Understanding the Security and Structure of Actively Managed Certificates
As the investment landscape broadens, understanding the intricacies of newer financial instruments is key. Today, let's demystify Exchange Traded Instruments (ETIs) which are collateral-secured exchange-traded Actively Managed Certificates (AMCs).
ETIs are a type of security that offer investors access to the performance of underlying assets, which could range from a basket of stocks to commodities. They are traded on stock exchanges, similar to stocks, providing liquidity and transparency.
What sets iMaps Capital Markets' ETIs apart?
1. Structure: iMaps operates a two-tier structure, setting up a Segregated Portfolio (SP) linked to an ETI. This ensures asset segregation and minimized issuer risk, since assets are pledged to a secure trustee.
2. Flexibility: Asset managers can include a broad spectrum of assets in a SP (the underlying of the ETI), including traditional and alternative investments, even cryptocurrencies.
3. Cost Efficiency: ETIs are cost-effective, eliminating the need for intermediaries and reducing operational burdens.
4. Security: The collateralization of assets pledges underlying assets to a secure trustee, effectively hedging the issuer risk.
5. Accessibility: Traded on exchanges, ETIs can be bought and sold as easily as stocks or ETFs.
Compared to investment vehicles like mutual funds or hedge funds, ETIs offer significant advantages
- Liquidity: ETIs can be bought and sold during trading hours just like stocks.
- Transparency: Prices are readily available, and the performance can be tracked with ease.
- Diversification: AMCs allow for a wide range of underlying assets.
- Cost: Much lower fees compared to funds.
ETIs by iMaps signify a paradigm shift in investment solutions, fusing security with flexibility and efficiency. For asset managers and investors aiming to venture beyond traditional vehicles, ETIs present a promising pathway.
PS: You can use the following links to easily book an e-meeting with us: https://meetings.hubspot.com/jeffrey-alldis (Jeffrey Alldis) or https://meetings.hubspot.com/herbert-hakala (Herbert Hakala)
