A Tracker is commonly used by an asset manager or a promoter to issue a debt certificate which is linked with a specific (pool of) assets.
It can be useful to tranche a large asset or a position into different slices which are then subscribed by investors.
A promoter might also use a Tracker to structure an investment in a specific asset and create an index which is linked to any sort of assets like:
Basket of securities (investment fund shares, bonds, notes, etc)
Receivable (mortgage, loan, credit, direct lending, portfolio of receivables,…)
Real estate
Private equity (venture, participation, etc)
Collectibles (art works, old cars, wines, etc)
Any type of future cash flow derived from an activity realised by a third party.
The asset manager can place one asset into the Tracker to let investor sharing the ownership and risks linked to this asset.
Thanks to the securitisation legislation in Luxembourg one can create an investment solution for investors by virtue of which they receive a single bond or note which risks is lined with an underlying asset or linked with one specific investment or project.
For more information regarding the different structures, please contact Creacom@creatrust.com or by telephone on 00 352 277 297 40.
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