Are AMCs Better Than Mutual Funds? | Khalid Shamim | Quadra Wealth

Añadido: 2026-06-01

[00:00:00]As an asset manager, we need scalable and efficient solutions for managing our clients' wealth. One important product category in the wealth management space has seen considerable growth in popularity over the last years, so-called AMCs or actively managed certificates. What exactly is an actively managed certificate? AMCs are tracker certificates on actively managed indices. They allow investors to participate in the performance of the underlying index designed by the index sponsor. [music] It tracks the underlying index, which is managed in a discretionary basis by the index sponsor.

[00:00:41]Thus, enabling active management of a chosen investment strategy. As such, they represent a dynamically changing portfolio with regular rebalancing by the asset manager. What are the main benefits in comparison to, say, funds?

[00:00:57]There are various reasons for the strong growth in this investment vehicle. One of the main ones being the speed with which they can be implemented. AMCs can be set up within weeks, unlike funds, which often take several months before they are investable. On top of that, they are extremely flexible. We can implement almost any investment strategy or asset allocation using the AMC format. The underlying index can be constructed using a very wide range of liquid cash instruments, such as shares, bonds, and funds, but also derivatives and other structured products, as well as foreign exchange strategies.

[00:01:39]In addition, they're highly efficient from an administrative viewpoint. For an external asset manager with numerous clients, it means no cumbersome management of lots of individual portfolios. We can bundle our clients and implement one investment strategy with one AMC and one ISIN.

[00:01:59]One only needs a small number of clicks in the tools on the platform we use. For example, rebalance the underlying index and that then reflects in multiple client accounts. We can also use an AMC to reach smaller investors, providing them with indirect access to opportunities. They would otherwise not have had available to them because of high minimum investment levels.

[00:02:25]AMCs can be listed on the stock exchange and are tradeable in secondary markets via NAV trades.