Why AMCs are gaining popularity among asset managers
Actively Managed Certificates (AMCs) are increasingly emerging as the preferred investment vehicle for asset managers and family offices seeking to optimise client portfolios. This growing popularity is driven by several key advantages for institutional investors. “AMCs can be launched quickly, traded on the stock exchange and offer cost-efficient, easily managed structures with favourable tax implications”, explains Daniel Knoblach, Board Member at Super Global Services SA.
When asset managers and family offices invest in multi-asset strategies on behalf of their clients, they are increasingly turning to AMCs under Luxembourg law. “The number of inquiries for AMCs is steadily rising, with particularly strong interest in exchange-listed AMCs that offer a diversified mix of asset classes”, Knoblach says.
According to Knoblach, the growing demand is primarily driven by the simplicity and flexibility that this form of securitisation provides for institutional investors. AMCs enable investors to quickly and efficiently establish customised investment vehicles. “For instance, a portfolio of bonds in multiple currencies and other asset classes can be structured into a single security and brought to market within weeks”, Knoblach explains. AMCs offer tailored solutions, allowing asset managers to define key parameters such as maturity, currency, exchange listing, yield distribution and custodian selection – all according to their specific investment objectives.
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“AMCs are more cost-effective and easier to manage than traditional investment funds while still offering many of their advantages”, Knoblach adds. Unlike funds, AMCs can be assigned a WKN/ISIN and listed on the stock exchange, making them highly liquid and easily tradeable. Additionally, asset managers and family offices can seamlessly book AMC units into their clients’ securities accounts, significantly reducing administrative complexity and costs.
Another key benefit is Luxembourg’s favourable legal and tax framework for AMCs. Thanks to deductible expenses and access to double taxation agreements, Luxembourg-based AMCs offer significant fiscal advantages. Moreover, the Luxembourg Securitisation Act ensures transparency and security by requiring AMCs to undergo annual audits. Their compartmentalised structure effectively limits risk, enhancing investor protection. “Luxembourg offers the ideal conditions for issuing actively managed certificates. Its legal certainty and transparency make it the top financial hub for institutional investors seeking a secure and efficient AMC structure”, Knoblach concludes.