The New Era of Actively Managed Certificates
AMCs started out as simple tracker certificates used by Swiss private banks, before advanced fintech platforms and increasingly democratised financial markets separated the roles of issuer and asset manager. Suddenly, external asset managers (EAMs) could launch their own strategies in a matter of days, making AMCs an ideal speed-to-market tool. The market has also developed off-balance-sheet structures using special purpose vehicles (SPVs), creating greater flexibility for strategies involving assets that do not fit within a traditional framework.
The SPV Revolution: Combining Institutional Protection With Rapid Market Access
AMCs issued by a bank are structured products and, in legal terms, constitute a debt security. As such, the investor bears the counterparty risk of the issuing bank. In the event of the bank’s insolvency, the investor could therefore lose all or part of their invested capital regardless of the performance of the underlying assets. SPVs can provide a solution here. Assets issued via an SPV are segregated from the balance sheet, minimising the counterparty risk.
Why Are AMCs an Attractive Solution for Asset Managers?
Creating an AMC via an SPV structure offers a range of advantages for EAMs:
- Reduced user risk: Assets are held off balance sheet within a bankruptcy-remote structure, protecting investors from issuer risk.
- Faster speed to market: Established SPV frameworks allow strategies to be launched quickly and easily.
- Cost efficiency: AMCs offer an affordable way to launch and rebalance investment strategies.
- Growth in assets under management (AuM): Managers can attract new clients, deepen existing relationships and expand wallet share.
- Greater customisation: Managers can develop thematic or bespoke strategies while defining their own fee models.
- Flexible execution and custody: Portfolio managers can continue using their preferred banking, custody and execution partners on a tailored platform.
- Operational efficiency: Consolidated trading volumes and pooled assets can lead to more efficient fee structures.
- Broad investment universe: AMCs can provide access to a wide range of assets, including futures, options, private markets, cryptos and more.
Swissquote’s Role in the AMC Framework
«As both a custodian and broker, Swissquote provides core infrastructure across the entire product lifecycle,» explains Filip Sarovic, Senior Sales Structured Solutions at Swissquote. «We combine off-balance-sheet security with maximum trading flexibility.»
Swissquote serves as a depositary and broker for the underlying assets of AMCs. The bank provides off-balance-sheet SPV solutions in jurisdictions such as Guernsey, the Cayman Islands, Luxembourg and Switzerland to meet varying regulatory and investor needs.
This is where Swissquote’s dual role becomes a strategic advantage. As the primary brokerage platform, Swissquote enables the AMC to function as a dynamic multi-asset investment vehicle rather than a static security. EAMs can execute buy and sell orders, allowing strategies to be implemented and adjusted in real time. One key strength of Swissquote’s brokerage integration is the breadth of market access it provides. The investment universe includes equities, bonds, funds, ETFs, derivatives, structured products and digital assets.
The Future of Modern Investment Solutions
The appeal of AMCs lies in their ability to combine institutional-grade protection with the speed and flexibility required in modern financial markets. By using Swissquote’s off-balance-sheet solutions, asset managers can launch actively traded multi-asset strategies within a robust regulatory framework. As a result, AMCs are becoming an increasingly important tool in modern investing.
- Learn more about us here.
