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Fondaco is an asset management company dedicated entirely to institutional investors.

Our activity aims to create a link between financial institutions, markets, managers and financial innovation.

Protecting our investors’ capital is our core business. We help investors define their needs, their target returns and their risk appetite, identifying the best solution for every Financial Institution.

Integrity, openness and a transparent approach towards our investors and our colleagues are an essential part of all our activities.

We believe in long-term partnerships with our investors and with the best players in the market.

Discipline is the backbone of every stage of our investment process.

Complex systems can be understood only by looking at them from different points of view. Financial markets are complex by definition and, as such, require a multi-faceted approach when it comes to analysis and monitoring.

Our risk management department combines solid quantitative expertise with investment experience, flexible operation using the latest methods and an ability to handle a variety of risk factors, working with traditional and alternative investments. We apply a combination of traditional portfolio analyses (composition, performance, value at risk, stress test, sensitivity) and more evolved analyses (factor analysis, Private Market cash flow simulation).

Right since the outside, risk management has been an integral part of Fondaco’s strategic processes, starting with investment processes. Solid governance ensures that our risk management department takes both an independent and proactive stance in relation to matters of investment, and that its presence is felt in the investment committees.

Besides supporting the company’s internal analytical activity, our risk management department is responsible for drawing up periodic reports for our investors, providing prompt, clear and precise information on portfolios. We have abandoned the “traditional” concept of monthly reporting with a real-time interactive portrayal of events on a platform developed in-house, the Fondaco Reporting Portal.

The financial world is complex and it evolves constantly. Research is an essential driver of innovation and development to promptly identify market trends, structural changes in asset management, and areas of investment.

Here at Fondaco we have created a cross-company centre of excellence to draw on the company’s various skills, from risk management to traditional management, from alternative management to trading. Thanks to the interaction between different but complementary visions and experiences, the Market Insights and Analytics team is able to produce periodic analyses on long-term issues relating to the asset management industry, such as the applications of artificial intelligence, also focusing on medium-term economic issues, such as the impact of the US elections on the financial markets and on strategies and models.

The organisation of the research team and its distinctive flexibility means that it is always able to intervene promptly with regard to emerging new themes, such as the study of the main implications of the Covid-19 epidemic on the financial markets.

The team’s research is used to support the discussions of the Fondaco Group committees, and our investors have access to this research, along with webinars and explanatory calls with our specialists.

We see the construction of asset allocation as a way to help investors pursue their goals. Experience teaches us that there is no such thing as a “perfect” portfolio, but rather one that is best suited to the needs, limits and governance of each institution.

This means that the end result is not simply an allocation between different asset classes but also includes the definition of a process, the identification of the tools to be used and the choice of the risk parameters to be monitored until the investment decisions are made.

The identification and construction of the target portfolio is just the first step, followed by the continuous monitoring of the allocation and the sharing of all pertinent analyses and any changes resulting from market dynamics or changing investor needs.

The process is extremely flexible: it is possible to involve the institution itself or any advisors, include the selection of managers and combine traditional and alternative asset classes, also integrating them with instruments already held by the investor.

All the tools and expertise we have developed in our business are placed at the disposal of investors, from direct management of specific asset classes and multi-assets to risk control, counterparty selection and the fulfilment of orders, along with the creation of dedicated investment vehicles.