Certificates
Actively Managed Certificates (AMCs) are investment tools that allow investors to access actively managed portfolios through a tradable certificate. Issued by financial institutions, AMCs reflect the value of an underlying portfolio of assets managed by an AMC manager.
These assets can include stocks, bonds, commodities, and alternative investments. AMCs combine the flexibility of a managed fund with the simplicity and tax efficiency of a certificate.
AMCs are transparent, allowing investors to view the real-time value of their investments and receive regular updates on portfolio composition and performance. They can be customized to match different risk profiles and investment goals, offering diversification across various assets and markets.
Liquidity varies; some AMCs trade like stocks with high liquidity, while others may be less liquid, depending on the structure and the market’s trading policy. AMCs suit investors seeking active management without the complexity and higher costs of traditional funds.
MAM Accounts – Trading
Managed Accounts Manager (MAM) accounts are specialized trading accounts managed by experienced traders or teams, offered by certain brokers. These accounts allow investors to leverage professional trading strategies without personally engaging in market operations.
To access a MAM account, investors must register with a broker, completing identity and residency verification. After approval, they can select a trader or team to manage their investment, reviewing their track record to ensure alignment with their investment goals and risk profile.
MAM accounts provide high transparency, offering regular performance reports and transaction details. Despite being managed by traders, the accounts remain in the investor’s name, ensuring legal control over funds under applicable financial regulations. Traders handle operations based on the agreed strategy but cannot deposit or withdraw funds, adding a layer of security. Withdrawals are possible but may be subject to timing and method restrictions to maintain account stability and long-term strategy adherence.
MAM accounts often require higher minimum investments and careful evaluation of the manager’s trading style and risk level to ensure compatibility with the investor’s financial goals. They offer a solution for investors seeking professional expertise with high transparency and legal control over their funds.
Bond
Corporate bonds are debt instruments that companies use to raise funds from investors. These bonds operate like loans, where the company commits to repaying the borrowed amount with interest at a future date. When a company needs capital for expansion, new projects, or debt restructuring, it may issue bonds. These bonds have a nominal value, representing the amount repaid to investors at maturity, with interest payments made periodically or at maturity.
Investors purchase bonds either at their nominal value or a market price influenced by market conditions and the company’s financial stability. The company pays a fixed or variable interest rate, known as a coupon, throughout the bond’s duration. Upon maturity, the nominal amount is repaid, completing the financial obligation.
Bond issuances are regulated by national financial authorities, ensuring companies disclose bond conditions and associated risks. Companies must provide regular financial statements to help investors assess default risk. However, corporate bonds carry risks, including credit risk, where the company might struggle to make payments, liquidity issues, making it hard to sell some bonds quickly, and market risk, where interest rate changes affect bond values. Despite these risks, corporate bonds are essential for corporate financing and offer investors potential interest income.