Actively Managed Certificates

*This use case is a scenario from our partner GenTwo

Actively Managed Certificates

Simplifying and streamlining portfolio management

How it works

As an asset manager (AM), you have no doubt seen that many banks offer Actively Managed Certificates (AMCs). It is important to understand, however, that if you have developed an individual investment strategy, these offers may restrict you – even severely so.

This is a common situation many clients face when seeking an extremely flexible solution to execute their individual and tailor-made portfolio strategies in a way that can include all asset classes, like structured products and funds, or even reflect an active quant strategy with many trades on a daily basis. After checking all the alternatives, many decide on RainFin next-generation issuance setup – an arrangement that is independent of any bank.

Within days, AMs can package their strategy specified by the strategic adviser in a tailored AMC. They can even offer high-frequency traded portfolios.

In contrast to other conventional issuers, RainFin clients receive an individual and bespoke issuance platform that allows each client to issue an unlimited number of Actively Managed Certificates without issuer risk from a bank. The custodian and broker can also be selected in a flexible manner, providing the setup that is the best solution for specific applications. External Asset Managers can include their preferred management and performance fees.

Advantages

Asset Manager

  • Open platform: Asset Manager (AM) can choose broker/custodian
  • Fully transparent solution (AM can always see the full balance sheet)
  • All asset classes (incl. Fund & Structured Products)
  • Unlimited number of trades
  • Possibility for AM to generate a track record

Investor

  • Lower costs => more return
  • Fully transparent (market prices during the term as a performance indicator)
  • Diversification & potential performance generator
  • Easy to invest (CH-ISIN)
  • Possibility to participate in investment strategies of the AM

See how XCAP Consulting is evolving finance