Actively Managed Certificates (AMCs) are structured financial instruments that package an actively managed investment strategy into a tradable security. In essence, an Actively Managed Certificate (AMC) combines features of a traditional fund (professional portfolio management with dynamic asset allocation) with the format of a structured note.
Like other structured products, an Actively Managed Certificate (AMC) is typically issued as a debt security by a bank or special purpose vehicle, and its performance is linked to an underlying portfolio selected by a strategy manager.
Unlike passive index-linked notes, the underlying assets in an Actively Managed Certificate (AMC) are actively adjusted over time at the manager’s discretion in line with a defined strategy or investment mandate. This means the composition of the AMC’s reference basket can change (e.g. rebalancing sectors, adding or removing securities) without issuing a new instrument. The strategy’s value is tracked either via a synthetic strategy index or notional basket that the Actively Managed Certificate (AMC) replicates, allowing for real-time valuation as the manager makes changes
In summary, an Actively Managed Certificate is essentially a “wrapper” that turns an active investment strategy into a security. Investors gain exposure to a professionally managed portfolio via a single certificate, benefiting from the flexibility, liquidity, and transparency of an exchange-tradable instrument. For asset managers, it offers a way to deliver their strategy to multiple investors efficiently, outside the constraints of a fund structure. The result is a cost-effective, fast-to-market vehicle that has become increasingly popular in modern portfolio management.
Actively Managed Certificates have evolved from a niche concept into a rapidly growing segment of the structured products market over the past decade. They were first introduced as an innovation to provide tailored investment solutions beyond static index trackers. Early forms of Actively Managed Certificates (AMCs) emerged in the European structured product markets (notably Switzerland), but adoption was initially modest. In those years, structured notes were mostly passive, offering payouts linked to fixed baskets or indices. As technology and investor preferences progressed, the actively managed variant gained traction
Overall, the last decade can be characterized as the era in which Actively Managed Certificates matured from an experiment into a fast-growing, globally adopted product class. Investors’ desire for personalized, agile strategies, and issuers’ desire for faster time-to-market, created fertile ground for Actively Managed Certificates (AMCs). As a result, what began as a solution to package active strategies for a few wealthy clients has evolved into a worldwide trend, with trillions of dollars of underlying assets now managed via Actively Managed Certificates (AMCs). This growth story reflects a broader shift in finance toward flexibility, efficiency, and bespoke investment solutions.
At their core, Actively Managed Certificates function as “strategy tracker” notes: the issuer of the certificate promises to pay investors returns based on the performance of an underlying strategy portfolio, which is actively managed over time. Understanding the mechanics of Actively Managed Certificates (AMCs) involves looking at both the structuring of the product and the ongoing management process:
Structuring and Issuance: The life cycle of an Actively Managed Certificate (AMC) begins with an idea for an investment strategy and the collaboration between an asset manager (strategy provider) and an issuer (typically a bank or specialized SPV). The issuance process is relatively lean and quick: after agreeing on the strategy and terms, legal documentation (prospectus/term sheet, investment management agreement, etc.) is prepared, and the certificate can be launched often within weeks.
Once issued, the Actively Managed Certificate (AMC) gets an ISIN code and often a listing, making it a transferable security.
There are two primary structural models for Actively Managed Certificates (AMCs):
Ongoing Management: Once the Actively Managed Certificate (AMC) is live, the designated strategy manager actively manages the underlying portfolio on a continuous basis. In practical terms, the manager will send investment instructions to the issuer’s trading desk or platform to execute trades – for example, “buy 100 shares of X, sell 50 shares of Y” within the certificate’s portfolio. These trades are carried out within the AMC’s reference account, and the AMC’s value (net asset value per certificate) is recalculated accordingly. Many issuers provide an interface or portal for the manager to submit rebalancing instructions and enforce any pre-defined rules. For instance, if the strategy has limits (say no more than 50% in a single stock), the system will check compliance pre-trade.
Throughout each trading day, a number of operational activities occur behind the scenes to keep the Actively Managed Certificate (AMC) functioning smoothly:
Timeline: The typical lifecycle of an Actively Managed Certificate (AMC) spans from initial structuring and issuance through active management, periodic rebalancing, investor reporting, and eventually payout or maturity. Each stage involves coordination between the issuer and the strategy manager to ensure the product operates as intended.
In terms of investment strategies, an Actively Managed Certificate (AMC) is extremely flexible. The rules can be as simple or as complex as desired: some Actively Managed Certificates (AMCs) follow a discretionary trading strategy where the manager has wide latitude to pick assets (e.g. a global macro strategy that shifts allocations based on market outlook). Others follow a rule-based strategy (sometimes called an index strategy) where the manager implements a predetermined algorithm or set of criteria. Common use cases include:
The AMC’s documentation will spell out the allowable assets and strategy guidelines. Some are very broad (almost like a mandate: e.g. “the manager may invest in any stocks in MSCI World Index with up to 150% leverage”); others are specific (“portfolio of 20 named hedge funds, rebalanced quarterly”). In all cases, the manager’s active decisions drive the performance. The Actively Managed Certificate (AMC) itself typically does not have a fixed maturity (many are open-ended or perpetual certificates), although some Actively Managed Certificate (AMC) structures do set a maturity date at which the product ends and pays out the final portfolio value to investors. If an Actively Managed Certificate (AMC) has a maturity or when an investor redeems, the underlying assets are liquidated (or delivered in-kind if specified) to fulfill the payout.
