Actively Managed Certificates (AMC) offer flexibility, adaptability, personalisation and significant advantages for both investors and external asset managers.
AMC stands for Actively Managed Certificate and is an investment vehicle that combines the features of structured products and actively managed funds. It provides a 'wrapper' for a specific investment strategy or asset. The certificates are sold to investors, and the capital is used to implement the strategy, allowing investors to participate in the performance of the portfolio.
Unlike many structured products, which are tied to fixed asset compositions, AMC are dynamic. The strategy manager can change the composition of the AMC as deemed or desired within the predefined portfolio universe to achieve investment objectives. This allows great flexibility, for instance to react rapidly to changes in market conditions.
AMC offer several benefits over mutual funds and other structured products, including:
1. Flexible strategies: external asset managers have the discretion to adjust and adapt their investment approach in real time, according to market conditions and investor needs.
2. Speed of launch: the creation of an AMC can be done quickly, allowing external asset managers to take advantage of well-timed investment opportunities.
3. Wider range of assets: AMC can include a variety of asset classes, from traditional equities and bonds to alternative investments such as commodities and digital assets.
4. Reduced regulatory burden: the simplified structure typically involves less red tape than traditional funds, making compliance less onerous.
5. Cost-efficiency: due to their simpler structure and lower regulatory requirements, AMC often involve lower set-up and management costs.
AMC are ideal for professional investors and offer different advantages:
1. Adaptability: due to their flexibility and customisation, AMC are particularly suitable for professional and institutional investors who require specialised investment solutions.
2. Lower minimum investment thresholds: AMC often allow lower minimum investments, making them accessible to a wider range of investors.
3. Transparency and oversight: the use of a bankable ISIN enables investors to monitor performance, providing clear and timely information on how the investment strategy is evolving.
4. No bank-issued risk: current platforms allow the creation of AMC independent from bank risk, eliminating the issuance risk commonly associated with bank-guaranteed investment products.
AMC are the ideal solution for professional investors, external asset managers and family offices. These investors often seek customisable, flexible and easily scalable investment solutions that can be tailored to specific risk profiles and objectives.
AMC typically operate in a less intricate regulatory environment than traditional investment funds, which makes the set-up process quick, cheaper and easier to manage, although the precise regulatory requirements may differ by jurisdiction.
Actively Managed Certificates (AMC) represent an evolution in investing. The future of AMC is promising as investors are looking for tailored investment solutions in a rapidly changing financial market. Their ability to adapt quickly to shifts in the investment landscape makes them an increasingly popular financial instrument.
Banca Credinvest offers investment strategies through AMC, providing significant advantages for both investors and external asset managers. Flexibility, personalisation and transparency of AMC make them an attractive solution in financial investments.