FARAD IM is specialized in portfolio management services and fund management services (with or without third party advisors). Our service offering is split between traditional or mainstream products & services and our GreenEthica offering. The mainstream or traditional offering is our historical offering in which we have 10+ years of experience and for which our edge is our experience and processes. Our GreenEthica offering is our more recent offering developed over the last five years that rely on our ESG and sustainable experience.
More details on these services below
In a cross-border environment with an evolving complex regulatory environment, you need to master financial and regulatory aspects to structure a fund in an optimized approach. As Investment Managers for funds, we have extensive expertise in a broad range of asset classes. As a multidisciplinary team, we propose to our client our substantial experience with formation of investment funds.
We follow the latest regulatory developments from the industry thanks to our connection with recognized bodies (LPEA, ALFI…), which allows us to give you the right input at the right moment.
As regulation is getting more complex, fund managers, institutional investors, individuals, administrative agents and other professionals of the financial sector need more assistance in fund formation and regulatory advice. For the past 15 years, we have assisted our clients for a wide scope of funds. We advise on all matters of compliance with regulatory legislation related to AIFMs, SIFs, SICARs, RAIFs, and UCITS, including AML legislation, MiFID/MiFIR, EMIR, SFTR and GDPR.
As part of the review and enhancement of our services, we recently developed an extended version of our standard service to clients who aim to set-up an investment fund with our support. The service denominated “Full Investment Manager” has the aim to play the role of a “one stop shop” for our clients. Contact us for more information.
At FARAD I.M. our core business is portfolio management. We have an extensive experience in managing portfolio and we do it on the back of our own GreenEthica sustainable investment process or with the help of third party advisors. We provide such services on private accounts, through insurance wrappers and through investment funds. Key counter-parties for those being banks, insurance companies and advisors.
This advisory service (with third party advisors) is ideal for counter-parties who do not have the required license to proposed investments and/or investment strategies to their client. We can manage the assets of their client and implement the agreed investment strategy thanks to our CSSF license.
This product is gaining of important because the PSF license is more and more difficult to get and the minimal requirements needed to start a new regulated business are getting more and more stringent over time.
The execution only is offered mainly to FAS (Fond Assurance Specialisé) clients. The service’s aim is to allow clients who subscribe this type of insurance contract to find a professional counterparts to carry on investment compliance pre-checks and place trading orders with the custodian bank/broker.
FARAD I.M. with its expertise of more than 15 years as discretionary portfolio manager in insurance business and with its technological interfaces with custodian banks guarantees orders are executed in timely manner and respecting investment restrictions. On top of order execution a constant monitoring of the insurance portfolio is maintained over the time.
GreenEthica expertise regroups all the services or initiatives that are related to sustainability and ESG. Within FARAD I.M., this service offering combines a dedicated Sustainable Portfolio Management expertise as well as the GreenEthica Sustainable Scoring System. The GreenEthica concept has been developed a couple of years ago within FARAD Group.
FARAD Group GreenEthica expertise regroups all the services or initiatives offered by the Group that are related to sustainability and ESG. Within FARAD I.M., this service offering combines a dedicated Sustainable Portfolio Management expertise as well as the GreenEthica Sustainable Scoring System.
Sustainable Finance Disclosure Regulation (SFDR)
The Sustainable Finance Disclosure Regulation (SFDR) is the European Regulation (EU) 2019/2088 on sustainability-related disclosure requirements in the financial services sector. This regulation require financial market participants and financial advisors in the EU, to disclose on the integration of sustainability risks and the consideration of adverse sustainability impacts in our processes. SFDR is an important milestone in the EU Commission’s action plan on sustainable finance.
Discretionary portfolio management is our core business. By signing a management mandate, the client allows us to act as managers, or directly implement the portfolio allocation choices based on the risk profile he has opted for.
The seasoned know-how of our investment team is reflected in an investment process created in-house.
By capturing the best investment opportunities and strategies on the global financial market, our proprietary process has been designed to generate superior performance compared to peer groups’ market benchmarks through a top-down, multi-asset approach.
The management of the client’s assets is entrusted to FARAD I.M., which on a day-to-day basis monitors markets and portfolio positioning re-balancing, when needed, the risk according to new market’s environment, mood and projections. Customers may keep their assets in their own trusted bank, or rely on the 26 custodian banks in Europe, with which FARAD I.M. has developed strong partnerships.
The discretionary portfolio management service may be delivered both for unit-linked insurance policies and for current accounts. We have been working for years with 22 leading European insurance companies for the management of Dedicated Internal Funds and for Collective Internal Funds.
The GreenEthica Sustainable Scoring System (GSSS) is a unique service proposed by FARAD I.M. that gives the exposure of any security, fund or portfolio to ESG criteria and their alignment to the Sustainable Development Goals defined by the United Nations.
This service provide a reliable and objective way for investors to see how mutual funds, exchange-traded funds (ETFs), equities and/or bonds are meeting environmental, social, and corporate governance (ESG) challenges.
This assessment can be done in absolute terms or relative to a benchmark and it can be done on any kind of portfolio. It is not limited to portfolios with a sustainable or ESG focus.
The GreenEthica Sustainable Scoring System takes also in consideration a large set of factors including controversy level and carbon footprint data. It relies on a recognized third party data provider and on FARAD I.M. historical expertise in the ESG & sustainability field.
Domiciliation: we are authorized as domiciliation agent to offer domiciliation services including corporate secretarial services and administrative assistance services.
Currently we offer the following services:
Provision of a registered office
administration and banking assistance
Financial brokerage: we are authorised to offer brokerage services on financial instruments such as bonds and equities granting efficacy and discretion throughout the trading activity. Moreover, we can act as brokers on structured products. Thanks to the acquisition and development of know-how and in-depth skills in terms of strategies and products, we offer an independent service integrating both research and selection as well as product creation and monitoring while striving to craft the most competitive solution.