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Thus a securitisation vehicle can be set
up to acquire the securities or units of the fund. The securitisation
vehicle will then issue certificates or units that it can
share out among investors. The latter may thus subscribe for
smaller quantities or for lower amounts and can thus participate
in the return of the underlying assets. The certificates or
units created will give rise to an entitlement to all or part
of the return of the underlying assets acquired by the securitisation
vehicle and will also provide an entitlement to the reimbursement
of the principal when the underlying assets are redeemed to
the securitisation vehicle by the issuer.
There is also the option for investors to
receive only part of the returns on the underlying assets
in exchange for a full or partial guarantee of the capital
they have invested.
Another use is the creation of certificates
by the securitisation vehicle that are directly or indirectly
linked to the value of an index or another transferable security:
In this case, the investors receive certificates from the
securitisation vehicle against their investment. The latter
invests the initial capital in a basket of indices, in transferable
securities, in a principal fund (feeder), or in another investment
vehicle, ...
Each increase in the value of this financial product is automatically
replicated, fully or partially, in the value of the certificate
subscribed by the investors. (Tracker)
This technique allows a tracker to be set
up, which will replicate the value of a feeder fund. The trackers
are divided among the portfolios of other people who may thus
synthetically benefit from the growth in value of a portfolio
(without investing directly in them).
The issue of trackers is not necessarily
always linked to an existing fund or a known index: each securitisation
vehicle may create its own index which will take into account
the risks defined by the terms and conditions of the issue
of the certificate to investors.
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