Importantly, the manager is compensated via fees embedded in the AMC. A management fee (e.g. 1–2% annually of assets) is common, and in more sophisticated strategies a performance fee (e.g. 10–20% of profits above a hurdle) may be included. These fees are disclosed in the term sheet and are deducted from the certificate’s NAV. The issuer may also take an administrative fee. Investors thus should be aware that the gross performance of the underlying strategy will be reduced by these fees in the net returns they receive.
In summary, the mechanics of Actively Managed Certificates (AMCs) involve a close partnership between the strategy manager (providing investment decisions) and the issuer (providing the product infrastructure and execution). The manager’s active asset allocation is transmitted into the certificate via trading and rebalancing, and the issuer takes care of the plumbing: custody of assets, valuation, trade execution, and delivering the strategy’s performance to investors in the form of price changes or redemption value. This symbiotic process allows Actively Managed Certificates (AMCs) to function as a “fund in a note”, bringing the efficiency of capital markets to active portfolio management.
Actively Managed Certificates offer a unique mix of advantages and drawbacks, which can be best understood by comparing them to traditional investment vehicles (like mutual funds or ETFs) and other structured products. From an investor’s perspective, Actively Managed Certificates (AMCs) combine some of the best features of funds and structured notes, but they also carry certain risks inherent to structured products. From an issuer or manager’s perspective, they provide significant operational benefits but require proper risk management. Let’s break down the key benefits and risks:
In short, the benefits of Actively Managed Certificates (AMCs) lie in their efficiency, flexibility, and accessibility. Studies and industry use-cases have noted that Actively Managed Certificates (AMCs) “offer many advantages that explain their popularity in recent times,” including cost savings, efficiency gains, and access to exclusive institutional-only instruments. Compared to traditional funds, they have significantly lower setup and running costs, excellent time to market, higher flexibility in design, and require substantially lower seed capital. Compared to other structured products, they introduce active management which can adapt to conditions (whereas most structured notes have fixed payoffs regardless of market shifts).
When comparing Actively Managed Certificates (AMCs) to other structured products (like autocallable notes, principal-protected notes, etc.), the main difference is that Actively Managed Certificates (AMCs) do not offer predefined payoffs or protections – they are participation products, typically offering no capital guarantee. So if the underlying strategy loses 50%, the Actively Managed Certificate (AMC) loses 50%. In that sense, they share the full market risk of the assets (similar to owning a fund or ETF). Other structured notes might buffer losses or have fixed coupons; an Actively Managed Certificate (AMC) gives none of that, aside from what the manager actively does to manage risk. So an investor looking for capital protection would not get it from a plain Actively Managed Certificate (AMC) (though an Actively Managed Certificate (AMC) could be structured to include a protective component or put options as part of the strategy, at the cost of performance). Thus, relative to certain structured products, Actively Managed Certificates (AMCs) may be riskier due to full exposure to market moves. However, relative to directly managed accounts or funds, Actively Managed Certificates (AMCs) don’t really introduce more market risk – it’s the same assets, just in a note.
In summary, the risk-reward profile of Actively Managed Certificates (AMCs) can be very attractive, but investors need to be aware that they assume issuer credit risk and strategy execution risk on top of normal market risk. These risks can be mitigated – e.g. choosing collateralized issuers, transparent managers with track records, and liquid underlying assets – but not eliminated. As with any product, due diligence is key. Many institutions see the benefits outweighing the risks, which is why Actively Managed Certificates (AMCs) have become so popular, but they are indeed aimed at investors who understand the structured nature. It’s often said that Actively Managed Certificates (AMCs) are an extremely attractive alternative to conventional funds due to their unique character and versatility, provided that appropriate safeguards (like reducing counterparty risk and ensuring strategy discipline) are in place.
To put it succinctly: Actively Managed Certificates (AMCs) offer the agility and personalization that today’s investors and asset managers crave, but require careful structuring and trust in the manager and issuer. They stand as a flexible middle ground between bespoke managed accounts and off-the-shelf products, with a mix of corresponding pros and cons.
