Spiko Swiss Franc
Grow your swiss francs every day, powered by the world’s most trusted banks.
Smart cash management
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Built for safety
We team up
with industry leaders
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We are regulated and supervised in France under EU law
Transparent by design
How Spiko Swiss Franc works
To reduce capital requirements, banks seek exposure to the performance of financial instruments - such as listed equities - off-balance-sheet.
Spiko Swiss Franc steps in by selecting, from among leading banks, the one offering the most favorable terms to acquire the financial instruments it seeks exposure to.
Each day, the portfolio's returns are passed on to the selected bank, while Spiko Swiss Franc receives a guaranteed daily yield in exchange. This contractual arrangement between Spiko Swiss Franc and the bank is known as a Total Return Swap.
In the unlikely event of a bank default, Spiko Swiss Franc would liquidate the portfolio. Proven since 2014, this strategy has never experienced a default.
Underlying assets
Your cash benefits from double protection: the creditworthiness of a Tier 1 bank, and, should that bank fail, full ownership of a portfolio of financial assets that can be easily liquidated.
Product characteristics
FAQ
What are the fees for using Spiko Swiss Franc?
The only fee for using Spiko Swiss Franc is an annual management fee of 0.15% on your deposited funds, calculated daily on a prorated basis. The interest displayed on our website or in our app is always shown net of fees. There are no fees for maintaining a Spiko account, and deposits and withdrawals are free of any transaction charges. Last but not least, there are no custody fees.
What are the risks and how are my funds protected?
Your funds are backed by a Tier 1 bank and are at risk only in the unlikely event of its default. In such a case, your funds remain protected by the portfolio of securities wholly owned by Spiko's funds, which would be promptly liquidated to minimize any potential losses. In the event of residual losses following the liquidation of the securities portfolio, Spiko Euro would hold a senior claim on the bank.
How would I access my funds if Spiko goes bankrupt?
First and foremost, you have no financial exposure to Spiko’s insolvency, as your funds are never on Spiko’s balance sheet. When you deposit funds, they are transferred directly from your checking account to the depositary bank. Likewise, withdrawals are sent straight from the depositary bank to your designated bank account. The account must be in your name, as Spiko cannot be used as a payment method.
That said, Spiko’s insolvency could affect you operationally, as the platform might no longer be available for placing withdrawal orders, for example. Fortunately, Spiko’s products are regulated and supervised by the French Financial Markets Authority (AMF), and their operation does not depend on the distributor. In practice, you can always place your withdrawal orders through the management company by phone or email.
Which banks do you partner with to negotiate interest terms?
Only global systemically important banks. Specifically: BNP Paribas, Société Générale, Crédit Agricole CIB, Natixis, Goldman Sachs, J.P. Morgan, Citi, Morgan Stanley, Barclays, UBS, BBVA, HSBC, Santander, and Bank of America.
Why are banks willing to offer a rate higher than the risk-free rate?
Holding financial instruments on its balance sheet is costly for a bank due to the associated regulatory capital requirements. A bank is therefore willing to pay a rate above the risk-free rate to an institutional intermediary like Spiko Euro, Spiko Dollar, Spiko Pound, Spiko Swiss Franc to hold these financial instruments on its behalf. This is a mutually beneficial arrangement: Spiko's funds aims to earn an attractive return on cash, while the bank gains exposure to the performance of a portfolio of financial instruments without carrying it on its balance sheet.
How are cash flows handled between Spiko Swiss Franc and the bank paying the interest?
Amundi records the market value of Spiko Swiss Franc's equity basket every afternoon.
- If the market value has increased compared to the previous day, Amundi sells the number of shares required to bring the basket back to its initial value and transfers the proceeds to BNP Paribas.
- If the market value has decreased, BNP Paribas pays the shortfall so that Spiko Swiss Franc can repurchase shares and restore the basket to its initial value.
- Regardless of market conditions, BNP Paribas pays the interests.