Liquid

AMC on SW Multi Asset AI Flagship Leverage Strategy

Note: GenTwo is a platform provider for structured products. This information is intended for professional investors only.

What is this product?

An actively managed certificate that gives professional investors exposure to an AI-driven, systematically managed global multi-asset portfolio spanning equities, bonds and commodities. Structured as an open-end instrument in US dollars, it provides access to the strategy through a single security rather than requiring investors to assemble and administer the underlying positions themselves.

How does it work?

The certificate tracks a notional reference portfolio built on a core-satellite model, in which liquid exchange-traded funds form the core and individual highly liquid stocks act as satellites, alongside cash. Allocation is determined by the strategy manager’s machine-learning forecasting models, which draw on fundamental, macroeconomic and technical data, and the resulting portfolio is optimized and executed automatically within defined bands — up to 100% in equities, up to 35% in fixed income, up to 10% in commodities through gold ETFs, and up to 49% in cash during periods of market stress, with a single stock position permitted to reach 50% of the portfolio once leverage is taken into account. Investors hold a claim against the issuer rather than the underlying assets, and as an open-end structure the certificate has no fixed maturity, settling in cash on redemption or if the issuer or strategy manager exercises its right to terminate, with proceeds due ten business days after the final valuation date.

What is the underlying asset?

The certificate tracks the output of an AI-driven forecasting system, expressed in a dynamic basket of securities. The strategy manager’s machine-learning models take in fundamental, macroeconomic and technical data at differing frequencies and produce return forecasts across asset classes. Those forecasts feed a genetic optimization process that builds the portfolio, and execution follows automatically, with all portfolios traded within seconds. The instruments themselves are deliberately conventional: blue-chip listed equities and highly liquid equity and bond ETFs chosen for daily tradability, alongside gold ETFs and cash. The intelligence sits in the allocation, not in the assets.

Model-driven allocation has been established institutional practice for years, applied across asset classes by large investors. It is distinct from the more recent wave of generative AI and large language models, which has been taken up largely in research and analysis rather than in allocation itself; the machine-learning techniques used in strategies of this type considerably predate it.

Who is behind it?

The strategy is managed by Smart Wealth Asset Management AG, a Swiss portfolio manager licensed by FINMA and supervised by AOOS, established in 2016 to manage client assets on its own forecasting technology. The certificate is issued through a protected cell of Merlin Issuer PCC Limited, a Guernsey protected cell company that also acts as calculation agent, with ISP Securities AG of Switzerland as paying agent and Saxo Bank A/S of Denmark as custodian and broker. GenTwo AG provides the securitization infrastructure.

What kind of instrument is this?

An Actively Managed Certificate (AMC) is a structured product where the issuer actively selects, adjusts, and rebalances the underlying assets based on market conditions and strategy. Investors gain exposure to this managed portfolio through a certificate rather than owning the underlying assets directly.