Actively managed certificates (AMCs): Types and delimitation
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AMC & Structuring
In an investment context, structuring is the discipline of translating an investment strategy or a desired payout profile into an investable, tradeable vehicle, for example a structured product, a dedicated fund vehicle, or a securitisation solution. The Actively Managed Certificate (AMC) is one common form used for actively managed strategies. Wealth and succession structuring using trusts and foundations is a separate discipline and should be distinguished from product structuring.
The essentials
01
Structuring is the overarching discipline: an investment strategy is translated into a tradeable vehicle. The AMC is one of several possible wrappers.
02
An AMC is a structured product whose underlying is managed on a discretionary basis during its term in accordance with a defined investment strategy.
03
Legally, an AMC is a debt security issued by the issuer: investors hold a claim against the issuer rather than a share in the underlying, and therefore bear the issuer risk.
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An AMC is not a collective investment scheme under CISA. The distinction follows the principle of form over substance; in borderline cases, a FINMA no-action letter clarifies the classification.
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Structured products are subject to FinSA: conduct obligations apply and, when offered to retail clients, a key information document is required. They may only be offered to retail clients if issued, guaranteed, or equivalently secured by a supervised institution.
Sources: SSPA AMC Recommendations · FinSA · FINMA · CISA
Frequently asked questions about AMC & Structuring
Structuring is the discipline of translating an investment strategy into a tradeable vehicle. The AMC is one concrete form of that. Depending on the situation, a dedicated fund vehicle or a securitisation solution may also be considered. The appropriate wrapper depends on the strategy, volume, cost framework, and investor base.
An AMC replicates an index whose composition is managed on a discretionary basis during its term in accordance with a defined investment strategy. The issuer implements the strategy synthetically; an AMC Advisor may compose and rebalance the underlying within the scope of the strategy. Investors participate in the performance of that underlying through the certificate.
In a fund, a collective investment scheme, investors hold a share in the collective assets. With an AMC, investors instead hold a claim against the issuer, which carries issuer risk; in the event of insolvency, the assets are in principle not segregated, though in Switzerland they are sometimes secured through pledges. The appropriate solution depends on the strategy, investor base, and regulatory classification.
Structured products such as AMCs may only be offered to retail clients if they are issued, guaranteed, or equivalently secured by a supervised institution, such as a bank or a securities firm, or through an appropriately secured special purpose vehicle (SPV). A key information document must also be prepared when offering to retail clients. This does not constitute investment advice.
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