Financial institutions – from large banks to boutique providers – have increasingly embraced Actively Managed Certificates as a strategic product offering. For issuers, Actively Managed Certificates (AMCs) can be a powerful tool for product innovation, client acquisition, and fee generation. In this section, we look at why banks and other issuers are keen on Actively Managed Certificates (AMCs) and how they leverage them:
Rapid Product Innovation: In the highly competitive investment product market, banks constantly seek to offer the “next big thing” or to cater to specific client needs quickly. Actively Managed Certificates (AMCs) provide a platform to rapidly create new investment products without having to build them from scratch each time. An issuer can maintain a flexible Actively Managed Certificate (AMC) issuance program (a legal wrapper) and then simply slot in new strategies as they are conceived. This means a bank’s structuring desk can respond to market trends almost in real-time. For example, if clients suddenly want exposure to a new theme (say Artificial Intelligence companies), the bank can launch an Actively Managed Certificate (AMC) on a dynamic AI stock basket within weeks, whereas launching a fund or ETF might miss the window of opportunity. This agility is a competitive edge. One Swiss issuer noted that the fast time to market of Actively Managed Certificates (AMCs) is a “significant advantage” for introducing new investment ideas swiftly. By expediting product development, issuers can capitalize on short-lived market demands and be seen as innovators.
Customization for Clients: Actively Managed Certificates (AMCs) enable financial institutions to tailor solutions for different client segments with relative ease. A bank can create bespoke strategies for large institutional clients or even individual ultra-high-net-worth clients via Actively Managed Certificates (AMCs), essentially providing a customized managed account but in security form. The issuer can adjust risk levels, currencies, asset inclusion/exclusion as per client preference. The easy customization of Actively Managed Certificates (AMCs) allows issuers to target niche client needs that a one-size-fits-all fund couldn’t. This helps deepen client relationships – instead of saying “we can’t do that,” issuers can say “we’ll wrap it in an Actively Managed Certificate (AMC) for you.” Moreover, because the Actively Managed Certificate (AMC) is a transferable security, if one client no longer wants it, others can invest, so it’s sustainable to run even for a single client’s strategy (unlike a managed account that might be closed if the client leaves). In essence, Actively Managed Certificates (AMCs) empower delta-one and structured product desks to act almost like asset managers, delivering highly bespoke portfolios at scale.
New Revenue Streams: From a commercial standpoint, Actively Managed Certificates generate fee income for issuers. Banks typically charge an issuance/structuring fee and an ongoing administration fee for providing the Actively Managed Certificate (AMC) infrastructure (this may be a fixed annual percent of assets or embedded in the product’s fees). In addition, the issuer often handles execution of trades and can earn trading revenues or spreads from that activity. Market making the AMC’s secondary trading can also be a source of profit (the bid-ask spread). Essentially, Actively Managed Certificates (AMCs) allow banks to monetize their trading and structuring capabilities in a relatively low-risk way (since the market risk is passed to investors, the bank mainly earns fees for facilitating). As external asset managers and hedge funds increasingly use bank platforms to issue Actively Managed Certificates (AMCs), banks see a growing business line in offering “AMC as a service.” The more Actively Managed Certificates (AMCs) launched on their platform, the more recurring fees accrue. For example, a bank might earn a platform fee of 0.2% of AUM and execution commissions on each trade – with tens or hundreds of millions in Actively Managed Certificate (AMC) assets, this becomes significant, steady revenue.
Capital Efficiency: For on-balance sheet issuers, Actively Managed Certificates (AMCs) can be capital-efficient products. Because they are typically structured as delta-one (fully funded by investors), the issuer might not have to deploy much of its own capital aside from hedging transactions. Unlike lending or derivative trading, the credit exposure is on the investor side (investors lend to the bank via the note). The bank does assume some operational risk, but it’s not using its balance sheet to fund investments – investors’ money does that. So banks can earn fee income without heavily straining regulatory capital. That said, if the bank hedges by holding assets, it will have those on its balance sheet, but often these are client assets in a ring-fenced way. Off-balance sheet issuance is even more capital-light; the bank just earns fees for arranging without any asset impact. This makes the Actively Managed Certificate (AMC) business attractive from a return-on-equity standpoint.
Client Retention and Attraction: Offering Actively Managed Certificates (AMCs) can help banks retain talented managers and attract external assets. Private banks often have talented relationship managers or portfolio managers who might consider leaving to start a fund – instead, the bank can allow them to run their strategy internally via an AMC, creating a win-win. Similarly, independent asset managers might bring their business to a bank’s platform if the bank provides superior Actively Managed Certificate (AMC) issuance services. This brings in new assets under the bank’s umbrella (even if off balance sheet) and typically results in custody of the underlying assets at the bank, boosting assets under custody. Dozens of external managers may use a single bank’s Actively Managed Certificate (AMC) platform, leading to network effects and a sticky business (moving an existing Actively Managed Certificate (AMC) to another issuer isn’t trivial, so managers tend to stick around if service is good).
Innovation in Distribution: Actively Managed Certificates (AMCs) also allow issuers to offer strategies in jurisdictions or channels that funds might not reach. A bank can list an Actively Managed Certificate (AMC) on an exchange, and suddenly that strategy is accessible to any brokerage client who can trade on that exchange. This widens distribution beyond the bank’s own client base. We have seen some issuers list Actively Managed Certificates (AMCs) on multiple exchanges (SIX Swiss Exchange, European MTFs, etc.) to gather interest from independent financial advisors and retail investors. This distribution capability can generate volume and also raise the profile of the issuer’s structured product business. In effect, a bank can package its investment expertise and sell it broadly without managing a fund.
