What is the X-Note®?
The X-Note® is a new product that solves some of the more difficult challenges faced by fund managers. Essentially, the X-Note provides an elegant and efficient way to securitize a collective investment such as a UCITS or AIF.
X-Notes, plc is an Irish investment company that invests into designated investments. To raise investment capital, X-Notes, plc issues debt instruments, called X-Notes, to investors that are ISE listed Eurobonds, each with its own ISIN. Every X-Note Series is invested 1:1 directly into a specific designated investment (i.e. the Euro denominated institutional share class of a fund). As a result, the NAV of each incremental X-Note directly mirrors the performance of the underlying designated investment, less fees. Technically, each X-Note Series is a unitized Central Bank of Ireland regulated, non-recourse, perpetual, debt security (Eurobond) issued by an independent Section 110 Company, traded across Euroclear and held in trust.