services
Phosphor formalizes the relationship with the Client, for the different types of service, through a mandate agreement with which the company defines the rules for carrying out the mandate itself as well as the investment profile of the Client which depends on the result of the adequacy examination which consists in identifying the investment objectives, the Client’s risk appetite and his knowledge of financial matters.
Phosphor assists the Client already in this initial but delicate phase of the relationship, which is decisive for establishing the foundations of a lasting and profitable relationship. Phosphor’s attitude to being transparent is not only manifested in operational clarity, but also in the evidence of the remuneration it receives, not receiving, in general, any benefits from third parties under the mandate.
The granting of the mandate does not bind the Client in the choice of the Bank he can maintain the relationship with his custodian or choose to change it. Phosphor is therefore independent of the banking counterpart because it has no direct or indirect interest in the latter. In principle, it is always the Client who chooses his bank. With these depositories, the company tries to agree on advantageous rates that its customers would not normally be able to obtain directly.
APPROACH TO INVESTMENT CHOICES
Phosphor carries out a “macro” type of management therefore with choices linked to the main economic-financial variables such as interest rates, currencies, and the main share indices. The approach underlying the management and financial advisory activities adopted by Phosphor is of the “Top Down” type. This method consists in the initial analysis of the global macroeconomic scenario with a particular focus on Europe and the United States, and then in an evaluation of the various economic indicators, both of the soft types such as PMI (Purchasing Managers Index) and ISM (Institute for Supply Management Index) and hard (inflation, employment and unemployment, GDP and other indices) for each economic area that allows you to make projections on the scenarios determining the structure of the portfolio.
This strategy is developed over a medium-term period with a balanced contribution to performance from the various investment classes (liquidity, bonds, and shares) and currencies. Derivatives and options may be used for hedging or optimization of the investment strategy.
Phosphor carries out its management activities by following investment strategies which, as a rule, have as their objective the preservation of capital and are based on a prudent, or risk-averse, approach.
To do this, mainly liquid instruments are used, avoiding, for example, structured products. This management system also results in a further advantage for the customer since possible conflicts of interest are avoided. When the latter exist, Phosphor takes care to resolve them in favor of the Client.
The investment decisions in Phosphor are the result of the work of a team of experts who meet in the Investment Committee (CI); a group decision-making body was opted for as it was deemed capable of maintaining business continuity more. The members are professionals in the financial and technical fields, including the Risk Manager who has no voting rights and has the task of controlling the risks associated with the approved strategies before their implementation. This body meets monthly and evaluates, through a team decision-making process, the purchase, holding, and/or sale of financial instruments, taking into account the model portfolios proposed by Phosphor to its Clients.
Currently, the company offers four portfolio models: conservative, moderate, medium, and high risk.
