Both a Tracker Certificate and an actively managed certificate (AMC) turn a portfolio or strategy into a single bankable security with an ISIN. They share the same securitisation plumbing and the same bankable format. The difference is what happens to the underlying after issuance: a Tracker Certificate passively follows a defined basket or index, while an actively managed certificate is actively traded at the manager's discretion. That single distinction drives every other difference.
What a Tracker Certificate is
A Tracker Certificate is a security whose value mirrors the performance of a fixed, predefined underlying — a static basket, an index, or the NAV of an underlying fund or strategy. Once the rules are set, the composition does not change at anyone's discretion; the certificate simply tracks whatever it was defined to track. That makes it ideal for giving professional investors clean, bank-custodied access to an exposure that already exists — for example mirroring the NAV of a private equity or hedge fund so investors can hold it through their bank without subscribing directly. The emphasis is on access and replication, not management.
What an actively managed certificate is
An actively managed certificate also issues as a bankable security with an ISIN, but the underlying is a managed portfolio. The manager holds discretion to trade that portfolio — buying, selling and rebalancing within the rules set at issuance — and the certificate's NAV moves with those active decisions. The value comes from the manager's ongoing decisions, not from replicating a fixed basket.
The core difference
| Dimension | Tracker Certificate | Actively Managed Certificate |
|---|---|---|
| Underlying | Fixed basket, index or fund NAV | Actively managed portfolio |
| Who decides composition | Set at issuance, then static | Manager, with ongoing discretion |
| Purpose | Replicate / give access to an exposure | Run and monetise an active strategy |
| Rebalancing | None (or rules-based only) | Discretionary, can be frequent |
| Typical user | Allocators wanting bankable access | Discretionary / strategy managers |
| Fees | Usually lower (no active mandate) | Management + often performance fee |
When a Tracker Certificate is the better fit
Reach for a Tracker Certificate when the exposure already exists and you simply want to make it bankable and transferable — mirroring the NAV of an existing fund (PE, hedge fund, alternatives) so wealth-management clients can hold it in custody; packaging a fixed thematic basket that does not need active management; or giving investors clean, tradable access to an underlying they could not easily subscribe to directly. With no active mandate, the cost is usually lower and the structure simpler.
When an actively managed certificate is the better fit
Choose an actively managed certificate when the value comes from ongoing decisions — a discretionary equity book, a long/short strategy, a tactical multi-asset allocation, or any mandate where the manager needs to trade and rebalance over time. The AMC gives that manager full discretion within the agreed rules while still delivering investors a single ISIN. The trade-off is a management fee and often a performance fee.
They are not mutually exclusive
Many managers use both across a product range — Tracker Certificates to give bankable access to existing funds or fixed baskets, and actively managed certificates to run discretionary strategies. Both sit on the same issuance infrastructure, so a manager can launch whichever fits each product.
How Noray helps
Noray Capital is a Swiss-based structuring coordinator that issues both Tracker Certificates and actively managed certificates, alongside ETPs and CLNs, across Luxembourg, Guernsey, Cayman and Switzerland. We help you choose the right format for each strategy, set up the compartment, obtain the ISIN and run the lifecycle, typically reaching the market in 4 to 8 weeks.
This article is for informational purposes only and is intended for professional investors. It does not constitute legal, tax, financial or investment advice, nor an offer of any security.