The document discusses opportunities and challenges in the actively managed certificates (AMC) market. It notes that the AMC market has seen double-digit growth, especially in Asia, with more growth expected. However, scaling AMC businesses also brings challenges around minimizing errors, meeting regulatory requirements, and dealing with cost pressure as complexity increases. New digital platforms aim to help issuers manage AMCs efficiently to remain competitive in this growing market.

1. OPPORTUNITIES AND CHALLENGES IN
ACTIVELY MANAGED CERTIFICATES

2. THE AMC MARKET IS
SMASHING
BOUNDARIES

3. ASIA IS
ROCKING...
LARGEST MARKET
FOR STRUCTURED
PRODUCTS
DOUBLE-DIGIT
GROWTH
SURGE IN AMC
MARKET IN ASIA
SINCE 2016

4. ...AND THE
IS NOT
SLOWING
DOWN
GROWTH
DIGITAL PLATFORM
USAGE, UP FROM <10%
INCREASE IN IAM
REVENUES ATTRIBUTED
TO SPs YOY
25%
35%
OF IAMs EXPECT
MORE GROWTH IN
AMCs
53%

5. FOR DIFFERENT
FOLKS
DIFFERENT
STROKES

6. BOUNDARIES ARE
BLURRY
RACE TO
ZERO COST
FUNDS RESPONDING
TO COMPETITIVE
ENVIRONMENT
INDEX PROVIDERS
ADAPTING TO ACTIVE
MANAGEMENT

7. HOW DO WE
ENSURE THAT
AMCs
REMAIN
VIABLE &
COMPETITIVE?

8. MANAGE AMCs
ANY TIME,
ANYWHERE
GENERATE
CUSTOMIZED
REPORTS
GET INSTANT
FEEDBACK
SERVING
CUSTOMERS

9. COST PRESSURE IS
SIGNIFICANT
MANUAL PROCESSES
PROHIBIT SCALING
NUMBER OF
PRODUCTS AND
THEIR COMPLEXITY
IS INCREASING
SCALING
THE BUSINESS

10. INCORRECT PRODUCT
ADJUSTMENTS
POOR, DELAYED OR
MISSED TRADES
INCORRECT FEE
CALCULATIONS
MINIMIZING
F*#%UPS

11. TAX REPORTING
FULL TRANSPARENCY,
THRESHOLD
REPORTING, ETC
A PERFECT AUDIT
TRAIL IS NECESSARY
REGULATORY
REQUIREMENTS

12. ISINs ARE NOT
UNIQUE
IDENTIFIERS
THE REBALANCING
CALCULATION
VARIES BY ISSUER
EVERY USER
ACTION NEEDS TO
BE LOGGED
THE DEVIL
IS IN THE
DETAILS

13. ONE MORE LESSON:
INTEGRATION TESTS
ARE CRUCIAL!

14. IMAGINE: ONE TOOL
NO BOUNDARIES

15. https://www.vestr.com/

16. VESTREMPOWERS
YOUTO SCALE
YOUR AMC
BUSINESS

18. WHY DID
I JOIN
THE BAND?

19. CONCLUSION
MARKET
GROWTH WILL
CONTINUE
CONSTRAINTS
WILL ONLY GET
TIGHTER
ACTIVE
MANAGEMENT
IS NOT DEAD!
COST PRESSURE
WILL CONTINUE

20. STEFAN.WAGNER@VESTR.COM
RICO.BLASER@VESTR.COM
CONTACT US FOR A DEMO