Risk Management and Control: From the issuer’s perspective, Actively Managed Certificates (AMCs) have the advantage that the market risk is borne by the investor, not the bank (aside from short-term hedging before passing through trades). The bank does not guarantee performance – it simply facilitates it. This is safer for the bank than products with principal protection or fixed payouts where the bank carries risk. The primary risk the issuer takes is operational and reputational. As long as they run the operations well, their risk is limited to their fee being lower if AUM falls. They do have to ensure compliance and not inadvertently become an investment advisor or fiduciary for the strategy (which they mitigate by clear contracts that the external manager is responsible for strategy). So in many ways, an Actively Managed Certificate (AMC) platform is a scalable, low-risk business for an issuer, compared to proprietary trading or lending. Each new Actively Managed Certificate (AMC) adds fee income without adding proportional risk (aside from the issuer’s general credit exposure to the assets if on balance sheet, which is usually hedged).
Use of Technology: Many issuers leverage specialized software (like platforms from vestr) to automate Actively Managed Certificate (AMC) lifecycle management. This means an issuer can handle a large number of Actively Managed Certificates (AMCs) and trades with a lean team. The digitization of Actively Managed Certificate (AMC) management (trade capture, NAV calc, client reporting) not only reduces error but also provides a selling point when courting asset managers to use their platform. For instance, some banks offer a web portal where the external manager can log in, see their AMC’s positions, initiate trades, and generate reports in a self-service manner. This reduces manual work for the issuer’s operations staff. All this contributes to operational scalability – issuers can grow the number of Actively Managed Certificate (AMC) programs without linear cost growth.
White-Label Services: A number of institutions now act purely as facilitators, letting others brand the AMC. For example, there are “white-label” issuance firms that a family office can use to issue an Actively Managed Certificate (AMC) under the family office’s chosen name, with the firm handling all backend. These arrangements bring in revenue for the issuing firm while the strategy provider essentially gets a turnkey solution. Issuers see this as tapping a new client segment – those who want to launch investment products but lack a license or infrastructure. By providing the legal vehicle and distribution, issuers earn fees and the strategy owner gets their product to market. It’s analogous to the platform approach in fintech but applied to structured products.
In practice, leading structured product desks have integrated Actively Managed Certificates (AMCs) as a core offering. They highlight benefits such as low set-up costs, low maintenance costs, fast time to market, and easy customization for each customer segment – all of which are compelling from a business perspective. Low setup and maintenance means the bank isn’t heavily invested for each product, but can reap ongoing fees. Fast time to market means they can outpace competitors with new offerings. Customization means they can win mandates from various client types (retail, institutional, external asset managers) by tailoring strategies via Actively Managed Certificates (AMCs). And the ability to include any asset class (even new ones like digital assets) means they can position themselves at the cutting edge of investment trends.
Revenue Example: A large bank might have, say, $5 billion equivalent across various Actively Managed Certificates (AMCs) on its platform (not an unrealistic number given the market). If it charges an average of 0.5% on those assets in various fees, that’s $25 million annual revenue, plus whatever trading spread revenue accrues. And because a lot of the process is automated, the profit margin on that can be high. Multiply by growth each year, and it’s clear why many banks find this business attractive.
Strategic Positioning: Offering Actively Managed Certificates (AMCs) also fits into the trend of banks providing holistic solutions. Instead of just executing trades or selling third-party funds, a bank can offer its own “products” via Actively Managed Certificates (AMCs) that encapsulate advisory strategies. This vertical integration (advice -> product -> execution) can increase wallet share of the client. For example, if a client trusts the bank’s investment advice, the bank can implement that advice through an Actively Managed Certificate (AMC) and earn the product fees too, rather than sending the client to an outside fund manager. It also gives the bank proprietary offerings that differentiate it from competitors (since each Actively Managed Certificate (AMC) can be unique).
Risk Control for Issuer: One thing issuers must manage is the reputational risk – if an Actively Managed Certificate (AMC) blows up or performs very poorly, it could reflect on the issuer even if the strategy was the manager's fault. Thus, issuers often have an internal approval process for Actively Managed Certificate (AMC) strategies to ensure they are not too outlandish or risky. They also impose certain limits (e.g. no extremely illiquid assets unless fully understood, or requiring collateral for certain underlying assets) to protect themselves and investors. But this risk is more about perception and client relationships than financial loss to the issuer. In fact, by providing transparency and disclosure, issuers protect themselves: the strategy manager is typically clearly identified, and documentation will state that the investor bears the risk of the strategy and assets. The issuer’s role is more like a conduit.
