Asset Managers seeking to launch investment products have two potential structures to choose from: Alternative Investment Funds Structure (AIFs) or Actively Managed Certificates (AMC).
Most AIFs come with the huge disadvantage of not having any passporting rights in Europe and even distribution in Switzerland is very limited. On the other hand, they come with high regulatory and legal costs (e.g. using a custodian instead of safekeeping the assets with the Prime Broker comes with huge additional trading and ticket fees).
Actively Managed Certificates are securities and can be offered to the public with a minimum subscription amount of 100,000 Euro as well as offered to professional investors without any minimum requirements.
An AMC therefore is as flexible as a Hedge Fund and offers more distribution and passporting possibilities than an AIF and can be launched within 4 weeks at a fraction of the costs. No wonder why Actively Managed Certificates have become more and more popular in recent years within the financial industry.
iMaps is the Expert for Exchange Traded AMCs of the next generation.
Other than first-generation AMCs issued by banks the iMaps AMC assets are secured. iMaps pledges the underlying assets to a security trustee who holds the underlying assets for the benefit of the AMC Holders. This reduces the Issuer risk to nearly zero.