In 2017, the asset management branch of FARAD Group, FIA A.M., continued to achieve organic growth that exceeded both the benchmark and target range. FARAD Group believes that this positive trend is also attributable to the above-average performance achieved by its portfolio management mandates in 2017 – especially for three of the investment profiles awarded a Diaman Asset Manager Awards prize during last five years:

• Conservative Plus: +3,54% vs Morningstar Category - Prudential Balanced EUR: +2,61% (resulting into a +0,93% extra-performance by FIA A.M., i.e. exceeding by almost 36% the reference benchmark performance)*;
• Balanced: +7,92% vs Morningstar Category - Moderate Balanced EUR: +5,66% (resulting into a +2,26% extra-performance by FIA A.M, i.e. exceeding by almost 40% the reference benchmark performance)*;
• Aggressive: +12,18% vs Morningstar Category - Aggressive Balanced EUR: +8,20% (resulting into a +3,98% extra-performance by FIA A.M., i.e. exceeding by almost 49% the reference benchmark performance)*;

“I am pleased and proud to report solid results for 2017. Once again, our business companies, namely asset management, investment funds and insurance brokerage, as well as excellent cross-selling opportunities all contributed to our pleasing yearly result", affirmed Marco Caldana, Founder of FARAD Group. “We are nevertheless constantly monitoring all market developments in order to maintain our innovative, proactive and high-quality approach.”

This continued positive trend confirms that FARAD Group via FIA A.M. is pursuing the right excellence-oriented investment strategy, while primarily targeting institutional clients in a B2B or B4B2B approach. The application of FIA’s expertise to managed accounts, funds, insurance policies and advisory mandates have made a lasting difference to investors and investment advisors who decided to entrust FIA the portfolio management. FARAD Group also continues to see interesting opportunities to support social responsible investment as the recent LuxFlag ESG labelling of two sub-funds managed by FIA, SELECTRA Best of SRI Bonds and SELECTRA Best of SRI Balanced, comes as an addition to the Group’s B-Corp certification. Furthermore, FIA is launching in the first quarter 2018 a third SRI sub-funds, SELECTRA Best of SRI Equity, which will complete the SRI investment scale managed by FIA with a 100% focus on equity investments.

Concerning the outlook for 2018, FIA A.M. portfolio managers forecast quite positive returns for equity markets, but lower than the ones registered this year, whereas the bond market could be negatively affected by the increasing yield trend worldwide and by easing into monetary policies of the major central banks. In more detail, FIA A.M. remain positive on the European equity, led both by positive macro data and fundamental reasons compared with US multiples, which underlines further uptrend opportunities for European stock indexes. We remain confident on the Emerging equity side, Asiatic countries among all, boosted even by USD weakening, which could reach 1,30 threshold vs EUR later this year. On the bond side, US treasury will struggle with three to four interest rate hikes led by FED, as well as its balance sheet easing, which will impact even extra-government bond segments worldwide. In Europe, Core countries should be negatively affected during second semester by US Treasuries increasing yield and by ECB tapering, whereas Peripheral countries will face the uncertainty outcome of the political election in Italy in March. The only positive perspectives into bond market for 2018 should be Emerging Markets, in local currency among all, and absolute return bond instruments with de-correlated market strategies which could perform positive despite perspective bond market conditions.

Last but not least, communication between FIA and its clients has been further intensified based on the new requirements resulting from MiFID II, which have been comprehensively implemented at FARAD Group. As regards services for external asset managers, FIA A.M. will continue to expand its business in Europe, where the Italian branch will be created over the coming months.

* The comparisons have been drawn between FIA A.M.’s gross performance and Morningstar categories performances, based on the net average returns of each category sub-components (funds) in the reference period.