When it comes to launching an Actively Managed Certificate (AMC), I often witness a common misconception, that the process begins with structure, jurisdiction or cost. In reality, the most successful AMC issuances start somewhere far more fundamental, with the client’s objective and the investment strategy itself.
Start With the Client Objective Before Structuring an AMC
Before any discussion around platforms, wrappers, or operational frameworks, the key question must be, “what problem is the client trying to solve?”.
Is the goal to provide investors with access to a differentiated alpha strategy, or asset class? To create a scalable distribution vehicle? To package an existing track record into a more efficient or transparent format? Or perhaps to access a new investor base through a listed instrument? Each of these objectives leads to very different structural and operational decisions.
How Investment Strategy Shapes AMC Design
Closely linked to this, is the strategy. The nature of the underlying investment approach – whether it is systematic or discretionary, liquid or less liquid, high turnover or long-term. These factors will ultimately dictate the optimal AMC design. It influences everything from rebalancing frequency and pricing mechanics to counterparty selection, risk controls, and reporting requirements.
When to Consider Jurisdiction, Listing Venue and Cost
Only once the “objective” and “strategy” are clearly defined, does it make sense to move into the next phase of the conversation. This is where considerations such as operational setup, jurisdiction, listing venue, and cost efficiency come into play. Importantly, these elements should support the strategy, not constrain it.
Why a Strategy-First AMC Structure Delivers Better Outcomes
Taking a “strategy-first” approach ensures that the AMC is not only technically viable, but also fit for purpose, aligned with investor expectations and capable of delivering the intended outcome over time.
How Gilderstone Supports Efficient and Scalable AMC Launches
At Gilderstone Securities, we believe that structuring is not just about building a product, it’s about enabling a strategy to succeed in the most efficient and scalable way possible.
If you’re considering launching an AMC, start with the “why” and the “how” of your strategy. The rest should follow.