Frequently Asked Questions
Private market investments are a "must have" component of a modern diversified portfolio, looking beyond stocks and bonds. The Stableton Unicorn Index AMC offer a perfect way to get started.
How to Invest/Redeem?
How can I invest?
You can invest directly via your bank or broker by purchasing the product via Swiss ISIN (CH1234846777). The Actively Managed Certificate (AMC) is open for public distribution in Switzerland, and the product will be held in your bank or brokerage account. Orders should be placed as market orders or with a sufficiently high-limit order to ensure fees are covered. The subscription is possible on a weekly basis.
How can I exit / redeem?
The certificate can be redeemed (to the issuer), or transferred to another buyer. Redemptions are possible on a weekly basis and require a notice period of 3 days. In the first 12 months after the product launch, no redemptions are possible. However, it may be possible to sell to other counterparties. Further restrictions may apply - for details please consult the factsheet. The product will likely also be listed (e.g. Vienna stock exchange) and we are working towards adding liquidity providers.
Is this product open for international investors?
Yes, international investors with a bank account in Switzerland are allowed to invest in the product, unless otherwise specified in the termsheet (e.g. not available for US persons). However, for the time beeing, the product is not actively promoted or offered beyond Switzerland. Therefore no tax reporting for other countries can be provided at this point in time.
What is the minimum investment amount?
What is the tax treatment in Switzerland?
Stableton cannot give tax advice. Please refer to the Final Terms (Termsheet). Excerpt: For individuals holding the Product for private investment purposes with tax domicile in Switzerland: The portion of income realised at the underlying Strategy-Level attributable to their respective portion in the underlying Strategy-Level will be subject to Swiss income taxes on an annual basis (by financial year end) or upon redemption. Gains and losses realised at the Strategy-Level, as well as gains and losses derived from the sale of the Product, should be considered as income tax-free private capital gains and non-tax-deductible private capital losses respectively. The Product is not subject to Swiss withholding tax. The Product may be subject to Swiss stamp duty of up to 0.15% on the primary as well as the secondary market. There is no Swiss stamp duty upon redemption of the Product. For Swiss paying agents, payments under the Product are not subject to the EU savings tax.
What is the subscription frequency?
The product allows for frequent subscriptions and is therefore also ideal for savings plans or frequent investments. Subscriptions are possible on a weekly basis and require a notice period of 3 days.
What are the fees?
For more details on the fees, please consult the further information and the factsheet provided on the page of Disruptive Issuance.
Is there a lock-in?
Yes, for the first 12 months, the product cannot be redeemed. Details can be found on the factsheet or Final Terms. There may still be a secondary market in the certificate units and a seller could sell the units to another buyer at a price different than the NAV.
How do liquidity restrictions work and why are they in place?
The liquidity restrictions are in place to protect the product from rapid outflows to avoid any firesale of assets and, therefore, ultimately benefit the investors in the product. Under normal market conditions, we expect that investors should be able to redeem their entire position as per the weekly redemption cycle. If a high number of investors want to redeem simultaneously, and there are only limited inflows in the product for the same dealing day, redemptions could be delayed, as specified in the termsheet, to allow for an orderly liquidation of the underlying assets.
How does the weekly subscription process work?
The subscription frequency is weekly with a 3-day notice period. You place the order with your existing bank or broker. Orders coming in before the weekly cut-off on Tuesday 16:30, are processed on that weeks Friday with the NAV as of Friday and settlement t+2 (else the week thereafter). Orders should always be placed as market orderes, as the exact NAV is not known at the time of transaction. If a limit order is selected, it must be sufficiently high to also cover fees.
What does Stableton do?
Stableton is an award-winning fintech platform (Swiss Fintech Award 2022 in the Growth Stage Startup category) and investment firm specializing in private markets. The platform offers institutional and qualified investors unique investment opportunities in late-stage growth companies, with enhanced liquidity.
In what areas does Stableton invest?
Stableton has a clear focus on growth-stage companies (Growth Equity), typically after Series B to pre-IPO financing rounds. Within its actively managed products, Stableton focuses on the fintech, consumer, mobility, and B2B SaaS sectors. Verticals include Connected Humans, Future of Finance, Saving Planet Earth, Next-Generation Mobility, Future of Work, Food Revolution, Disruptive Technologies, Creator Economy, Healthcare Revolution, and Circular Economy.
The Morningstar® PitchBook® Unicorn Select 20 Index™
What is the Morningstar® PitchBook® Unicorn Select 20 Index™?
