The new generation of actively managed certificates (AMC)

Actively managed certificates (AMC) are nothing new on the market for structured products. They have become increasingly popular in recent years due to their flexibility, profitability, and application options and are following a steady growth path. Unlike most other structured products, AMCs have unique features that allow you to select and fine-tune the components of your underlying strategy actively.

“The ideal platform for your investment strategy”

There are several ways that asset managers can manage their clients’ assets. Managing individual customer accounts is not scalable and can become inefficient as the number of customers increases. In addition, various investments such as hedge funds, real estate funds, and private equity funds have a high minimum investment amount or are restricted to institutional investors. These restrictions are why most asset managers develop their own investment instruments. Known and widespread fund structures are, however, in many cases, not accessible or appropriate due to various restrictions. For example, several months of start-up time, high installation and operating costs, low flexibility, marketing restrictions, and official restrictions. A fund structure is not sufficient, in particular for investment vehicles with an AuM of less than EUR 10 million. The alternative that overcomes all of these limitations and has become popular in the past decade is the Actively Managed Certificate (AMC).

Actively managed certificates are advertised as the fastest, most flexible, and most profitable investment vehicle available today. However, most AMC providers limit you to the asset classes to invest and the number of trades you can execute per day. AMCs are now mature and have proven to thrive over funds or other structured products. The legal aspects are very simple and offer the asset manager a seamless integration into the client’s portfolio. For external asset managers, it offers a way to stand out from your competition. Experience in managing certain asset classes can be obtained through AMC. Other solutions like offshore or onshore funds require a lot of time and capital. They require huge resources, which is often not an option. AMCs are also of great interest to customers. They offer real market diversification and timing. Whenever an asset class emerges as an opportunity, the AMC responds in a way that captures customer objectives.

Unlike traditional funds, AMCs can be customized to respond quickly to customer needs. They show excellent transparency and are easy to monitor. They have very competitive payment structures in comparison to traditional funds.

AMCs enable portfolio diversification and the generation of alpha. The primary strategy is strict stock selection and asset allocation. They are used to adapt to opportunistic market situations. AMCs are relatively easy to put together, so they offer an excellent opportunity to react quickly to unforeseen market developments.

Flexible investment instruments, low cost & easy to configure.

Blue Capital SA acts as a market maker and issuer of actively managed certificates, continuously calculating the strategy’s performance. We help our clients rebalance their investment portfolio in the most flexible way possible.

Unlike their fund counterparts, they are established within 2-4 weeks and offer continuous cost advantages through efficient management. Each Blue Capital AMC is issued with a Swiss ISIN in the Swiss clearing system, making them transferable collateral that can be traded on the OTC interbank market and through the Vienna Stock Exchange.

Our goal at Blue Capital SA is to help you make the right decisions for the assets you want to manage and provide you with the most flexible and profitable investment vehicle available: the Actively Managed Certificates.
The new generation of actively managed certificates is advertised as the fastest, most flexible, and most profitable investment vehicle available today. Many AMC providers limit you to the asset classes to invest as well as the number of trades you are allowed to execute per day.

The new generation of actively managed certificates (AMC) With actively managed certificates, you can implement your investment strategy quickly and directly. There is no asset strategy or restriction within the alternative investment portfolio underlying Actively Managed Certificates. This means you can structure all hedge fund strategies within a Blue Capitals Active Management certificate.

The underlying assets are managed at our own discretion; quality monitoring is key to the success of this type of solution. This, in turn, depends on the issuer’s internal skills in accessing the underlying asset classes and eligible funds, but also in the execution mode. The transparent, simple, and inexpensive access to derivatives and leveraged products makes it particularly possible to control market risk by combining long and short vehicle as part of a market-neutral approach.

Since an AMC is a structured product, the issuing bank is also the counterparty to its customer. This risk is intensified because, depending on the type of certificate, the issuer is also the buyer of the derivative contained in the certificate. “Counterparty risk is managed by setting up a separate account where the guarantees are placed so that the owner will be refunded in cash in the event of a failure of the ‘broadcaster.’

After all, an AMC certificate is not an investment fund within the meaning of the Federal Act on Undertakings for Collective Investment (CISA). They are, therefore, not subject to FINMA supervision. In Switzerland, however, AMCs are subject to special requirements to ensure transparent pricing, including the requirements of the SEIS stock exchange guideline for specific structured debt securities (DDSS) in Switzerland, which apply from May 2019.