Services

The spectrum of services offered by ETHENEA Independent Investors S.A. includes tasks relating to fund establishment and EU-wide sales licensing, administrative service functions, securities transactions, liquidity management, risk controlling, verification of investment limits, daily monitoring of fund values, asset management controlling, and the provision of support to and coordination of the international sales network.

We would like to provide a description of a number of our services below:

An Overview of our Services

Securities Transactions

As one of the few management companies based in Luxembourg, we handle securities transactions directly. This includes the following activities:

  • Acceptance and placement of securities orders (equities, bonds, derivatives, etc.)
  • Logging of orders in the system
  • Pre-trade system control of possible violations of investment limits
  • Filing and verification of confirmations
  • Tracking of orders for the purpose of generating statistics
  • Verification of booked transactions

Liquidity Management

Liquidity management ensures that we are always in a position to meet our payment obligations in a timely manner and that financial funds are invested at the best possible interest rates. To this end, payment flows from financing activities and from the operational business are integrated into continuous planning.

Risk Controlling

We ensure that the funds we manage are subject to a risk management process that meets statutory requirements in a manner tailored to the individual risk structure. By deploying state-of-the-art technology and processes, we subject the data to analysis and provide uniform controlling and monitoring of the fund's risk structure.

Excerpt from our Catalogue of Services:

  • Risk classification with a variety of appropriate risk measurement processes
  • Value-at-risk calculation
    • Choice of two procedures (Variance-Covariance; Monte-Carlo-Simulation)
    • Calculations at the level of the individual holding and the overall fund
    • Clean backtesting for model validation
    • Stress testing
  • Risk reporting
    • Results from VaR calculation and limit control status (numeric and graphic)
    • VaR decomposition according to various parameters
    • Sensitivity analyses
    • Risk-adjusted performance indicators
    • Risk-return-profile
    • Liquidity risk
  • Escalation procedure in the event of impending limit over-runs

Investment Limit Verification

In contrast to risk controlling, which primarily involves the "measurement of risks", investment limit verification relates to verification of the absolute legal and contractual investment limits, such as for the legal form "fonds commun de placement" (FCP, or "collective investment fund") under Part 1 (UCITS) of the Luxembourg Law of 20 December 2002 Relating to Undertakings for Collective Investment:

  • Maximum of 20% with any one risk carrier
  • Maximum of 10% in unlisted securities
  • Total of securities of issuers in which more than 5% of the fund's assets are invested may not exceed 40% of the fund's assets
  • etc.

Daily Monitoring of Fund Values

We monitor the proper booking of all transactions on a daily basis. In this regard, the following points are given special attention:

  • Transacted purchases/sales of fund assets
  • Claims
  • Obligations
  • Earnings credits
  • Capital measures
  • Invoices charged against fund assets
  • Plausibility of price sources for evaluating prices

Sales Support

ETHENEA Independent Investors S.A. also provides support to international sales teams. In this connection, our services include the following:

  • Coordination of licenses to sell to the public in European countries
  • Conclusion of sales agreements and terms and conditions
  • Calculation of commissions and payment of these to sales partners
  • Preparation of statistics regarding sales of fund units