DISCOVER THE ADVANTAGES 

Harnessing LegalTech, RegTech and Fintech

A uniquely flexible, full-lifecycle investment product delivery platform for would-be investment managers frustrated by the boundaries, restrictions and unnecessary regulation which prevents new investment propositions from reaching the market.




LATEST FEATURES

Bekarys delivers


Flexibility

Our investment products are designed to suit your unique investment needs, offering the flexibility to optimize your portfolio in real-time.

Speed to Market

Bekarys will deliver a complete solution from inception to first NAV within six weeks. Why wait for regulators who don't understand the importance of time to market.

Expertise

Our seasoned team of experts boasts years of experience in the finance and legal sector, making them the natural choice for capital markets solutions.

Focused Strategies

Without regulatory limitations including diversification rules, Bekarys offers easier implementation of focused investment strategies.

Offshore and Private Funds

Bekarys creates access for offshore and private funds to onshore investors. Digital settlement architecture integrates to Euroclear Clearstream and DTC. Access is easier. Capital raising is simplified.

New Distribution Channels

Bekarys offers integrated marketing and channel management along with investment management tools including calculating fees due to channel partners. No CRM system can do this. New channel partners love it.


FINTECH

Bekarys for your investments


Frequently Asked Questions

Overview

AMCs are debt securities representing a portfolio of assets actively managed by an investment manager. The value of the certificate is linked directly to the performance of these underlying assets. Unlike traditional funds, AMCs do not require a complex legal structure; they are contractual agreements between the issuer, the investment manager, and the certificate holders. This structure allows AMCs to offer a high level of flexibility, enabling exposure to a broad spectrum of asset classes, including equities, commodities, fixed income, and alternative assets.

AMCs offer flexibility and diversification, allowing investors to focus on specific investment strategies or themes. They are usually more liquid than AIFs since they are listed and traded on stock exchanges. AMCs generally have lower fees compared to AIFs due to fewer regulatory burdens. While they are not subject to the same level of regulation as AIFs, AMCs still have to comply with certain disclosure requirements, ensuring investors receive essential information about the certificate and its underlying assets.

AIFs are collective investment vehicles that pool the capital of multiple investors to invest in various types of assets, such as private equity, hedge funds, real estate, and commodities. Under English law, AIFs can be structured as limited partnerships, investment trusts, or open-ended investment companies (OEICs). In contrast, AMCs are not structured as separate legal entities but rather as contractual agreements between the issuer, investment manager, and certificate holders.

AMCs are regulated as debt securities under English law, and their issuers must comply with the FCA’s Prospectus Rules, Disclosure Guidance, and Transparency Rules (DTR). Unlike AIFs, AMCs are not subject to the AIFMD or CIS regulations. However, the investment manager responsible for the certificate’s underlying assets must be suitably authorised and adhere to applicable rules and guidelines.

The first step in establishing an AMC programme involves the investment manager and issuer creating a contractual agreement that outlines the terms and conditions of the programme. This agreement includes details about the investment strategy, types of assets in the portfolio, roles and responsibilities of the counterparties, and associated fees and charges. Simultaneously, the investment manager prepares an investment memorandum for the AMC, providing potential investors with detailed information about the programme.

Investors can redeem their certificates by selling them on the stock exchange, just like any other listed security. If the AMC programme reaches its maturity date or is terminated for any reason, the issuer will redeem all outstanding certificates. The assets in the portfolio are sold, and the proceeds, minus any fees and charges, are distributed to the certificate holders.

Parties

The investment manager is a professional or firm that makes the investment decisions within an AMC programme. It is responsible for the active management of the portfolio linked to the AMC, aiming to generate returns for the certificate holders. The investment manager uses its expertise, research, and judgment to buy and sell assets within the portfolio based on an agreed-upon investment strategy.

A prime broker is a financial institution, typically a large bank or investment firm, that provides a range of services to investment managers, hedge funds, and institutional clients. These services may include securities lending, financing, trade execution, and risk management. In the context of AMC programmes, prime brokers play a vital role in facilitating the management of underlying assets, enabling investment managers to focus on delivering robust returns for investors.

The custodian is an independent third party, usually a reputable bank, responsible for the safekeeping of the assets linked to the AMC. They ensure the assets are securely held and accurately recorded. The custodian also handles the settlement of trades executed by the investment manager and manages corporate actions related to the assets.

AMCs are typically more liquid than AIFs because they are listed and traded on a stock exchange. This listing allows investors to buy and sell certificates with relative ease, similar to other exchange-traded securities.

The servicer handles the day-to-day administrative and operational tasks of the AMC programme. These tasks include calculating the NAV, settling trades, processing income and corporate actions, monitoring compliance, and providing investor reporting. By managing these critical functions, the servicer allows the investment manager to concentrate on asset management.

Managing risk is a vital part of the investment manager’s role. They identify, assess, and mitigate various risks that could impact the AMC’s portfolio, including market risk, credit risk, liquidity risk, and operational risk. The investment manager employs techniques like diversification, hedging, and careful asset selection to control these risks.

Technical

Given the flexibility of the SPV wrapper we can accommodate smaller size for launch than a fund, though for sustainability we recommend targeting stable AUM of at least USD 10mln. More complex strategies have higher operational overheads in managing the strategy and so we encourage larger minimum sizes to cover this.

One year and beyond. There are no limitations other than those set by the investment manager.

Daily valuation statements will be provided together with contributions to Bloomberg and other market data systems.

Payments from the underlying assets can either be paid out on receipt, on a periodic basis (quarterly or semi-annually) or will accrue in the cash account.

Should the custodian default investors are protected since the assets of the issue are segregated and can be transferred to an alternative custodian without suspending the notes (provided the transfer can be done in an orderly manner). Custodian replacement downgrade triggers can be included in the documentation.


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