Introduction to Actively Managed Certificates
Actively Managed Certificates (aka. AMCs) represent a significant advancement in investment management, combining flexibility with operational efficiency. FundFront’s platform harnesses this structure to serve asset managers, family offices, and institutions seeking streamlined solutions. The model reduces both costs and complexity while expanding distribution options.
Introduction: The Rise of AMCs
Investment managers increasingly turn to AMCs as markets demand greater adaptability. These certificates answer the growing need for investment vehicles that can quickly adjust to changing conditions while maintaining cost efficiency.
What Sets AMCs Apart?
Unlike traditional fund structures that often face high expenses and regulatory complexity, Actively Managed Certificates provide a more agile framework. AMCs offer a structured yet flexible investment vehicle that allows for rapid asset allocation changes, lower regulatory hurdles, and a more comprehensive range of asset classes—including public markets, private assets and even exotic opportunities like cryptocurrencies.
Comparing AMCs and Traditional Fund Structures
Setup Process
Traditional funds typically require 9-12 months for launch, demanding substantial upfront capital and extensive documentation. By contrast, AMCs through FundFront’s platform can move from concept to launch within weeks, dramatically reducing both time and resource requirements.
Ongoing Management
The administrative burden differs markedly between the two approaches. Traditional funds maintain dedicated teams handling various functions – from NAV calculations to compliance filings. Actively Managed Certificates streamline these processes through automated systems and simplified workflows, leading to meaningful cost reductions.
Investor Visibility
Traditional fund structures often struggle with reporting delays and limited transparency. AMC platforms address these challenges head-on by providing current performance data and comprehensive reporting tools. This enhanced visibility helps both managers and investors make more timely, informed decisions.
Use Cases
Liquid Alts Manager: Creating Distribution Channels
A liquid alternatives manager can use FundFront’s AMC platform to swiftly convert trading strategies into investable AMCs. These can then be easily distributed through partnering banks or other financial institutions. The transparency and reporting features of our platform make these Actively Managed Certificates particularly appealing to potential partners, thus allowing the liquid alts manager to rapidly scale assets under management and reach a more extensive pool of investors.
Family Offices: Curating Investment Menus
For a family office serving high-net-worth individuals, the ability to create customised portfolios is invaluable. Utilising FundFront’s AMC platform, the office can establish AMCs that comprise a diverse asset mix, from established blue-chip stocks to high-growth private equity opportunities. By leveraging our technology for administrative lifecycle management, the family office can offer these bespoke AMCs to clients, aligning with their specific risk tolerances and investment goals, without the usual administrative burden.
Larger Institutions: Building Marketplaces
Large financial institutions looking to diversify their product offerings can use FundFront to build an entire marketplace of Actively Managed Certificates. With our platform’s scalability and ease of use, institutions can sidestep operational complexities and high costs associated with traditional funds. The result is a marketplace rich in curated, quality investment opportunities that can be swiftly brought to a broad client base.
Benefits of Using FundFront’s Platform
FundFront’s platform isn’t just a tool; it’s a comprehensive solution. Below are some expanded benefits:
- Turnkey Solution: Our platform provides everything you need to launch an AMC, from product structuring to tech infrastructure.
- Reduced Costs: By automating many of the administrative tasks, our platform substantially lowers the cost of managing investments.
- Swift Time-to-Market: With a faster setup time, your investment products can be in the market in a fraction of the time compared to traditional structures.
- Global Reach: Our platform’s scalability enables you to reach a global audience without the hassles of dealing with different regulatory landscapes.
- Enhanced Customisation: The flexibility of the platform allows for the creation of highly customised investment solutions, meeting the unique needs of various client segments.
- Scalability: The platform can easily adapt to your growth, whether you’re managing one fund or multiple marketplaces.
Conclusion
AMCs mark a significant shift in investment management practices, combining adaptability with operational efficiency. FundFront’s platform makes this structure accessible to a broader range of investment professionals. The streamlined approach particularly suits forward-thinking managers seeking better ways to package and distribute investment solutions.
Whether you manage institutional assets, oversee family wealth, or lead a financial institution, Actively Managed Certificates offer compelling advantages:
- Swift implementation
- Cost efficiency
- Investment flexibility
- Simplified operations
Learn more about putting AMCs to work for your business by contacting our team at hello@fundfront.com.
Disclaimer
FundFront provides operational and technological solutions for fund structuring, securitisation and management. We do not provide legal, tax or financial advice. We recommend that you consult with professional legal or financial advisors to ensure compliance and appropriateness for your specific situation.
