What is an Actively Managed Certificate (AMC): Bringing Active Strategies On‑Chain

TL;DR

Asset managers are looking for a faster, lighter alternative to setting up a full‑blown fund. Actively Managed Certificates (AMCs) turn an investment strategy into a listed security in weeks —and with Fume you can run the entire lifecycle on‑chain.

1 What exactly is an AMC?

An AMC is a structured note issued by a bank or special‑purpose vehicle.
Its price tracks a portfolio that a strategy manager can rebalance at will, so investors get the flexibility of an actively managed fund wrapped in the simplicity of a single ISIN.

2 Why issuers love AMCs

• Speed to market – no need for fund registration or a management company.
• Lower cost – setup from ≈ USD 50k vs. six‑figure costs for a fund.
• Flexibility – virtually any asset class (even non‑bankable or digital assets) can be included.
• Transferability – investors hold a security that settles through standard custodians or, when tokenized, directly on‑chain.

3 What does it take to issue an AMC?

Below is the typical workflow, followed by the enhanced on‑chain version you can launch with Fume:

Traditional Switzerland / Luxembourg set‑up
• Issuer: a regulated bank, securities dealer, or securitisation SPV authorised to issue structured products.
• Legal docs: base prospectus + term sheet drafted so the product does not qualify as a collective investment scheme under CISA/AIFMD.
• Service providers: paying & calculation agent, listing sponsor and custodian.
• Collateral / guarantee: required if the product is distributed to retail investors.

Tokenised option with Fume
• Issuer: a Fume‑connected securitisation SPV issues both a conventional ISIN and an ERC‑3643 security token.
• Smart‑contract layer: the prospectus terms are mirrored on‑chain, and an on‑chain NAV oracle keeps the token price in sync with the portfolio.
• Automation: corporate actions, fee accruals and coupon payments run autonomously via smart contracts.
• Programmable collateral wallet: makes real‑time collateral monitoring possible and supports proof‑of‑reserves for retail distribution.

4 Acting as the Investment Advisor (and getting paid)

To manage the strategy you must:

1. Hold the right licence
   
   • FINMA “asset manager of collective assets”, EU MiFID investment firm, or equivalent.
2. Sign an advisory mandate with the issuer describing the strategy, trading frequency, leverage, etc.
3. Disclose fees up‑front in the term sheet. Performance, management and structuring fees can all be wired automatically by Fume.

Compensation flows either off‑chain (through the paying agent) or on‑chain (stablecoin payouts triggered by the smart contract).

5 What strategies can an AMC follow?

Almost anything that can be priced daily:

• Listed equities, bonds, ETFs
• Private credit, real‑estate loans or royalties
• Crypto & DeFi yield farming (yes—provided the issuer’s risk framework and custodian support it) citeturn1view2
• Bespoke option or futures overlays

6 Custody & segregation

Traditional assets stay with the issuer’s global custodian.
Digital assets must sit with a FINMA‑registered crypto custodian or a multi‑sig smart‑contract wallet with institutional controls. Token holders remain senior unsecured creditors of the issuer, while the underlying assets are segregated in the custody account.

7 Subscriptions & redemptions

• Traditional path: the investor instructs their bank; the paying agent books a trade via the ISIN; settlement occurs in fiat on T+2.
• On‑chain path: a KYC‑approved wallet sends USDC or USDT to the AMC contract; Fume mints or redeems tokens and updates the on‑chain cap table almost instantly.

8 Who can invest?

• Professional & institutional investors everywhere.
• Retail investors if the AMC is listed on a recognised exchange and collateralised/guaranteed.

9 Is there a maximum AUM?

There’s no hard regulatory cap. Issuers may impose soft limits (e.g. CHF 500 m) to keep the strategy liquid and the guarantee efficient. Talk to us early if you expect the strategy to scale beyond USD 1 billion.

10 AMC or tokenized fund—what’s right for you?

Choose an AMC when you need speed, flexible assets, or smaller tickets.
Choose a tokenized fund when you target European retail across multiple countries or need full UCITS/AIF privileges.

🚀 Ready to move fast?

Book a 30‑minute discovery call and let’s design the perfect vehicle for your strategy: Schedule a call.