LUKB taps vestr to launch actively managed products, AMCs

Rick Steves

The partnership with vestr goes to show the growing importance of digitising the active investment management space.

lse

Luzerner Kantonalbank (LUKB) has partnered with Swiss fintech startup vestr to enhance its structured products business with Actively Managed Certificates (AMCs) as part of a new digital offering.

Actively Managed Certificates (AMCs) are securitized portfolios that are dynamically adjusted at the discretion of an investment manager. They can be issued as on- or off-balance sheet certificates and are either privately placed or exchange-listed.

AMCs are fast to market, flexible, and low-cost, and allow investment managers to turn their investment ideas into an exchange-listed product on the same day.

Issuers must create the legal setup for the certificate, while investment managers need to continuously monitor and manage its compositions.

The vestr platform facilitates these workflows and allows investment managers to perform rebalancings and download reports directly on the platform. vestr’s APIs can be connected with the issuers’ downstream systems and brokers to ensure a seamless experience.

LUKB goes digital path

LUKB is going the digital path as active management grows in popularity. Increased demand for digital products and service has triggered LUKB’s response, choosing vestr as its strategic partner to make the best possible offerings to their clients.

vestr will be a key player in the development of the bank’s active management business through certificates. The development of a cloud-based platform allows LUKB to swiftly and elegantly launch and issue AMCs.

This type of structured product offers attractive opportunities for investors to benefit from exposure across industries, regions, or asset classes.

AMC business is all about volumes

Claudio Topatigh, Head Competence Centre Structured Products at Luzerner Kantonalbank, said: “The AMC business is a volume business. This means that you need a large number of AMCs to reach your business goals. This is only possible through integrated automatisation. A software specifically built for AMCs further reduces operational risks. That is why we found the ideal partner in vestr.”

Rico Blaser, Co-Founder and CEO of vestr, commented: “Active management is growing globally. By digitising this process, we enable our clients to make it even more accessible for investors. LUKB’s structured products business stands out with its focus on client needs, and we are proud to support LUKB in this area.”

Asset managers using LUKB’s B2B platform can adjust their portfolios in a few clicks, anywhere and anytime, and create customised reports which they can share with their investors. The partnership with vestr goes to show the growing importance of digitising the active investment management space.

The global AMC market exceeds $1 trillion in assets under management, with the most significant growth happening in the last three years. Depending on the jurisdiction, these products are also referred to as Exchange Traded Notes, Dynamic Equity Notes, Strategy Notes, Strategy Index Certificates, and Actively Managed Trackers.

 

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