- Almost any asset class or strategy can be wrapped into a structured product, provided it can be valued and the underlying can be held or ring-fenced.
- The two requirements are valuability and collateralisation: a calculable NAV and a legally held underlying, either directly or through a Smart Edge PCC cell.
- The underlying determines the product type: AMC for dynamic and managed strategies, Tracker for rules-based or fixed exposures, CLN for named credit risk.
- All SMART products are issued through a dedicated cell of Smart Edge PCC Limited, providing statutory asset segregation for every transaction without a standalone SPV.
- Within Smart Edge PCC Limited, digital asset exposure is limited to ETN and ETP structures; other solutions may be available on request.
Introduction
The answer is broad: almost any asset class, strategy, or cash-flow stream can be securitised, provided two conditions are met. First, a net asset value must be calculable and reportable to investors. Second, the underlying must be held or controlled by the issuer, either directly in the case of liquid securities, or ring-fenced inside a special-purpose vehicle (SPV) when the underlying is illiquid, physical, or otherwise not directly custodisable.
In practice, the Swiss structured products market accommodates underlyings ranging from the most liquid (single exchange-traded equities, major indices, G10 currencies) to the most illiquid (art collections, real estate development projects, infrastructure loans, and private equity co-investments). The structuring mechanism is the same in each case: the underlying is held or referenced by the issuer's SPV structure, and the investor's claim is evidenced by a note carrying a Swiss ISIN, settled through SIX SIS, and held in a standard custody account.
The breadth of eligible underlyings reflects the structural neutrality of the product wrapper: the note imposes no constraint on what the issuing cell holds. What determines eligibility is not the asset class but the ability to establish a defensible valuation methodology, a compliant custody arrangement, and a reporting cadence that satisfies the issuer's requirements.
The Two Practical Requirements
Before examining asset classes in detail, it is worth stating clearly what is required of any underlying before it can be securitised:
The structured product wrapper adds bankability, not a change in the underlying risk. The investor still bears the economic risk of the underlying; the wrapper simply makes that risk accessible through standard custody infrastructure.
Asset Classes by Product Type
The following matrix summarises the asset classes that are routinely structured, and which SMART product vehicle is most appropriate for each. The tags indicate which product types can reference the underlying.
How Illiquid Assets Are Structured: The SPV Route
When the underlying is a physical or illiquid asset - real estate, infrastructure, art, private equity - it cannot be held in a standard securities account at a broker or bank in the same way a listed equity can. The solution is a dedicated cell within Smart Edge PCC Limited, the SMART platform's issuing vehicle. Each illiquid or physical underlying is held inside its own ring-fenced corporate cell within Smart Edge PCC - a cell that exists solely to hold that asset and service the notes issued against it. The note issued to investors represents a claim on that cell's assets only; it carries no exposure to any other cell, to the company's general assets, or to the issuer's other creditors. This segregation is not contractual but statutory: under PCC legislation, cell assets are legally separate from all other assets of the company by operation of law.
- Real estate project or loan
- Infrastructure asset
- Private equity position
- Art, wine, or collectible
- Contractual cash flow stream
- Holds the asset legally and exclusively
- Bankruptcy-remote from the issuer
- Receives, holds, and distributes cash flows
- Valued by independent calculation agent
- Governed by dedicated constitutional documents
- References SPV economic interest
- Carries Swiss ISIN
- Settles via SIX SIS
- Held in standard custody account
The SPV structure provides investor protections that go beyond simple note issuance: assets are ring-fenced, cash flows are contractually directed to noteholders, and valuation is performed by an independent party on a schedule defined at inception. For investors, the result is a custody-ready instrument with the same operational simplicity as any publicly listed security, regardless of how illiquid the underlying is.
How SMART Addresses This: Smart Edge PCC
On the SMART platform, structured products are issued through Smart Edge PCC Limited - a purpose-built Protected Cell Company that covers the full spectrum of asset types, from liquid strategies to illiquid asset structures, without requiring a bespoke legal vehicle (SPV) for each transaction.
The underlying assets are held in a structure that is legally separate from Onvest AG, from the issuance vehicle's other products, and from any third-party creditors. When a promoter brings a real estate project, a private equity co-investment, or a collection of alternative assets to the SMART platform, a dedicated cell is established before issuance. The note is then issued against that ring-fenced collateral, and investors subscribe knowing exactly what the underlying is, how it is held, and who calculates its value.
The PCC structure in Smart Edge is not a marketing feature - it is a statutory protection. Under PCC legislation, the segregation of cell assets from the general assets of the company, and from the assets of other cells, is enforceable against third parties including liquidators and creditors. This is the same protection a standalone SPV provides, at a fraction of the setup cost and time.
Practical Constraints: What Cannot Easily Be Structured
While the range of possible underlyings is very broad, there are practical constraints that determine whether structuring is feasible in a given case. The table below summarises the key considerations and how they are addressed.
| Constraint | What It Means | How It Is Addressed |
|---|---|---|
| No verifiable valuation | If the underlying has no market price, no cash flow model, and no recognised appraisal methodology, a NAV cannot be calculated and the note cannot be priced or reported. | Use a third-party appraisal, DCF model, or contractual cash flow schedule as the valuation basis. Specify in the term sheet how NAV is calculated and by whom. |
| Regulatory restrictions | Certain assets are restricted from being held by specific investor categories (e.g., certain leveraged or complex products for retail clients without FinSA opt-out). Some underlyings may require additional disclosure. | Restrict distribution to professional and institutional investors, or obtain retail opt-out under Art. 5 FinSA. Prepare a KYC where required. |
| Custody ineligibility | If the underlying cannot be held in a Swiss SIS-connected custody account and cannot be referenced via an SPV, the settlement chain breaks. | All Onvest products settle via SIX SIS using a Swiss ISIN. The underlying is managed separately; only the note sits in the investor's custody account. |
| Transfer restrictions | Some assets (private company shares, certain loan instruments) have contractual transfer restrictions that limit how freely the issuer can hold or trade them. | Confirm transfer mechanics at term sheet stage. SPV or pledge structures are sometimes used to achieve the required legal form. |
What This Means for the Onvest Platform
Onvest's three product types - AMC, Tracker Certificate, and CLN - together cover the full range of practically structurable underlyings. Smart Edge PCC Limited handles collateral segregation for every product type, so promoters do not need to establish their own legal vehicles. In practice, this means:
- An asset manager with a liquid equity or bond strategy can launch an AMC in a matter of weeks, with no fund registration and no bespoke SPV required - the product occupies its own cell within Smart Edge PCC.
- A strategy developer with a rules-based algorithm can issue an AMC together with a regulated Portfolio Manager - the underlying strategy is held in a dedicated Smart Edge cell referenced by the note.
- A real estate developer raising debt financing issues a CLN through Smart Edge PCC: a dedicated cell is established for the transaction, ring-fencing the collateral by statute from all other products on the platform.
- A family office consolidating illiquid assets - private equity, real estate, infrastructure, art - into a single AMC does so through a Smart Edge cell, making the entire portfolio bankable and transferable within the Swiss custody ecosystem without a standalone fund or SPV.
- An entrepreneur or infrastructure developer bringing a project to capital markets issues through Smart Edge PCC, where each project occupies its own legally segregated cell and investors in that note have no exposure to any other product on the platform.
The single most common reason a structuring conversation stalls is not the asset class - it is the absence of a defined valuation methodology. Promoters who arrive with a clear answer to "how will the NAV be calculated, by whom, and how often" can typically move from term sheet to issuance in four to six weeks.