ARTICLE 7/22

Sin stocks vs ESG stocks: is it good to be bad?

The globalisation and digitalisation of trades have resulted in significant economies of scale for growth labelled stocks (the New Economy) over the last decade. In contrast, value stocks (the Old Economy) fell out of fashion amid consistent underperformance, which sent investors to capitulation grounds. This phenomenon was amplified by reflation trades and the “work from home” fad, which have both exacerbated the valuation of a plethora of high duration stocks.

ARTICLE 2/22

SFDR, MiFID and the many shades of Green Investing

In the wake of the ESG gold rush, the European Union hastened to step in and legislate the sustainable taxonomy of investment funds. The SFDR aims to standardise sustainability disclosures and help institutional asset owners and retail clients separate the wheat from the chaff. The goal of this initiative is to normalise ESG reporting and leverage the underlying power of capital markets to meet carbon emissions reduction targets.

ARTICLE 11/21

Reporting ISR pour les portefeulles d'investissment: trois bonnes raisons pour s’y mettre

Le Règlement « Sustainable Finance Disclosure Regulation » (SFDR) est entré en vigueur le 10 mars 2021. Ce texte comprend de nouvelles obligations pour les acteurs des marchés financiers européens quant aux critères IRS (investissement socialement responsable), ESG en anglais. 

ARTICLE 09/21

Blue is the new Green:
the next wave of Sustainable Investing

We have all heard about Green Bond and its siblings : Social Bond and Sustainability Bond, but little has been written about the newborn of the credit family: Blue Bond.

Most institutional bodies - corporates, financial institutions, governments, and municipalities - can issue blue bonds to fund ocean-related assets and to deliver initiatives that support the SDGs (the United Nation’s 17 Sustainable Development Goals).

ARTICLE 6/22

Energy Transition and Human Capital, a new investment solution by FARAD I.M.

In May, the European Commission agreed on a road map to accelerate Europe’s energy transition and reduce dependency on Russia fossil-fuels by committing 300 billion euros between now and 2027. The REPower EU package will kick start a greener economic model by decarbonising not only the energy supply chain, but also the industrial landscape as well as transport and construction. We believe that the focus on energy sovereignty and climate change mitigation will remain top of mind for governments, corporates and consumers over the long-term. 

ARTICLE 1/22

ESG vs non ESG portfolios: investors should look up before reaching the point of no return

COP26 came short of expectations, to say the least, but it is worth mentioning that a growing number of investors are venturing into ESG investing. In 2021, Morningstar reported that global sustainable funds attracted record inflows of $4 trillion  in 2021

ARTICLE 11/21

An analysis of the ESG impact of the largest sustainable focused equity mutual funds

ESG and sustainable investing has become a key selling point for most fund promoters. Do funds that claim to be biased towards sustainability really offer investors an exposure to sustainable investments? Can we see this in an analysis of their exposure and biases? In this article we report the results of an analysis we performed on some of the largest equity mutual funds available in the market. What is specific is that our analysis is focused on the sustainability aspects

ARTICLE 4/22

ESG vs non ESG portfolios: What strikes harder than a slap of Will Smith?

Curbing global #temperature will be a grueling task for developed countries, the largest polluters, all the more so as climate change repercussions are most often felt by emerging nations before others. However, a fast and global remodeling of the #economic engine is needed to avoid irreversible consequences. In this perspective, the IPCC (Intergovernmental Panel on Climate Change) has framed five SSP (Shared Socioeconomic Pathways), or #scenarios, to estimate the level of greenhouse gas emissions under different climate policies – from most to least #sustainable.

ARTICLE 12/21

Good COP Bad COP: a critical view on governments’ environmental commitments

In September 2021, the weighted carbon price was around $40 per ton of CO2. At this level, carbon credits are not accurately pricing the negative externalities of global warming and therefore they do not constitute a deal breaker for companies conducting due diligence on projects that are environmentally harmful, but still very profitable. 

ARTICLE 10/21

Sector rotation hurts, but green investors hold their breath for COP26

After winning fame for “Most Underperforming Asset” over the last few years, commodities are now putting a smile on the face of fossil fuel investors. After months of frustration from lockdowns, the reopening of the economy unleashed a hoard of heavy pocketed avid buyers. Industrial activity also resumed at full throttle. So much so that the imbalance in supply and demand, amplified by supply chain bottlenecks, naturally drove prices higher in everything from furniture and food to cars and particularly energy.

FARAD GROUP celebrates 20 YEARS with the rebranding of the asset management company

FARAD GROUP CELEBRATES 20 YEARS WITH THE REBRANDING OF THE ASSET MANAGEMENT COMPANY

The Luxembourg-based independent financial group presents the new brand identity and a new path of business growth.

FARAD Investment Management complies the SFDR regulation thanks to GreenEthica Sustainable Scoring System

FARAD Investment Management, the management company of the FARAD Group presents GreenEthica Sustainable Scoring System (GSSS) the first sustainable scoring system based on alignment with the SDGs.

FARAD Investment Management announces the relocation in the heart of Luxembourg city-center 

FARAD Investment Management, the independent asset manager is relocating. The company is moving to 11-17, rue Beaumont in the heart of Luxembourg-city. The building has officially open for business starting from 1st August 2021.