Eurydice PCC issued Diversified Agriculture AMC with Cape Town Stock Exchange [CTSE] Debt Issuance
PCC | PROTECTED CELL COMPANY
Guernsey pioneered the introduction of the protected cell company in 1997 and is a company that is a single legal entity with separate and distinct cells. Each cell can issue its own security in relation to the assets and liabilities hold which are segregated by law from those in other cells. In other words, the security you buy is only at risk to the assets you have exposure to, and not to all the assets held in all the cells (as might be the case with a Bank issued security).
AMC | ACTIVELY MANAGED CERTIFICATE
An AMC is a single security that delivers a return linked to a portfolio of assets. They are securitized portfolios that are dynamically adjusted at the discretion of a product manager. In contrast to managed funds, they can be structured in a fast and cost-efficient way making them the investment product of choice for launching investment strategies with a limited amount of seed money.
The most common version of AMC will be tracking a portfolio of equities; however, new generation thinking could easily include hedge instruments, structured products, as well as private or digital market assets.
HOW DO AMC AND PCC BEST SERVE THE INVESTOR?
A Bank issued AMC could enable their clients to borrow money against their assets. They are all transferrable securities, whether equity, bond, fund, ETF, or hedge instruments. Sticking this in another AMC (also security) means the Bank can readily lend to their clients. Banks may offer HNW clients lower-cost access because they make their money from loans. Minimums for these AMCs could be $1-5mn. Limitations of this route include that the investor is tied to one AMC provider, and if it involves a more complex instrument (e.g. structured products), you have to weigh up a single counterparty to trade or collateralise via exchange.
Complex – Non-Bankable