In conclusion, for issuers, Actively Managed Certificates are a win-win: they deliver value to clients (in terms of bespoke, innovative solutions) while also providing a profitable, scalable business model. By leveraging Actively Managed Certificates (AMCs), financial institutions can stay at the forefront of product innovation, deepen client engagement through customization, and generate recurring revenues with relatively low balance sheet usage. It transforms the role of a bank from just an intermediary to a platform and manufacturer of investment solutions. In the current competitive landscape, that is extremely valuable. Little wonder that a growing number of banks, brokerages, and even fintech startups are embracing the Actively Managed Certificate (AMC) issuance model as part of their service arsenal.
The Actively Managed Certificate space is continually evolving. In recent years, we’ve seen several notable developments that are shaping the future of Actively Managed Certificates (AMCs), driven by technology, market trends, and new participants. Here are some of the key recent developments and innovations:
Digitalization of Actively Managed Certificate (AMC) Management: One of the most impactful trends is the digitization of the entire Actively Managed Certificate (AMC) lifecycle. FinTech companies and forward-looking banks have introduced platforms that automate and streamline Actively Managed Certificate (AMC) administration, from initial setup to ongoing rebalancing and reporting. For instance, firms like vestr have built software that digitizes the entire life-cycle management of Actively Managed Certificates (AMCs), automating portfolio rebalancing, investor reporting, and audit trails. This has made managing potentially hundreds of Actively Managed Certificate (AMC) products feasible and efficient. Portfolio managers can interact through intuitive interfaces to adjust portfolios, and investors can get real-time updates through online portals. The result is reduced operational costs and errors, as well as improved speed – trades can be processed and reflected in NAV more quickly. APIs and integration with trading systems have allowed near real-time pricing of Actively Managed Certificates (AMCs), bringing them closer to the experience of an ETF. Digital platforms also ease compliance with regulatory requirements by automatically generating required disclosures and reports. Overall, technology has helped cut costs and reduce mistakesas, which in turn encourages more widespread adoption of Actively Managed Certificates (AMCs) by making them simpler to run. As an example of collaboration, traditional banks are partnering with fintechs: Julius Baer’s partnership with vestr to digitize its Actively Managed Certificate (AMC) platform is one case where a bank leveraged a startup’s tech to enhance its offerings. We can expect further integration of Actively Managed Certificate (AMC) platforms with banking systems, possibly even leveraging AI for strategy compliance checks or using distributed ledgers for record-keeping.
Tokenization and Blockchain: The application of distributed ledger technology (DLT) to Actively Managed Certificates (AMCs) is an exciting innovation. Tokenization involves representing ownership of the Actively Managed Certificate (AMC) (or its underlying assets) via cryptographic tokens on a blockchain. In 2021 and 2022, some providers launched tokenized Actively Managed Certificate (AMC) platforms under new regulatory frameworks (like the Swiss DLT law). The idea is to increase efficiency and broaden access: tokens can potentially be traded peer-to-peer 24/7, settled instantly, and even integrated with decentralized finance platforms.
This is particularly useful for strategies involving digital assets – e.g. an Actively Managed Certificate (AMC) that invests in cryptocurrencies could itself be issued on a blockchain, making the whole product digital-native. While still early, tokenized Actively Managed Certificates (AMCs) promise benefits like faster settlement, fractional ownership, and global reach (investors anywhere can potentially buy the token if legally allowed, without traditional brokerage accounts). It also could reduce costs by disintermediating some back-office functions. Regulators have been supportive to an extent – e.g. the Swiss SIX Digital Exchange and other venues exploring listing of tokenized securities. We are likely to see more Actively Managed Certificates (AMCs) launched on blockchain in the coming years, especially as major financial market infrastructure adopts DLT. That said, challenges remain (investor familiarity, regulatory clarity in all jurisdictions, and ensuring tokens map 1:1 to legal claims). But as a recent trend, tokenization is a frontier that Actively Managed Certificate (AMC) issuers are actively exploring, with the first movers already live.
Customization and Feeder Structures: Another innovation in Actively Managed Certificate (AMC) usage is the concept of feeder and share class structures within Actively Managed Certificates (AMCs). We touched on feeder certificates earlier – essentially creating multiple related Actively Managed Certificates (AMCs) that feed into one strategy but have different characteristics (like leverage or protection). This trend has grown as issuers seek to maximize the utility of a single strategy. For example, if an asset manager runs one core portfolio, a bank might issue a family of Actively Managed Certificates (AMCs): one plain version, one 2x leveraged version, one capital-protected version (achieved by structuring part of the investment in a bond), etc. All are actively managed in sync (the core trades are replicated), but each provides a different risk/return profile to end investors. This approach is analogous to mutual funds having different share classes, but done via separate certificates. It allows individualization – clients can pick the variant that suits them. In recent years, this has been used to cater to different currencies or hedging preferences as well: e.g. one Actively Managed Certificate (AMC) with USD exposure, another hedged into EUR, both following the same strategy. This innovation increases the reach of each strategy and allows much finer tailoring for investors.
