Actively Managed Certificates (AMCs) are structured products that pursue a dynamic approach and allow you to actively manage your chosen investment strategy via an index.
Managers of this type of products launch a specific investment strategy quickly and easily and reduce time-to-market to a few weeks.
AMCs have become more and more popular these past few years. They combine the advantages of structured products with features that allow flexible adjustments of the components within the underlying. In contrast to investment funds they can be structured in a fast and cost-efficient way making them the investment product of choice for launching investment strategies.
But how does the launch of an Actively Managed Certificate work?
Actively Managed Certificates are derivative securities: This means that AMCs are not collective investment schemes but are securitised portfolios that are dynamically adjusted at the discretion of an investment manager. They can be issued as on- or off- balance sheet certificates and are either privately placed or exchange-listed. Any AMC has an Underlying with a separate ISIN number it is linked to.
The global AMC market exceeds $1 trillion in assets under management, with the most significant growth happening in the last three years. Depending on the jurisdiction, these products are also referred to as Exchange Traded Notes, Dynamic Equity Notes, Strategy Notes, Strategy Index Certificates, and Actively Managed Trackers.