Knowledge
Structuring Actively Managed Certificates for Hedge Fund Strategies

The Power of Actively Managed Certificates
Actively Managed Certificates (AMCs) represent a sophisticated investment vehicle that enables hedge funds to package their investment strategies in a more flexible, tradable format. These certificates combine the benefits of active portfolio management with structured product features, offering investors enhanced liquidity and transparency.
Through our comprehensive AMC platform, FundFront facilitates the entire process – from structuring and issuance through ongoing operations. By utilising a bankruptcy remote Special Purpose Vehicle (SPV) and coordinating with leading service providers, we create a robust framework that allows hedge funds to expand their investment offering while maintaining operational efficiency.
The Importance of a Structured AMC Programme
AMCs deliver three primary advantages:
- Investor Transparency: AMCs provide investors with clear insight through consistent updates on portfolio positions and strategy performance. This transparency helps build investor confidence and typically drives increased capital flows.
- Enhanced Liquidity: The AMC structure offers improved liquidity versus traditional investment products. Investors can enter and exit positions more efficiently, making these vehicles particularly appealing to those seeking shorter investment horizons or greater trading flexibility.
- Bankruptcy Remote Structure: A critical feature of our AMC programme is the bankruptcy remote SPV, which insulates the investment assets from any credit risk of the parent hedge fund. This segregation through the SPV structure provides investors with additional security and helps attract more risk-conscious allocators.
FundFront’s Comprehensive AMC programme Solution
Full-Service Coordination
FundFront delivers a comprehensive AMC platform that streamlines the issuance process from end to end. We coordinate all programme aspects, bringing together top-tier service providers on a single platform. This integrated approach ensures efficient management of every component, from legal documentation through distribution.
Service Provider Integration
Our network includes leading legal advisors, trustees, and paying agents. By consolidating these services on one platform, FundFront removes the burden of managing multiple vendor relationships from hedge funds. This simplifies operations while maintaining consistent, high-quality service delivery across the programme.
Operational Management
The operational demands of running an AMC programme can be complex. FundFront handles these responsibilities, enabling hedge funds to concentrate on their core activities. Our expert team manages all aspects – from compliance and regulatory requirements to documentation and execution – providing a seamless programme experience.
Core Elements of Your AMC programme
Legal and Compliance Framework
Effective AMC programmes require rigorous legal and regulatory oversight. Our legal partners specialise in AMC structuring, providing expert guidance and comprehensive documentation support to ensure full compliance across all jurisdictions.
Trustee and Payment Services
Our programme incorporates leading trustees and paying agents essential for smooth AMC administration. These partners oversee critical functions including interest distribution, redemption processing, and certificate compliance monitoring.
Custody Account Distribution
AMCs issued through our programme qualify as bankable securities, enabling distribution via custody accounts. This expands investor access and integrates the certificates seamlessly into existing financial infrastructure, enhancing their marketability.
Benefits of Partnering with FundFront
Professional Experience
FundFront brings deep expertise in AMC programme structuring and management. Our team’s extensive experience ensures your programme meets the highest market standards.
Custom programme Design
Each hedge fund has distinct needs. We develop tailored AMC solutions that align precisely with your fund’s requirements, strategic objectives, and operational framework.
Process Efficiency
By managing all programme components, FundFront delivers a streamlined operation. This comprehensive service reduces your administrative load, allowing focus on core investment activities.
Marketing Platform Integration
Our programme includes integration with marketing platforms to enhance AMC visibility. For funds with multiple products, we offer marketplace software solutions to improve product presentation and investor access.
Market Standing
A FundFront partnership strengthens your market position. Our comprehensive service approach and premier provider network ensure your AMC programme maintains the highest industry standards, enhancing your reputation with investors.
Conclusion
The establishment of a structured actively managed certificate (AMC) programme is a strategic move for hedge funds seeking to enhance their access to the capital markets, offer flexible investment solutions and improve transparency and liquidity. FundFront offers a comprehensive, full-service AMC programme solution that streamlines the issuance process, integrates best-in-class service providers, includes a bankruptcy remote SPV for added security, and manages all operational details. By partnering with FundFront, hedge funds can focus on their core competencies while leveraging our expertise and resources to successfully navigate the complexities of the AMC market.
For hedge funds looking to expand their market presence, FundFront offers customised AMC solutions tailored to your specific requirements. Contact our team to discuss how a structured AMC programme can help achieve your strategic objectives.
Email us at hello@fundfront.com or complete the contact form on our website here.
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.
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