Actively Managed Certificates In Luxembourg

In today’s financial landscape, actively managed certificated have emerged as a popular investment option, offering investors a unique blend of flexibility, diversification, and professional management. 

What are Actively Managed Certificates and How Do They Work in Luxembourg?

Actively Managed Certificates are investment instruments that provide private and institutional investors with access to a diversified portfolio of assets. These certificates are actively supervised by professional fund managers who make informed investment decisions based on their expertise and market analysis. Investing in AMCs allows you to access a diverse range of asset classes, including equities, fixed income, commodities, and currencies.

Luxembourg, well-known for its investor-friendly economic environment, has become a hub for AMCs. The country’s robust legal framework and favorable tax regime make it a perfect jurisdiction for fund managers to establish and manage AMCs. 

The Benefits and Risks of Investing in Actively Managed Certificates

AMCs provide access to professional investment management, allowing investors to benefit from the expertise and experience of skilled fund managers. Thales Captial managers do comprehensive research and market analysis and use advanced risk management strategies to optimize returns and navigate market volatility.

AMCs also offer diversification benefits by spreading investments across various asset classes, industries, and geographical regions. This diversification helps reduce risk by mitigating the impact of any single investment’s performance on the overall portfolio. Additionally, AMCs often have lower investment thresholds than traditional investment vehicles, making them accessible to a broader range of investors.

Still, like with any other investment, AMCs are not risk-free. Market fluctuations can impact the performance of the underlying assets, potentially leading to losses. This is why we emphasize that investors should carefully assess their risk tolerance and thoroughly review disclosure documents before investing.

Actively Managed Certificate Investment Strategies and Criteria

AMCs employ various investment strategies and criteria tailored to meet different investment goals. These strategies include:

• value investing;
• growth investing;
• sector-specific allocations;
• tactical asset allocation.

The choice of strategy mostly depends on market conditions and the risk profile of the target investors.

Our fund managers follow rigorous research processes and use fundamental and technical analysis to identify investment opportunities. 

Actively Managed Certificate Management and Fees

Thales Captial offers AMC management on every step toward your investment goals: the day-to-day operations, investment decisions, and compliance requirements. We have experienced investment teams conducting research, monitoring the portfolio, and adjusting asset allocations as needed.

Just like with most similar services, AMC management requires you to pay management and performance fees to cover the costs of asset supervision and returns that exceed expected numbers.

Actively Managed Certificate Performance and Risks

The performance of AMCs is subject to various risks, including market volatility and currency risks. 

It is better not to consider past AMC performances while making risk and return prognoses. However, investors should carefully review historical performance data, risk metrics, and other relevant information the fund manager provides to understand the risks involved comprehensively.