What is an (Actively Managed Certificate) AMC?

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AMC stands for Actively Managed Certificate. In the past years, the demand for AMCs has experienced tremendous growth among external asset managers and banks. Nowadays, AMCs are considered an exceptionally popular product solution.

Why are AMCs (Actively Managed Certificates) Popular for Asset Managers? 


With an AMC, the Asset Manager (AM) is able to run the entire portfolio with only one instrument in an extremely efficient way and at a very attractive price.

Clients can structure their off-balance-sheet, risk-segregated trading strategy. The certificate can be easily distributed among qualified investors. 

 

What are the AMC (Actively Managed Certificate) Characteristics? 


AMCs can be used for the implementation of strategic model portfolios as well as for tactical allocations. Compared to traditional AMCs issued by banks, AMCs issued out of SPVs do not bear traditional issuer risk. The AMC is issued with an ISIN in a Clearing System, making it a tradable security.

 

Why are AMCs in such High Demand?

The underlying idea of an AMC is the same as for an investment fund: pool investor money for a specific investment objective. At a closer look, AMCs offer many advantages that explain their popularity in recent times.

 

Advantages in Comparison to Traditional Asset Management Processes:

  • Massive efficiency gains and cost savings
  • Model portfolio can be implemented  for any client – also for small ones
  • Economies of scale: professional management of hundreds of clients possible, whereby all customers are treated and billed equally
  • Building up of a track record 
  • Access to an exclusive universe of institutional instruments 

Advantages in Comparison to Funds:

  • Significantly lower set-up and running costs
  • Excellent time to market
  • Higher flexibility in the product design
  • Substantially lower seed money
  • Regulated but typically does not fall under the 
    Collective Investment Schemes Act (CISA)

Would you like to learn more about AMCs? Download our free e-brochure, where the Actively Managed Certificates (AMCs) are explained and learn all there is to know about the topic! 

 isp group actively managed certificate amcs brochure

Contact our AMC team. Our AMC team is located in Switzerland, and more specifically in our headquarters in Zurich.  Meet our AMC Swiss team>

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This document is prepared by ISP Securities Ltd., Zurich, exclusively for qualified/professional investors. It is designated to the person having received it from a representative of ISP Securities Ltd. and not intended for any other person. This document must not be made publicly available. This document is for information purposes only and is neither intended for nor targeted at any person who by domicile or nationality is prohibited to receive such information according to applicable law and regulations. This document is not intended to constitute an offer or solicitation nor a recommendation or advertisement for the purchase or sale of products or services and it is neither legal nor investment advice. While ISP Securities Ltd. makes reasonable efforts to obtain information from sources which it believes to be reliable, ISP Securities Ltd. makes no representation or warranty as to the accuracy, reliability or completeness of the information.
Unless otherwise stated, all figures are unaudited. The development of the values mentioned in this document originates in the past. Past performance is no guarantee for future performance. Each investment bears risks, such as value and profit fluctuations. Investments in foreign currencies may be subject to currency exchange rates. Particularly, ISP Securities Ltd. recommends that the recipient, if need be by consulting professional guidance, assess the information in consideration of his personal situation with regard to legal, regulatory and tax consequences that might be invoked. None of the information contained in this document constitutes financial advice or analysis within the meaning of the Swiss Bankers Association’s Directives on the Independence of Financial Research.