AMC Basics
How Actively Managed Certificates Work
Introduction
Actively Managed Certificates (AMCs) are exchange-listed structured investment products that allow an investment manager to actively manage a portfolio within a single listed security. Unlike passive investment vehicles that follow predefined indices, AMCs enable discretionary portfolio decisions that can be adjusted as market conditions change.
This page explains the fundamental mechanics of Actively Managed Certificates: how they are structured, who is involved, how portfolios are managed, and how AMCs are traded and priced in practice. It serves as a foundational overview for readers seeking to understand how AMCs work before exploring more advanced topics such as risk management, trading mechanics, or legal considerations.
What Is an Actively Managed Certificate (AMC)?
Definition
An Actively Managed Certificate (AMC) is a stock-exchange-listed security that reflects the performance of an actively managed reference portfolio. Portfolio decisions are executed by an appointed investment manager, while the certificate itself is issued and traded on a regulated exchange.
AMCs are typically issued as debt securities and may reference a wide range of underlying assets, including equities, fixed income instruments, derivatives, and foreign exchange. The value of the certificate changes in line with the net asset value of the underlying portfolio.
For a broader introduction to AMCs and their role in the investment landscape, see the main overview page:
→ Actively Managed Certificates explained
Core Components of an AMC
Every Actively Managed Certificate is built around a small number of core components. Understanding these roles is essential to understanding how AMCs function.
The Reference Portfolio
The reference portfolio holds the underlying assets of the strategy. It is typically maintained at a broker or custodian and reflects all trading activity carried out by the investment manager.
The Investment Manager
The investment manager is responsible for executing the investment strategy. This includes selecting assets, adjusting portfolio weights, and managing risk. Portfolio decisions are discretionary and may be implemented intraday.
The Issuer
The issuer creates and issues the certificate that tracks the reference portfolio. The AMC is issued as a security and admitted to trading on a stock exchange.
The Stock Exchange
The stock exchange provides the trading venue where AMC units are bought and sold. Exchange listing enables continuous pricing, transparency, and accessibility through standard brokerage accounts.
How Actively Managed Certificates Are Structured
At a structural level, Actively Managed Certificates combine active portfolio management with a securitised wrapper that enables exchange trading.
In practice, an AMC consists of:
a reference portfolio holding the underlying assets, and
a listed certificate that tracks the value of that portfolio.
This structure allows investment strategies to be implemented and adjusted within a clearly defined product framework while remaining accessible through the stock exchange.
Example: Two-Tier AMC Structure
In some implementations, including iMaps ETIs, this structure is implemented through a two-tier setup. A dedicated segregated portfolio holds the underlying assets and operates a brokerage account, while a separate issuing entity issues the listed Exchange Traded Instrument linked to that portfolio.
This separation between portfolio assets and listed instrument is a defining feature of many AMC structures.
Active Portfolio Management in AMCs
A defining characteristic of Actively Managed Certificates is discretionary portfolio management.
The investment manager receives authority over the brokerage account of the reference portfolio and executes the strategy directly. Portfolio reallocations are not subject to predefined limits and may be implemented as frequently as required by the strategy.
All portfolio activity is reflected through the listed certificate, allowing investors to follow performance via exchange pricing and reporting rather than through direct access to the underlying portfolio.
Which Assets and Strategies Can Be Implemented?
Actively Managed Certificates are structurally flexible and can support a wide range of investment strategies, depending on the instruments accessible in the reference portfolio.
Depending on the broker used, these may include:
equities
exchange-traded funds (ETFs)
bonds and other fixed income instruments
options and futures
futures options and single-stock futures
contracts for difference (CFDs)
warrants
funds
foreign exchange instruments
This flexibility allows AMCs to support traditional, alternative, and multi-asset strategies within a single exchange-listed product.
How AMCs Are Priced and Traded
Actively Managed Certificates are traded on stock exchanges like listed securities.
Pricing is typically derived from the value of the underlying reference portfolio, adjusted for any applicable costs and fees. During trading hours, AMCs are quoted with bid and ask prices, enabling investors to buy or sell units via their existing bank or broker.
Liquidity is usually supported by designated liquidity providers or market makers, depending on the exchange and product structure.
Further details on trading mechanics and pricing are covered in:
→ Trading and Fees
How AMCs Differ from Funds and ETFs (Brief Overview)
While AMCs share certain characteristics with traditional funds and ETFs, there are key structural differences.
AMCs are issued as certificates, whereas funds represent collective investment schemes.
Portfolio rebalancing in AMCs is generally less constrained.
AMCs can often be launched faster than fund structures.
AMCs are traded on stock exchanges like listed securities rather than subscribed or redeemed at NAV.
A more detailed comparison is provided here:
→ Actively Managed Certificates vs Funds and ETFs
Key Risks to Be Aware Of
As with all investment products, Actively Managed Certificates involve risks. These include:
market risk related to the underlying assets
strategy risk associated with active portfolio management
issuer and structural considerations
liquidity considerations depending on market conditions
Risk topics are addressed in more detail in:
→ Risk and Protection
Actively Managed Certificates in Practice: The iMaps Reference Case
The structural mechanics described above are implemented in practice by several issuers of Actively Managed Certificates. One example is iMaps Capital Markets, which issues exchange-listed Actively Managed Certificates in the form of Exchange Traded Instruments (ETIs).
In the iMaps structure, a dedicated segregated portfolio holds the underlying assets and operates a brokerage account. Portfolio decisions are executed by an appointed investment manager with Power of Attorney over that account. The listed ETI is issued by iMaps ETI AG and admitted to trading on the Stuttgart Stock Exchange (EUWAX).
This setup illustrates how the roles of investment manager, reference portfolio, issuer, and exchange interact within a single Actively Managed Certificate structure.
Conclusion
Actively Managed Certificates provide a structured framework for implementing actively managed investment strategies within a single exchange-listed security. By separating portfolio management, issuance, and trading into clearly defined roles, AMCs allow discretionary investment strategies to be executed while remaining accessible through standard brokerage and exchange infrastructure.
Understanding the basic mechanics of Actively Managed Certificates — including their structure, the roles involved, and how they are managed and traded — is essential before assessing more advanced topics such as risk mitigation, trading dynamics, or legal considerations.
The iMaps reference case illustrates how these mechanics are implemented in practice through an exchange-listed ETI structure. It serves as one example of how Actively Managed Certificates can be structured and operated within an institutional framework.
For further detail, readers may explore the dedicated sections on risk and protection, trading and fees, and legal and regulatory aspects of Actively Managed Certificates.
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