Actively managed certificates (AMCs) have become increasingly popular among investors. This trend can be attributed to the growing offerings from wealth managers, as well as the numerous advantages that AMCs provide. They allow investors access to a wide range of assets with lower initial investments, as well as flexibility in portfolio structure. In addition, AMCs offer the opportunity for diversification and easier adjustment to market changes, making them highly attractive to investors seeking an optimal balance between risk and return.

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What are Actively Managed Certificates (AMC)?

An Actively Managed Certificate (AMC) is a sophisticated investment instrument that combines the benefits of structured products and actively managed funds. This innovative financial tool allows the implementation of various investment strategies, combining the features of investment funds, ETFs, bonds, and other market instruments. An AMC represents a package of different types of assets and offers investors a certain percentage of returns, making it particularly attractive for those seeking diversification and stable income. These certificates can be traded on secondary markets or stock exchanges, which provides broader access to the investment community.

Unlike ETFs, the AMC provider is not required to purchase assets directly. AMCs are based on contracts that function as synthetic securities, allowing a flexible and dynamic composition of assets. As a result, AMCs can invest in various asset classes, including stocks, bonds, commodities, cryptocurrencies, and many other types of investments, offering investors a broad range of opportunities to build an optimal portfolio.

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Advantages of Actively Managed Certificates

• Low Minimum Investment Amount
  One of the key advantages of AMCs is the low minimum investment amount. Unlike many traditional investments that require large initial sums, AMCs allow access to a broad range of assets with relatively small investment amounts. This makes it possible for even small investors to invest in assets that are typically only available to institutional investors. AMCs provide access to various markets and instruments, such as private markets, hedge funds, or specialized funds, reducing the barrier to entry for these types of investments.
  
  
• Diversification and Flexibility
  AMCs enable wide diversification, as a single certificate can contain various types of assets. For example, an AMC can include stocks, bonds, commodities, and cryptocurrencies, allowing investors to invest in a variety of asset classes without needing a large number of individual investments. This diversification helps reduce risk, as the dependence on individual assets is significantly lower. Investors can feel more secure knowing their investments are spread across different sectors and asset types, thus reducing the likelihood of significant losses in the event of a downturn in specific markets. 
  Moreover, AMCs provide flexibility, as wealth managers can quickly adjust portfolios to market changes. AMCs can be rapidly restructured, allowing changes to the asset composition without requiring large administrative efforts or changes in the portfolio structure.
  
  
• Liquidity
  Although certain portions of the assets within an AMC may be long-term and illiquid, the AMC itself still offers a high level of liquidity. This instrument can be traded on secondary markets, enabling investors to quickly access their investments and sell certificates whenever they wish. This option is particularly important for investors who seek flexibility in accessing their capital. Since AMCs allow trading on the stock exchange, investors can easily track the performance of their investments using ISIN numbers, contributing to transparency and investment management.
  
  
• Tradability and Clear Cost Structure
  The structure of AMCs allows for easier asset repositioning within the portfolio, meaning that wealth managers can quickly and efficiently react to market changes without requiring investors to take additional steps. Additionally, trading costs and fees for AMCs are usually clear and transparent, enabling investors to precisely calculate the total costs of their investments and plan their next moves. This clarity regarding costs helps investors better understand how their funds are being used and what fees are being applied, making decision-making simpler.
  
  
• Access to Various Markets and Assets
  One of the most significant advantages of AMCs is access to a wide range of assets and markets. AMCs allow investment in asset classes that are often unavailable to individual investors, such as private equity funds, hedge funds, or specialized sectors and markets. This access enables investors to diversify their portfolios into new areas and maximize potential returns.
  Additionally, AMCs allow investment in assets that may have high returns but also greater risk, such as cryptocurrencies or risky startups. This is an opportunity for investors to capitalize on growing sectors or markets with significant potential, but with professional management that can help reduce risk.
  
  
• No Borders or Tax Restrictions
  AMCs are highly attractive to foreign investors, as they often have no restrictions regarding borders or capital gains taxes. For investors from other countries, who may face taxes or regulations applicable to capital gains, AMCs offer a significant advantage as these barriers are typically reduced or completely eliminated. This factor makes AMCs very attractive for international investors who wish to invest in global portfolios without additional administrative or tax obstacles.
  
  

Exceptional Benefits of AMCs for Investors

Actively managed certificates (AMCs) represent an exceptionally flexible and innovative investment instrument that provides investors access to a wide range of assets while reducing barriers to entry in the market. Given their advantages, such as low minimum investments, diversification, liquidity, and access to various markets, AMCs are an excellent tool for investors looking to optimize their portfolios. Additionally, their attractive features, such as tradability and clear cost structure, make them appealing to various types of investors, including those with international interests. Considering all of these advantages, AMCs represent a relevant and valuable instrument in today’s investment market.