Tracker Certificates are structured securities that mirror the Net Asset Value (NAV) of an underlying fund, strategy, or basket. They provide investors with bankable, ISIN-based access to investment opportunities that would otherwise require direct fund subscription.
The primary use case for Tracker Certificates is providing bank custody access to funds and strategies that are not directly bookable in standard custody accounts. This includes hedge funds, private equity funds, alternative strategies, and funds domiciled in jurisdictions not supported by the investor's custodian.
The Tracker Certificate is issued by an SPV and its NAV tracks the NAV of the underlying fund on a 1:1 basis (less the certificate's own fees). From the investor's perspective, the certificate behaves identically to a direct fund investment but can be held in their existing bank custody account.
Key advantages of Tracker Certificates include simplified investor onboarding (no direct fund subscription documents), standard settlement (Euroclear/Clearstream), familiar reporting formats, and compatibility with private banking portfolio management systems.
Tracker Certificates are widely used by private banks and wealth managers to provide their clients with access to institutional-quality strategies that would otherwise be inaccessible due to minimum investment thresholds, operational complexity, or custody constraints.
The structuring process for a Tracker Certificate follows the standard AMC issuance workflow: SPV compartment creation, ISIN allocation, legal documentation, and ongoing NAV tracking and administration.
This article is for informational purposes only and is intended for professional investors. It does not constitute legal, tax, financial or investment advice, nor an offer of any security.