*This use case is a scenario from our partner GenTwo
Explore the benefits of an Actively Managed Certificate (AMC) on a portfolio of structured products with RainFin’s dedicated issuer solution.
In recent years, structured products have gained significant traction among investors, primarily due to their ability to offer capital protection and uncorrelated returns, features that are particularly valuable during turbulent market conditions. These products present a myriad of opportunities for asset managers, including capital protection, diminished volatility, tax efficiency, amplified returns compared to the underlying asset (leverage), and the generation of positive yields in low-yield environments. Such benefits empower investment managers to strategically allocate risk budgets while generating appealing returns for investors.
Utilizing an Actively Managed Certificate (AMC) to construct a structured product portfolio can yield several advantages for both managers and investors. By consolidating multiple structured products into a single AMC, asset managers can curate a diversified portfolio, granting investors exposure to a variety of distinct investment strategies. Simultaneously, employing a unified vehicle for numerous clients can decrease operational expenses and streamline portfolio management.
Moreover, the active management aspect empowers portfolio managers to modify the portfolio's composition in response to fluctuating market conditions or evolving investor needs. This adaptability can optimize the portfolio's risk and return attributes, presenting investors with the prospect of augmented returns.
In summary, an Actively Managed Certificate offers investors a convenient, diversified, and customizable method for accessing a portfolio of structured products. Additionally, it provides Asset Managers with a cost-efficient approach to managing and distributing these products to their investors.
RainFin distinguishes itself by empowering financial intermediaries to manage structured product portfolios with ease and cost-efficiency, enabling investors to capitalize on the associated benefits. Through GenTwo's innovative issuance framework, Actively Managed Certificates (AMCs) on structured products provide authentic issuer independence and the most extensive diversification possibilities.
In contrast to traditional issuers, GenTwo excels by delivering a bespoke and adaptable issuance platform to its clientele. This platform allows each client the latitude to issue an unlimited number of products while selecting the custodian and broker that best aligns with their unique requirements, resulting in a more personalized configuration.
Furthermore, the platform affords External Asset Managers the opportunity to incorporate their preferred management and performance fees, thereby enhancing customization and adaptability for an elevated client experience. This sophisticated approach not only streamlines the process but also serves to optimize the potential benefits for all parties involved.