For FARAD I.M., which manages funds and portfolios, 2021 was a great year. The amount of assets under its management increased from €650 million to €1.1 billion. Now the company has a new ambition: to offer a fresh range of services to clients in Luxembourg as well those from non-EU locales. These new services include its GreenEthica Sustainable Scoring System, fund distribution in EU, and enhanced services for insurance companies including Fonds d’Assurance Specialiés (FAS).
After 15 years’ experience in managing traditional fund portfolios, we are delighted to expand our offerings.
GSSS: a sustainability and ESG scoring system
One of its most unique new products is the GreenEthica Sustainable Scoring System, known as GSSS. This service details the exposure of any security, investment fund, or more generally portfolio to ESG criteria, and it highlights their alignment with the Sustainable Development Goals set forth by the UN. FARAD I.M. has recently had several requests to perform analyses for alternative funds and holdings, so they are finalising the development of a corresponding dedicated service they will bring to the market soon.
‘Since the end of the Summer of 2021, GSSS offers to investors a reliable and objective means of seeing how mutual funds, ETFs, equities, or bonds fare in regards to ESG standards. We are proud to be able to propose such analysis for alternatives soon and to integrate elements from the European ESG Template too’ -Daniel Capocci
European fund distribution
The expanded range of offers from FARAD I.M. also includes European fund distribution. In this, the company partners with non-European investment advisors who are seeking to enter the European market in order to market third-party investment funds under MiFID II, which harmonises practices across the EU financial markets. In what is very welcome news for Mr Carpocci and his team, FARAD I.M. has already finalised distribution agreements with several partners, and it is working toward finalising several more in the near future.
FAS
The FAS (Fonds d’Assurance Spécialisé), which was introduced in 2015, permits an asset management company to receive from a client an execution-only mandate, as well as be appointed as an advisor. FARAD I.M. now offers such a service and is able to play the role of the so-called RTO platform. The firm can also take on an advisory role and provide clients with investment recommendations, which ultimately empower the subscriber to decide on the allocation and periodic rebalancing. Among the many benefits of this service, says Ms Morsut, is that it can save a client money by avoiding the need to have an investment manager.
We now offer these new services, to execute trading orders as per a client’s wishes as well as assure they are aligned with both insurance rules in Luxembourg and the client’s risk profile.
A special, close-knit team
Those who have worked with FARAD I.M. will be able to attest that one big reason for its success and growth is its team, one that is young and dynamic. ‘We are not fixed in our ways, and one of our greatest strengths is that we can react quickly,’ Mr Capocci says, adding that his team is also both diverse and tightly knit.
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