The Morningstar® PitchBook® Unicorn Select 20 Index™ was created with Stableton by Morningstar and is used as a benchmark for Stableton's unicorn investment offering. It relies on the same methodology as the Morningstar® PitchBook® Global Unicorn indexes, but includes only 20 components, is equally weighted, and targets developed markets. While maintaining a solid representation of the private market, those adjustments enable Stableton to carry out the investment strategy to mimic the index holdings as closely as possible and to potentially achieve the index performance over time.
How has the index performed historically?
Over the last 10 years, the the Morningstar® PitchBook® Unicorn Select 20 Index™ outperformed public equities significantly (22.2% vs. 8.2% p.a.) while benefiting from a lower max drawdown (-19.5% vs. -25.1%). For further details, please consult the Morningstar® PitchBook® Unicorn Select 20 Index™ page. For this comparison, public equities are represented by the Morningstar® Developed Markets Target Market Exposure Index™, which covers public equities in developed markets.
The index has just 20 constituents, is this a fair representation of the private market?
Yes, comparing the “Select 20” index to the full Morningstar® PitchBook® Unicorn Global Index™ (more than 1000 holdings) shows a similar performance. For the full global index, the characteristics of diversification are wholly applicable. It has a lower max drawdown, but the overall level of performance is also lower. The Select 20 index is a good representation of the market, although not perfect.
How does Morningstar Indexes calculate the value of a firm?
The NAV of the index and the value of a company in it is determined by a proprietary methodology by Morningstar Indexes. Details and further resources can be found in the Morningstar Index Rulebook.
What companies are in the index and does it change?
Yes, the composition can change at each rebalancing. The index seeks to tracks the 20 most valuable unicorns and the current composition is published online by Morningstar Indexes.
How does Morningstar Indexes collaborate with Stableton?
Morningstar developed the Morningstar® PitchBook® Unicorn Select 20 Index™, publishes and calculates it. Stableton developed a product, aiming to achieve the performance over time and as such aims to mimic the holdings of the benchmark index.
The Stableton Unicorn Index AMC
What happens when a privately-held company goes public (has an IPO)?
If a company goes public (IPO) the company would be removed from the index as per the Morningstar® PitchBook® index guidelines. This would be reflected in the next regular rebalancing. Stableton would then aim to sell the shares in the public markets (pending a potential lock-up of typically 3 to 6 months) and deploy the capital in the new index constituent.
Where can I find more details?
Further details (Factsheet, Final Terms, KID) can be found on the page of Disruptive Issuance.
How is the performance replicated?
Stableton's investment team aims to build a portfolio containing the companies in the index with the target weight of around 5% each (as determined by the benchmark index). When there are changes in the index composition (constituents or weights), Stableton aims to conduct the respective trades to adjust the holdings. As the underlying markets are not liquid, there may be deviations from the target weights.
What is the target life / maturity of the Stableton Unicorn Index AMC?
The product is open-ended and has no target maturity.
Are dividends distributed?
No, any exits proceeds are re-invested and gains are accumulated.
Who is the investment / strategy manager?
Stableton executes the pre-defined strategy and aims to achieve the performance of the Morningstar® PitchBook® Unicorn Select 20 Index™, over a period of time.
How is the NAV of the product calculated?
The Stableton mark-to-market NAV model uses five different pricing inputs to calculate the daily NAV of the individual portfolio holdings:
Secondary daily price, provided by a specialized data provider combining all available price sources into a unified pricing;
Historical secondary transaction price, provided by a specialized data provider based on observed historical transactions on their platforms or as reported by platform users;
Stableton effective entry price, prices of most recent Stableton transactions;
Official primary round valuations, which is considered if there was a recent
official capital round; and
Morningstar valuation, which uses past deals (primary rounds), private market
comparables and public market comparables as inputs.
Secondary daily price is obtained from a specialized data provider that combines various price sources into a unified pricing. This data, shared by pre-approved providers, allows for the calculation of the mark-to-market NAV. It is considered reliable as service providers report daily market price updates, indicating sufficient liquidity in the underlying assets. Stableton relies on these providers as they serve as neutral third-party valuations by aggregating transacted prices and offers in the market.
In cases where secondary daily price is not available through a secondary provider, Stableton prioritizes the latest primary deals, historical secondary transactions, and its own entry prices. The NAV is then determined based on the timing and volumes of these transactions. Official primary round valuations hold seniority over other inputs if they occurred more recently. To account for scattered data, Morningstar valuations are utilized to capture potential price changes over time.
Finally, If any of the companies in the portfolio goes public but is required to remain in the portfolio due to a lock-up period, the valuation of the position will be determined based on the listed price on a specific day. This will be calculated by multiplying the number of shares held in the portfolio by the price per share on that particular day.
Still have unanswered questions?
Introducing the Stableton Unicorn Index AMC
Learn how an allocation to the most exciting and rapidly growing privately held companies can help to boost your portfolio.