Why sustainable finance?
Since inception in 2001, at FARAD Group we have developed a unique approach to business and we have been always driven by a set of solid values defining our identity. From the very start until today, our team has embraced these values under a shared strong belief that finance must take an active part in contributing to the wellbeing of our society. We are convinced that a thoughtful sustainable approach to business is not only a way to act professionally and responsibly, but also an essential competitive advantage in a changing world where ensuring the positive impact of the investment decisions will guarantee the companies’ success on a long-term basis.
This common feeling becomes reality through a proactive integration of the Environmental, Social and Governance (ESG) criteria in all the organisation’s departments and business choices aiming to foster sustainable impact finance initiatives by providing innovative advisory, and management support services.
A proprietary ESG investment process has been implemented and integrated within the portfolio management process.
Before investments are performed by the appointed Investment Manager, each single target investment has to be assessed via the ESG Score Card, which takes into account qualitative and quantitative metrics for the ESG segments. Each Target Fund is rated in a range from 5 (the highest) to 0 (the lowest).
The analysed Target Fund is accepted only if its overall score is higher than 3.5 over 5. No exceptions will be granted. Due diligences and active engagements are performed with the relevant fund managers to better understand the data received and access their accuracy / reliability.
Data from all the Target Funds are monitored and reviewed at least once per year, including:
The Investment Manager monitors the ESG score of its investment portfolio, both at single security level and on an aggregate basis. ESG scores on each individual investment are taken into consideration alongside the traditional criteria of analysis and evaluation: this means that the Investment Manager ensures that its financial portfolios are financially efficient and as much sustainable as possible.
The sustainability risks that the Sub-Fund may be subject to are likely to have an immaterial impact on the value of the sub-fund’s investments in the medium to long term.
The Investment Manager is furthermore committed to implement one or more of the following methods within its investment strategies or investment processes, and therefore monitors the extent of the application of these methods in the underlying funds: