Structured Products In Jersey… A Fund Alternative? (AMCS)

What is a structured product or AMC and why does it matter?

Simply described, structured products are a contract with a bank or issuer and the contract has a pre-defined outcome that if certain conditions are met, an investor will receive a particular rate of return or coupon. As such they have become an integral part of many institutional and professional (non-retail) investor portfolios.

An actively managed certificate (AMC) is a debt instrument issued by a special purpose vehicle as a structured product comprising a portfolio of underlying assets (liquid securities, bonds, funds, shares, derivatives, currencies, etc.). Usually the AMC follows a defined composition of underlying assets or an index which changes over the time at the discretion of an external asset/portfolio manager.