launch one.

1. Define the Strategy and Investor Type

First, define the investment strategy. Is it static or actively managed? Public or private assets? The structure depends on the type of strategy.

Next, define the target investors. If they are institutions or professional clients, the regulatory requirements may be lighter. If you are targeting retail, you will need a full prospectus, a Key Information Document, and a FINMA-regulated issuer or guarantor.

2. Choose the Issuer Model

You can issue through a bank or an SPV.

Bank platforms handle issuance, NAV reporting, trade execution and other key functions in-house. However, the product becomes a liability of the bank, which means investors take on the bank’s credit risk. So while you may have lower start-up costs, the counterparty risk is worth noting. For retail distribution, you need either a regulated issuer or collateral to eliminate issuer credit risk.

When you use a platform provider for the SPV, they typically handle issuance, NAV reporting and execution in-house as well. Plus, a collateral trustee is usually involved to protect investors. So, the product is bankruptcy-remote and can be structured more flexibly.

FundFront supports the SPV route with end-to-end infrastructure and coordination. This setup avoids issuer credit risk and works for many strategies.

3. Build the Service Provider Stack

You will need the following roles covered. Some platforms bundle these; others let you bring your own.

Make sure each function is clearly assigned. Do not assume a platform handles it unless it’s in writing.

4. Prepare the Documentation

Begin with the term sheet. It covers the strategy, fees, redemption terms and risks. If you are issuing under an existing program, the final terms slot into a base prospectus. If not, you will need a full stand-alone prospectus.

For retail products, a Key Information Document is mandatory. It should cover risks, expected returns, costs and how investors can exit.

You will also need:

• A portfolio management or advisory agreement
• A collateral or pledge agreement (SPV model)
• Engagement letters from your auditor, administrator, or other providers

Use legal counsel to draft or review everything. Mistakes in these documents cause delays and regulatory risk.

5. Understand the Regulatory Rules

Swiss law treats structured products differently from funds. AMCs and tracker notes are financial instruments, not collective investment schemes. That simplifies the setup.

Retail offerings require:

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

For professional-only distribution you still need solid documentation and investors must qualify under Swiss rules.

Distributors must follow conduct rules. If the product goes through external advisors or banks, they handle KYC and suitability checks.

6. Launch and Distribute

Once documentation is final, assign an ISIN. This allows the product to be held in custody and traded. The issuer or market maker publishes a daily price, often based on the strategy’s NAV.

If listing on an exchange, follow their rules on disclosures, market making and paying agents. SIX Exchange is common.

Distribute this through private placement or platforms. If the goal is broader access, bank networks and exchange listings help. Be clear on who can buy and what documentation they need.

7. Maintain and Monitor

The calculation agent publishes NAVs and prices. The strategy manager submits any rebalance instructions. The issuer (or SPV) processes trades.

The administrator tracks performance, calculates fees and handles reporting. For collateralised products, the trustee monitors the pledged assets.

Audited financials, regulatory filings and any changes to the product must be handled promptly. If fees, managers, or structure change, update the docs and inform relevant parties.

Conclusion

Securitised investment vehicles are a fast, flexible way to package and distribute investment strategies. Whether it’s private credit, real assets, or an active public strategy, these vehicles reduce friction and expand your reach.

With the right partners and process, you can launch in a few weeks. FundFront helps firms structure and distribute these products globally. If you need support, we’re happy to help. Email hello@fundfront.com or complete the contact form on our website. 

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• Securitisation and the Use of Orphan SPVs
• Securitisation in Alternative Investments

Disclaimer

FundFront provides operational and technological solutions for fund structuring, securitisation and management. We do not provide legal, tax or financial advice. We recommend that you consult with professional legal or financial advisors to ensure compliance and appropriateness for your specific situation.