Sustainability reporting challenge for alternative investments
The Sustainable Finance Disclosure Regulation (SFDR) entered into force on March 10, 2021. In particular, it requires financial players to enrich their investment policy, which must detail how sustainability risks are integrated into investment processes and they will now have to declare the negative impacts of investment decisions on sustainability factors.
In this context, FARAD I.M. developed a unique sustainable analysis service for alternatives, called GreenEthica Sustainable Scoring System for Alternatives,
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.
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.
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.
Fund Distribution from Extra-EU: New opportunities for licensed players
As is now well known, United Kingdom left the European Union in the context of the Brexit act early 2021. One of the main implications of the new regulation is that UK companies cannot anymore approach directly EU customers while doing their fund distribution businesses.
These companies are now facing the current reality: they lost “overnight” the ability to deal directly with European customers and in many cases, at least temporarily, also the ties with even long-standing customers.
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.
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
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
FINMA restrictions: a challenge for Swiss unregulated asset managers
Originally, Within European borders, the regulator has implemented broad directives useful to clarify just the minimum requirements needed to act as a portfolio manager. Over the years, some countries have adopted strict and severe minimum requirements in terms of initial approvals and ongoing checks on asset managers activities, while some other gave them the possibility to have an easier access to the profession and softer obligations to respect and be aligned with.
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.
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.
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
ITALIAN PRESS RELEASE
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.