1) Instrument Owner(s) through its authorized representative shall come on board as co-owner with limited rights in the Securitization Vehicle at Luxembourg owned and operated by our Trading Desk.
2) Instrument Owner would allow the Trading Desk to collateralize the asset-backed financial instrument(s) and thereupon issue asset backed securities. Goldman Sachs and PIMCO Global would underwrite these securities for institutional investors like Sovereign Wealth Funds, Hedge Funds, Credit Institutions and other financial institutions.
3) Funds raised through these asset-backed securities would then be used for trading and investment across global capital markets.
4) Returns generated shall be paid out to institutional investors, Instrument Owner and owners of the Trading Desk.
STANDARD PROCEDURE FOR COMMENCEMENT OF THE PROGRAM
5) Instrument Owner must pass a board resolution to express their intent to invest with the Trading Desk, and participate in this structured investment program. They must authorize one Director who would represent the Instrument Owner(s) for all purposes related with this program.
6) An LOI shall be presented by the Instrument Owner(s) to the Trading Desk (format shall be provided by the Trading Desk)
7) Upon receipt of the copies of the Board Resolution and Authorization Letter along with LOI, KYC documents of the said authorized Director and KYC documents of Instrument Owner(s), official Private Placement Memorandum (PPM) and Luxembourg Securitization Vehicle Co-Ownership Agreement (SVCA) would be issued.
8) Once these preliminary formalities are complete, KPMG on behalf of the Trading Desk and Instrument Owner would complete procedures to have Instrument Owner onboarded as co-owner of the Securitization Vehicle with limited rights and also carry out the formal collateralization procedures in accordance with HSBC, Luxembourg.
9) The Instrument Owner(s) must provide total and unconditional consent and rights to HSBC and the Trading Desk to use the financial instrument(s) as collateral to further issue asset-backed securities.
10) Asset-backed securities would be underwritten by Goldman Sachs and PIMCO Global and funds raised through subscription of these securities shall be deployed through Goldman Sachs and PIMCO Global in financial markets.
11) There is a minimum lock-in period of 03 years and can be extended up to 05 years.
4) Returns generated shall be paid out to institutional investors, Instrument Owner and owners of the Trading Desk.
INVESTMENT RETURNS
12) All investment returns are subject to market risks. However, through careful mathematical design of the investment strategies and deployment of technology infrastructure provided by IBM, AWS, EOS (satellite data) and Bloomberg, it has been possible to create hybrid securities having combination of various traditional and esoteric asset classes and their derivatives such that predictable returns are generated with inherent tail risk hedging.
13) Instrument Owner(s) can expect notional returns in the range of 35%-45% annually. Liquidity criteria would be provided by Goldman Sachs and PIMCO Global in accordance with the risk management framework prescribed by the Trading Desk.
COSTS INVOLVED IN COMMENCEMENT OF THE PROGRAM
14) Multi Compartment Securitization Vehicle formation costs would be borne by the Trade Desk
https://luxembourg-securitisation.com/services-and-pricing/
15) CSSF Luxembourg co-ownership charges for securitization vehicle to be paid by Instrument Owner(s) on behalf of the appointed representative
https://www.loyensloeff.com/lll-securitisation-vehicles-brochure-2022.pdf
16) All charges relating to compliance, due diligence and regulatory charges are to be borne by the Trade Desk.
Fundcracker works with the top rated banks, asset management companies and other Financial Institutions all over the world and does not tolerate money laundering and supports the fight against money launderers. In particular, we follow the guidelines outlined in the US “Patriot’s Act” and by US regulators.
Fundcracker has KYC policies in place in order to deter people from laundering money. We are obliged to conduct a comprehensive KYC “Due-diligence to comply with international banking rules, AML Policy and with the rules established by our various principals and the domestic laws of their countries.
These policies include:
· Ensuring clients have valid proof of identification
· Complete and valid KYC documents
· Maintaining records of identification information
· Determining clients are not known or suspected criminals or terrorists by checking their names against lists of known or suspected criminals/terrorists
· Informing clients that the information they provide may be used to verify their identity
· Closely following clients’ money transactions
· Not accepting cash, money orders, third party transactions, exchange houses transfers or Western Union transfers.
We are obliged to conduct a comprehensive KYC “Know Your Client” investigation to comply with international banking rules, money laundering conventions and with the rules established by our various principles and the domestic laws of their country.