Entrance of New Market Entrants: The Actively Managed Certificate (AMC) space is no longer just the domain of big banks. We’ve seen the rise of specialized issuance platforms and fintech entrants. They act as white-label issuers, often using SPVs in favorable jurisdictions (like Liechtenstein, Luxembourg, Cayman, etc.) to issue notes. These firms typically don’t manage the assets; they provide the legal vehicle, regulatory approvals, and operational setup, while the client provides the strategy. This development has lowered barriers to entry – now a small asset management firm or even a crypto startup can launch an Actively Managed Certificate (AMC) without needing a big bank behind it. It has democratized access to issuance. This shift means more innovation, as these smaller entrants often try new asset classes or structures. It also intensifies competition, pushing incumbents to improve services and reduce fees. Additionally, exchanges themselves (like the SIX Swiss Exchange, Borsa Italiana, etc.) have been promoting listed certificates including Actively Managed Certificates (AMCs), which brings new issuers to market via exchange programs. We also see regulated custodians and admins (traditionally serving funds) expanding into Actively Managed Certificate (AMC) administration, bringing best practices from the fund world.
Integration with Advisory Platforms (Digitally Enabled Distribution): Another recent development is integration of Actively Managed Certificate (AMC) offerings into banks’ digital advisory platforms. For example, some private banks have built modules in their online banking where relationship managers or even clients can browse available Actively Managed Certificate (AMC) strategies, see performance analytics, and execute orders. The idea is to make Actively Managed Certificates (AMCs) as easy to access and follow as mutual funds or ETFs in an online menu. This level of integration signals that Actively Managed Certificates (AMCs) have become a standard product that advisors consider alongside other investments, facilitated by user-friendly tech. It also allows for scalability in distribution – a single Actively Managed Certificate (AMC) can be suggested to many clients with a few clicks, whereas historically it might have been a niche OTC trade for a single client. As these platforms advance, we might see “AMC marketplaces” where third-party strategies are listed for investors to allocate to, similar to a fund marketplace but with active certificates.
Themed and Niche Strategies Proliferation: As Actively Managed Certificates (AMCs) grow, the range of strategies has broadened. Recently, many issuers have launched Actively Managed Certificates (AMCs) focusing on ESG (Environmental, Social, Governance) themes, given investor interest in sustainable investing. These allow active tilts towards ESG scores or exclusions dynamically. Also, Actively Managed Certificates (AMCs) have been used to ride innovation themes (like fintech, electric vehicles, biotech) by actively rotating among theme-related stocks. Because they’re easy to set up, issuers sometimes pilot a theme via an Actively Managed Certificate (AMC) and if it gains traction, later convert it into a larger fund or ETF. Performance track records from Actively Managed Certificates (AMCs) are increasingly used as proof-of-concept. For example, an asset manager might run a strategy in an Actively Managed Certificate (AMC) for 2-3 years to build history, and then present that to institutional investors for a mandate or for converting into a mutual fund down the road. This “incubator” approach is a clever innovation – it’s far cheaper to test a strategy in an Actively Managed Certificate (AMC) than to seed a fund. This has encouraged new strategy development and experimentation, as managers can try novel approaches in an Actively Managed Certificate (AMC) with a small amount of capital and see how it goes.
Hybrid Structures and Options on Actively Managed Certificates (AMCs): Some advanced developments include creating derivatives on Actively Managed Certificates (AMCs) themselves. This adds another layer of sophistication (and demonstrates the growing acceptance of Actively Managed Certificates (AMCs) as an underlying asset class in their own right). It wouldn’t be surprising to see structured products whose underlying is an Actively Managed Certificate (AMC) (like an autocallable note on an AMC’s performance) or margin lending against Actively Managed Certificate (AMC) holdings, etc., as the ecosystem matures.
Market Entrant Case: There have been moves in markets like South Africa (JSE) to list Actively Managed Certificates (AMCs) as a new instrument category, and in the Middle East, some firms are using ADGM (Abu Dhabi Global Market) to issue Shariah-compliant Actively Managed Certificates (AMCs) for Islamic investors. These developments show the format being adapted to various market niches and regulatory environments.
In sum, the Actively Managed Certificate (AMC) landscape in 2025 is characterized by increasing efficiency, broadening participation, and technological enhancement. Digital platforms make issuing and managing Actively Managed Certificates (AMCs) easier than ever, tokenization and fintech entrants are pushing the boundaries of how these certificates are structured and traded, and innovative use-cases are expanding what strategies can be delivered via Actively Managed Certificates (AMCs). Investors and issuers both benefit from these trends: investors get more choices (and hopefully better user experiences and liquidity), and issuers can scale up their offerings with better tools and lower costs. The trajectory suggests that Actively Managed Certificates (AMCs) will continue to evolve and perhaps meld further with the worlds of fintech and digital assets, potentially becoming a standard vehicle for active investment management globally.
