Actively Managed Certificates (AMCs) are becoming increasingly popular

Given that they represent flexible and cost-efficient investment vehicles, it is no wonder that AMCs are emerging as a product of choice for launching investment strategies.

As an asset manager, you need scalable, efficient solutions for managing clients’ wealth. If you launch your own investment strategy, you would be able to reach larger numbers of clients with the one Actively Managed Certificate (AMC).

In a nutshell: What exactly is an AMC? © Video: Vontobel.

Actively Managed Certificates—what are they?

AMCs are Tracker Certificates which allow investors to participate in the performance of the underlying index designed by the index sponsor. An AMC is a structured product. It tracks the underlying index, which is managed on a discretionary basis by the index sponsor—enabling active management of a chosen investment strategy.

As an investment manager, or index sponsor, you tailor the solution to your clients by selecting index components from a broad range of asset classes available—according to the investment strategy defined at the start of the process. You make any adjustments to the index composition, as and when you deem necessary (rebalancing).

Pie chart: type of indizes covered by AMCs

Index universe modularity

¹Structured products issued by Vontobel and third-party issuers

Learn more about AMCs in this video with our experts:

Webinar with our Structured Solutions & Investment Specialists Cyril Bollier and Michael Haupt. © Video: Vontobel.

AMC vs. Funds

For one reason or another, fund structures are often not an investment option: high levels of minimum investment, regulatory limitations, high set-up costs, lack of flexibility and protracted time-to-market, to name a few. In contrast, AMCs can be set up in weeks; plus, they are issued with ISIN numbers making them transferable. One further convincing argument for choosing these products is the flexibility which you have in tailoring design: you have a broad variety of possibilities available to you from which to select index components (see chart above).

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Cogs in close-up: advantages of AMCs, what does an AMC cost, difference between funds and an AMC

Time to Market

With an AMC, an investment strategy becomes investable within weeks

Swiss guarantor

Swiss guarantor - Vontobel Holding AG, Zurich with solid capital underpinning

Costs

Low set-up costs: depending on volume and underlyings

Tradability

Additional active secondary market for AMCs

AMC↔Funds

AMC volume with lower entry barriers.
AMC: >3 mn vs. Fund: >50 mn (in CHF)

Speed and convenience: Vontobel Index Management Tool

As index sponsor, you will be able to manage the AMC actively and efficiently using our intuitive web-based platform, with its broad variety of constituents and a real-time overview of your index, including calculations. The tool enables speedy adjustment of your index with just a few clicks.

So, you can concentrate on your core competency: designing and conducting discretionary management and monitoring investment strategies.

Personal consulting

How well is your portfolio positioned for the current market environment? Get in touch with your advisor to discuss what investment opportunities may suit you.

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