Actively Managed Certificate (AMC)

An Actively Managed Certificate (AMC) is a financial product, similar to a fund, and also actively managed by a professional investment manager. An AMC offers the combined benefits of mutual funds and fixed income securities, allowing for investment in a wide range of underlying assets, including equities, bonds, cryptocurrencies, commodities, and derivatives. With an AMC, you can turn your investment strategy into a tailored security that meets your specific requirements, such as maturity, interest rate, and currency preferences – making them a versatile option for investors and managers.

Each AMC receives an ISIN and can be listed on a stock exchange if needed. AMCs are bankable, clearable, and can be purchased through a bank account, offering easy access and transparency. The daily performance of the AMC is reflected in its price, allowing investors to track results in real time and participate in your investment strategy with confidence.

To request your tailor made AMC, please visit our AMC request form.

Actively Managed Certificates (AMC) explained

Actively Managed Certificates (AMCs) are structured financial products designed for dynamic investment strategies that can be adjusted in real-time. Unlike passive investment vehicles, AMCs are actively managed by an investment professional. The performance is tracked via a synthetic strategy basket or a custom index, providing investors with exposure to diverse asset classes, including stocks, bonds, derivatives, and digital assets like cryptocurrencies.

In Luxembourg, Super Global specializes in establishing ring-fenced compartments, offering security and no issuer risk for investors. These compartments comply fully with Luxembourg’s Securitization Law of 2004, ensuring a robust and globally recognized regulatory framework.

Key Benefits of Super Global as Luxembourg-Based Issuer

Luxembourg is a globally recognized hub for Actively Managed Certificates, offering key advantages for both institutional investors and investment managers. AMCs issued from Luxembourg platforms like Super Global provide several key advantages:

1. No Issuer Risk: Thanks to the segregated compartment structure, AMCs issued under Super Global’s platform carry minimal issuer risk, protecting investors from insolvency risks typical of traditional issuers such as banks.
2. Bankable Assets: AMCs can be made bankable through a German or Swiss ISIN, allowing easy trading and greater accessibility for investors.
3. Luxembourg’s Securitization Law ensures strong legal protection and compliance with EU regulations, while also requiring external audits, which adds another layer of security for investors.
4. Flexibility and Scalability: AMCs offer maximum flexibility in choosing custodians, brokers, and other service providers. This customization makes them ideal for professional investors.
5. Tax Optimization: Luxembourg provides tax-neutral structures with deductible expenses, and eligibility for Double Taxation Agreements (DTA) makes AMCs a highly tax-efficient investment product and to manage a large number of clients within a single AMC, leading to significant cost and time savings.
6. Fast Setup: Super Global’s platform allows for quick and efficient AMC structuring and issuance, giving investment managers the agility needed to capitalize on market opportunities swiftly.

Comparing AMCs to Traditional Investment Funds

Both AMCs and traditional funds serve as vehicles for investment strategies, but there are significant differences:

1. Structure: AMCs are issued as debt securities, offering more flexibility and fewer regulatory requirements compared to mutual funds.
2. Cost Efficiency: AMCs tend to have lower fees due to streamlined processes and less stringent regulations, making them a cost-effective alternative for professional investors.
3. Transparency and Liquidity: AMCs provide daily price updates, giving investors real-time information on holdings and performance, whereas mutual funds often only provide quarterly reports.

Regulatory Considerations for Luxembourg-Based AMCs

AMCs issued in Luxembourg are governed by the Luxembourg Securitization Law of 2004, which offers a solid legal foundation for protecting investors while ensuring issuer flexibility. Super Global ensures that all AMCs comply with both Luxembourg and EU regulations, including Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements.

For cross-border transactions, issuers must comply with regulations in both the issuer’s and the investor’s jurisdiction, particularly for professional investors operating in multiple countries.

Conclusion

Actively Managed Certificates (AMCs) present a flexible, efficient, and cost-effective solution for professional investors seeking tailored investment strategies. Super Global’s Luxembourg platform offers the ideal infrastructure for creating AMCs with no issuer risk, tax optimization, and full regulatory compliance. As the demand for bespoke financial products continues to grow, AMCs are set to become a key component of modern investment management.

For more information on how Super Global can assist you in structuring and issuing AMCs, please visit the Super Global website or request your customized AMC directly: AMC request.