Actively Managed Certificates have been employed in a wide range of real-world scenarios, showcasing their versatility. Below we explore some use cases and illustrative case studies that demonstrate how Actively Managed Certificates (AMCs) are being used, the kind of performance they have delivered, and trends in investor demand.
1. Replacing Private Funds for Niche Strategies: Many asset managers use Actively Managed Certificates (AMCs) to launch strategies that would traditionally be in a hedge fund or private fund format. For example, consider a diversified multi-strategy hedge fund portfolio that a bank wants to offer its clients.
2. Thematic Portfolios and Dynamic Equity Strategies: Actively Managed Certificates (AMCs) are frequently used to express investment themes. For instance, an asset manager might have expertise in biotech stocks and wants to actively manage a basket of biotech companies. Instead of starting a biotech fund, they launch an AMC. This was done by several managers during the biotech boom – the Actively Managed Certificate (AMC) allowed them to actively rotate among biotech names, take profits on spikes, and manage risk by shifting into cash or larger pharma names when needed. Another theme could be ESG (Environmental, Social, Governance): an Actively Managed Certificate (AMC) could hold a basket of high-ESG-scoring stocks and allow the manager to actively tilt the portfolio based on sustainability trends or to engage in impact investments. Investor demand for such thematic Actively Managed Certificates (AMCs) has been robust, especially among wealth management clients who want exposure to trending sectors but with professional oversight. It’s common to see these listed on structured product exchanges where both retail and advisors can invest fairly easily.
3. Bespoke Solutions for Wealthy Individuals: Private banks often use Actively Managed Certificates (AMCs) to implement tailored strategies for a single large client or a small group of clients. For example, if a client has a specific view or desire – “I want a conservative, income-generating portfolio, but I also want to include some private credit loans” – a bank can craft an Actively Managed Certificate (AMC) that does exactly that. The Actively Managed Certificate (AMC) might hold a mix of bonds, dividend stocks, and maybe a slice of a private loan fund, actively managed to maintain a certain yield and risk level. This is effectively a custom managed account, but by using an AMC, the client’s assets can be handled in a standardized, reportable way and even split into notes for their different family members or entities.
4. Track Record Incubation / Pre-Fund Strategy: Many emerging fund managers use an Actively Managed Certificate (AMC) to build a track record. This use of Actively Managed Certificates (AMCs) as incubators has become quite common. It’s reflected in demand from the manager side: the number of Actively Managed Certificate (AMC) issuers catering to such external managers has grown, indicating a trend where more strategies are “born” in Actively Managed Certificates (AMCs). In terms of investor outcome, those early investors got hedge-fund-like strategy access in a simple note and benefited from the returns (with liquidity to boot). Some might stick with the Actively Managed Certificate (AMC) even after a fund is launched if the Actively Managed Certificate (AMC) continues to perform.
5. Retail Structured Product Alternative: In markets like Italy, listed “certificati” (certificates) have become popular with retail investors as an alternative to funds or direct stock picking. A subset of these are Actively Managed Certificates (AMCs) where a known asset manager’s strategy is wrapped for mass distribution. The success of some of these products can be seen in turnover volumes.
6. Performance and Benchmarking: In terms of performance metrics, it’s important to note that Actively Managed Certificates (AMCs)’ performance varies widely depending on the strategy (just like funds).
Investor Demand Trends: Investors – both institutional and high-net-worth – have been increasingly allocating to Actively Managed Certificates (AMCs). One trend is that external asset managers (independent advisors) use Actively Managed Certificates (AMCs) to implement their model portfolios for multiple end-clients. Instead of managing dozens of separate accounts, an external manager might run one Actively Managed Certificate (AMC) and put all clients in it (or a few Actively Managed Certificates (AMCs) for different risk profiles). This not only makes the manager’s life easier, but banks encourage it because it brings that manager’s activity onto their platform. As a result, the number of external managers using Actively Managed Certificates (AMCs) is rising.
From the perspective of volumes: anecdotal evidence suggests that assets in some individual Actively Managed Certificates (AMCs) have grown quite large when the strategy proves itself. It’s not unheard of for a successful Actively Managed Certificate (AMC) to accumulate $1b+ if it’s open-architecture (multiple investors can join).
Case: Delta-One Desks and Actively Managed Certificate (AMC) Usage: Delta-one trading desks (which handle equity swaps, ETFs, etc.) have found Actively Managed Certificates (AMCs) useful to hedge or express strategies. Instead of entering a total return swap on a bespoke basket (which requires ISDA documentation per client), a bank’s client might just buy an Actively Managed Certificate (AMC) that mirrors that basket – easier operationally. Some hedge funds have even bought into other banks’ Actively Managed Certificates (AMCs) as a quick way to get exposure to a strategy (essentially outsourcing part of their strategy management). This cross-usage underscores that Actively Managed Certificates (AMCs) are becoming a standard instrument type, not limited to any single investor class.
