Actively Managed Certificates

Structure, Listing, and Risk Considerations

This educational resource is published by iMaps Capital Markets, an issuer and platform provider for exchange-listed Actively Managed Certificates (ETIs).

Introduction

Actively Managed Certificates (AMCs) are exchange-listed structured investment products that track the performance of an actively managed portfolio. Unlike passive investment vehicles that follow predefined indices, AMCs allow portfolio allocations to be adjusted dynamically by an appointed investment manager in response to market conditions.

This page provides a general explanation of Actively Managed Certificates (AMCs), with iMaps ETIs referenced as a practical implementation example.

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.

AMCs are typically issued as debt securities and can reference a wide range of underlying assets, including equities, fixed income instruments, derivatives, and foreign exchange. The certificate’s value changes in line with the net asset value of the underlying portfolio.

How Do Actively Managed Certificates Work?

At a structural level, Actively Managed Certificates combine 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.

Example: iMaps ETI Structure

In the case of iMaps ETIs, this structure is implemented through a two-tier setup.

For each ETI, a dedicated Segregated Portfolio is established via Pecunia SPC, a wholly owned subsidiary. This segregated portfolio holds the underlying assets and opens a brokerage account with an institutional broker.

iMaps ETI AG issues the Exchange Traded Instrument linked to this segregated portfolio. The ETI units are admitted to trading on the Stuttgart Stock Exchange (EUWAX) and settled via Clearstream, with availability in Euroclear and SIX.

This separation between portfolio assets and listed instrument is a defining characteristic of the AMC structure.

Active Portfolio Management

A defining feature of Actively Managed Certificates is discretionary portfolio management.

The appointed investment manager receives Power of Attorney over the brokerage account of the reference portfolio and executes the investment strategy directly. Portfolio reallocations are not subject to predefined limits and may be executed intraday, depending on the strategy.

All portfolio activity is reflected through the listed certificate, allowing investors to follow performance via standard exchange pricing and reporting mechanisms.

Which investment / trading strategies can be implemented with an AMC?

Depending on the broker used for the reference portfolio, Actively Managed Certificates can provide access to a broad range of tradable instruments.

For example, with an Interactive Brokers managed account as the underlying of the AMC, the investment manager has access to a variety of assets and instruments for trading (at very low transaction fees). These include:

  • Stocks

  • Options

  • Futures

  • CFDs

  • Futures Options

  • Single Stock Futures (SSFs)

  • Exchange-Traded Funds (ETFs)

  • Exchange for Physicals (EFPs)

  • Currencies

  • Fixed Income (bonds)

  • Warrants

  • Funds

In practice, AMC strategies are executed through a reference portfolio held at a broker, with portfolio decisions made by an appointed investment manager.

At iMaps Capital Markets, this is implemented through a two-tier structure in which a Segregated Portfolio of Pecunia SPC opens a brokerage account, while iMaps ETI AG issues the listed Exchange Traded Instrument linked to that portfolio.

Case Studies

Actively Managed Certificates vs Funds and ETFs

Actively Managed Certificates differ structurally from traditional funds and exchange-traded funds.

  • Structure: AMCs are issued as certificates, whereas funds represent collective investment schemes.

  • Portfolio Flexibility: AMC portfolios can typically be adjusted without regulatory rebalancing constraints.

  • Time to Market: AMCs can often be launched faster than fund structures.

  • Trading: AMCs are traded on stock exchanges like listed securities.

  • Cost Framework: Fees depend on the specific AMC setup rather than standardized fund fee models.

These differences position AMCs as a distinct category within the broader investment landscape.

Stock Exchange Listing and Investor Access

Most Actively Managed Certificates are admitted to trading on regulated stock exchanges.

In the case of iMaps ETIs, listing takes place on the Stuttgart Stock Exchange (EUWAX), the largest exchange-based segment for structured investment products in Europe.

Investors can buy and sell listed AMCs during market hours via their existing bank or broker, including international platforms such as Interactive Brokers.

At iMaps, we list most of our AMCs as Exchange Traded Instruments (ETIs) at the Stuttgart Stock Exchange, currently the biggest exchange in the world for Actively Managed Certificates.

At present it features over 1.9 million publicly listed securities, making it the largest exchange-based segment for securitized derivatives in Europe.

Liquidity and Settlement

EUWAX acts as Quality Liquidity Provider, ensuring continuous price quotation. Trades are settled via Clearstream, with availability in Euroclear and SIX.

Collateralisation and Issuer Risk

Issuer credit risk is a structural consideration in Actively Managed Certificates, as they are typically issued as debt securities.

Some AMC structures address this risk through collateralisation mechanisms. In a collateralised setup, the assets held in the reference portfolio are pledged to an independent trustee for the benefit of certificate investors.

Collateralization in Actively Managed Certificates offers a significant advantage by hedging issuer risk, thereby enhancing the safety and appeal of these investment vehicles. This feature not only increases investor confidence but also contributes to the stability and attractiveness of AMCs in the financial market. For investors seeking actively managed investment opportunities with an added layer of security, collateralized AMCs present a compelling option.

At iMaps, the issuer risk is hedged. So, the underlying assets, for instance, Segregated Portfolio XYZ, serve the purpose as hedge and collateral for the respective XYZ ETI (listed AMC). In this respect, the underlying assets get pledged to a regulated private trust company, for the sole benefit of the program secured creditors being the respective ETI XYZ investors.

Retail Public Offering in Europe

Actively Managed Certificates may be offered to retail investors if issued under an approved base prospectus and properly passported.

iMaps ETIs are issued under an FMA-approved base prospectus and can be publicly offered to retail investors in multiple European countries, such as Germany, France, Italy, Austria, Liechtenstein, Luxembourg, Ireland, Switzerland, Belgium, Cyprus, Czech Republic, Denmark, Finland, Malta, the Netherlands, Norway, Portugal, Slovenia, Slovak Republic, Spain, and Sweden.

Risks and Considerations

Actively Managed Certificates involve risks that investors should consider carefully, including:

  • Market risk related to the underlying assets

  • Strategy risk associated with active portfolio management

  • Issuer and structural considerations, potentially mitigated through collateralisation

  • Liquidity considerations dependent on market conditions

A thorough review of product documentation is essential before investing.

Actively Managed Certificates in Practice: The iMaps Reference Case

Since its founding in 2018, iMaps Capital Markets has structured and issued more than 100 Exchange Traded Instruments, representing over CHF 600 million in issued ETI volume.

All iMaps ETIs are listed on the Stuttgart Stock Exchange (EUWAX), audited annually by BDO (Liechtenstein) AG, and supported by institutional clearing and settlement infrastructure.

This real-world implementation illustrates how Actively Managed Certificates are structured, managed, and accessed in practice.

Conclusion

Actively Managed Certificates provide a flexible, exchange-listed framework for implementing actively managed investment strategies. By combining discretionary portfolio management with a securitised structure, AMCs allow investment strategies to be adjusted dynamically while remaining accessible through standard brokerage channels.

When implemented with institutional infrastructure, exchange listing, and appropriate risk-mitigation mechanisms, Actively Managed Certificates occupy a distinct and practical position within modern investment markets.

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