Measured Outcomes: Ultimately, the success of Actively Managed Certificates (AMCs) as use cases is measured by investor satisfaction (returns relative to expectations, ease of use) and issuer objectives (assets gathered, revenues). So far, case studies indicate that investors appreciate: the transparency (they often know what’s going on inside the AMC), the agility (the manager can navigate crises – e.g., some Actively Managed Certificate (AMC) managers went to cash before the 2020 crash and bought back in, moves that a static product could never do), and the convenience. Issuers and managers appreciate that it’s easier to corral clients into one vehicle and manage risk centrally.
One notable trend in demand is that of family offices and small institutions adopting Actively Managed Certificates (AMCs). Because these investors often need tailored solutions but have bureaucratic hurdles to investing in external funds (or don’t meet certain fund minimums), an Actively Managed Certificate (AMC) issued by a reputable bank can be a neat solution. We see, for instance, family offices in Asia requesting Actively Managed Certificate (AMC) structures for strategies they like, which are then issued via Singapore or Swiss platforms.
In conclusion, the variety of case studies – from core investment solutions (like the hedge fund portfolio AMC) to highly specialized themes (like crypto or ESG) – shows that Actively Managed Certificates (AMCs) have truly broad applicability. Performance outcomes have generally tracked the underlying markets and manager skill: some Actively Managed Certificates (AMCs) have delivered excellent risk-adjusted returns, validating the format, while others have had middling performance (as is normal in active management – not all managers outperform). Importantly, the format itself has proven robust in different market conditions, and investor demand trends upward as familiarity grows. Real-world usage has cemented Actively Managed Certificates (AMCs) as a permanent fixture in the toolkit of structured product desks, asset managers, and investors alike. They fill the gap for “bespoke active strategy” in a way that nothing else currently does with the same convenience. Each year brings new examples of how Actively Managed Certificates (AMCs) can be applied, which in turn draws in more users and further innovation – a positive feedback loop evident in the expanding case history of Actively Managed Certificates.
Actively Managed Certificates (AMCs) have established themselves as a powerful and versatile investment vehicle at the intersection of active portfolio management and structured securities. As we have detailed in this white paper, Actively Managed Certificates (AMCs) offer a compelling proposition: the ability to convert virtually any investment strategy into a tradeable certificate, combining the skill of active management with the flexibility and liquidity of an exchange-traded instrument.
From their early origins to their current widespread use, Actively Managed Certificates (AMCs) have been driven by the financial industry’s need for customization, speed, and efficiency. They address the limitations of traditional funds – high setup costs, regulatory rigidity, and slower time to market – by providing a leaner framework without sacrificing professional management or investor protection. Over the past decade, Actively Managed Certificates (AMCs) have grown from niche products to mainstream portfolio tools, with adoption across Europe, Asia, and beyond, and usage by a spectrum of players including global banks, boutique asset managers, and even fintech startups.
For potential issuers, Actively Managed Certificates (AMCs) represent an opportunity to innovate and differentiate. Banks and structured product providers can quickly design bespoke solutions for clients, capture new revenue streams, and leverage technology to scale up their offerings. The low incremental cost and risk of adding an Actively Managed Certificate (AMC) program encourages experimentation and breadth of strategies. As we’ve seen, issuers can cater to external asset managers via white-label services, deepen client relationships through tailored products, and stay ahead of market trends by launching timely thematic investments. The regulatory frameworks in key jurisdictions – while requiring diligence – are accommodating enough to make Actively Managed Certificate (AMC) issuance feasible and attractive, provided compliance best practices are followed.
For investors and asset managers, Actively Managed Certificates (AMCs) open up a world of possibilities. Investors gain access to strategies and asset combinations that were once out-of-reach or illiquid, packaged in a convenient format with daily transparency and liquidity. They can benefit from the expertise of active managers and the innovative ideas those managers bring, whether it’s navigating hedge fund strategies, exploiting market timing signals, or tapping into emerging themes. The case studies show that investors ranging from retail to institutional have found value in Actively Managed Certificates (AMCs), whether for diversification, return enhancement, or customized mandates. Asset managers, on the other hand, can extend their reach by issuing products without heavy infrastructure, allowing them to focus on what they do best – managing money – while leaving issuance and administration to specialized partners.
Looking ahead, the trajectory of Actively Managed Certificates (AMCs) points to continued growth and evolution. We anticipate:
In conclusion, Actively Managed Certificates embody the financial industry’s push towards more personalized, agile, and efficient investment solutions. They empower issuers to innovate and investors to access, in a mutually beneficial way. By combining clear structure with human expertise, Actively Managed Certificates (AMCs) have proven to be more than just a trend – they are now a permanent and growing segment of the investment landscape.
For any institution contemplating issuing Actively Managed Certificates (AMCs), the key takeaway is that with careful structuring, robust operational support, and clear alignment with client needs, Actively Managed Certificates can be a highly effective tool for product innovation and business growth, delivering value to both the provider and the end-investor. As the financial markets continue to evolve, Actively Managed Certificates (AMCs) are well-positioned to adapt and play a central role in the future of active investing.
