Member Spotlight – APS Bank

ReAPS Asset Management: Leading with Innovation, Sustainability, and Excellence in Financial Services

• For those who don't know your company, can you provide some background?

ReAPS Asset Management, a subsidiary of the APS Banking Group was established in 2016, commands a formidable presence in the local financial landscape with over EUR300 million in Assets Under Management (AUM). Specializing in fund management and discretionary portfolio management, REAPS is dedicated to crafting tailored investment strategies to optimize returns while managing risk effectively. With a commitment to excellence and a client-centric approach, ReAPS is poised to deliver superior financial solutions that meet the diverse needs of its clientele, ensuring long-term success and growth in the ever-evolving market environment.

• Can you share a little-known fact about your company?

We are 100% owned by APS Bank plc and in charge of all investment mandates falling under the discretion of APS Bank

• What are you currently working on?

We are currently working on launching more fund products that prioritise investing accoridng to strong ethical principles. At APS, we are deeply committed to expanding our portfolio with offerings that not only promise substantial returns but also align closely with our core values of Environmental, Social, and Governance (ESG) criteria. Our current endeavors are focused on bringing to market a broader range of products that embody these principles. This initiative is driven by our firm belief in the significance of ESG factors as a cornerstone of responsible investing. By integrating ESG considerations into our investment strategies, we aim to not only generate sustainable financial growth but also contribute positively to the broader social and environmental landscape.

Our dedication to ESG matters reflects our recognition of the increasing importance these factors hold for investors, stakeholders, and the community at large. We understand that today's investors are looking for opportunities that are not just financially rewarding but are also responsible and sustainable over the long term. To meet this demand, our team is tirelessly working to identify, develop, and offer products that meet these criteria.

Through our focused efforts on ESG-oriented products, APS is at the forefront of championing sustainable investing. This aligns with our vision to not only achieve financial success but to also make a positive impact on society and the environment. We believe that by prioritizing ESG, we are investing in our collective future, and we are excited about the opportunities this focus brings to our clients and the broader community.

• What are your company's plans and strategic priorities for the coming years?

Our plans is to take our business to the next level for the benefit of all our stake holders. Our primary objective is to deliver strong risk adjust returns for our clients, foster a work environment that guarantees the happiness and satisfaction of our employees and ensure substantial returns to our shareholders. These pillars form the foundation of our strategic priorities for the coming years.

For our clients, we are committed to redefining excellence in investment outcomes. This entails not only diversifying our portfolio offerings but also integrating innovative strategies and technologies to maximize returns. Our focus is on delivering consistent, superior performance that aligns with our clients' evolving needs and aspirations.

For our team members, we recognise that our success is intrinsically linked to their well-being and engagement. We are dedicated to creating an inclusive, supportive, and dynamic work environment that not only attracts but also retains top talent. By investing in our employees' professional development, fostering a culture of recognition, and ensuring their happiness, we believe we can achieve our corporate objectives more effectively.

For our shareholders, our strategy is geared towards sustainable growth and value creation. We understand the importance of not just short-term gains but long-term prosperity. Through prudent management, strategic investments, and a keen focus on emerging opportunities, we aim to deliver robust returns, ensuring our shareholders' confidence and loyalty.

• Are there any projects/achievements that you are exceptionally proud of?

We are proud to have introduced to the local market a pioneering bank deposit product that combines capital protection with the opportunity for enhanced returns. This innovative offering guarantees the safety of the principal amount while linking part of its returns to an actively managed underlying index. This strategic approach affords our clients the best of both worlds: the security of knowing their principal investment is safeguarded and the unique opportunity to benefit from out investment and asset allocation process. As a result, our clients stand to benefit from a potential return stream that surpasses what traditional term deposits offer, elevating their investment experience beyond conventional expectations.

• What in your opinion makes Malta an effective jurisdiction to set up a business?

Malta stands out as an attractive jurisdiction for setting up a business, particularly for investment management companies, due to its myriad strategic benefits. As a member of the European Union, Malta provides businesses with access to the EU's single market, making it an ideal gateway for operations across Europe. The country also boasts a competitive and efficient tax system. Additionally, Malta's strategic Mediterranean location serves as a critical bridge between Europe and North Africa, enhancing its appeal to companies targeting these regions.

The regulatory environment in Malta is robust and in line with EU standards, governed by the Malta Financial Services Authority. This is particularly advantageous for finance and investment firms. The local workforce is highly skilled, English-speaking, and often multilingual, which is beneficial for international business operations.

Moreover, Malta offers political and economic stability, high living standards, and a quality Mediterranean lifestyle, which are attractive for attracting and retaining top global talent. With a well-developed infrastructure, including advanced IT services, Malta presents a supportive environment for businesses aiming for growth and success in a dynamic global market.

• What kind of people/companies in the financial services community would you want to connect with?

In our quest to forge meaningful and mutually beneficial partnerships within the financial services community, we are keen to connect with individuals and companies that share our commitment to innovation, excellence, and sustainable growth. Specifically, we are looking to engage with:

Innovative FinTech Startups: Organizations at the forefront of financial technology, offering cutting-edge solutions that can enhance our service offerings, improve our operational efficiency, or provide our clients with novel investment opportunities.

Sustainable Investment Firms: Companies that prioritize Environmental, Social, and Governance (ESG) criteria in their investment strategies, aligning with our commitment to responsible investing and the long-term welfare of our community and planet.

Regulatory and Compliance Experts: Individuals or firms with deep expertise in financial regulations and compliance, ensuring that we navigate the complex regulatory landscape effectively and maintain our reputation for integrity.

Client-centric Wealth Management Firms: Entities that share our dedication to client success and satisfaction, offering opportunities for collaboration in delivering superior financial advice and investment products tailored to the diverse needs of investors.

Research and Analytical Entities: Companies that specialize in financial market research, analytics, and forecasting, providing insights that can enhance our decision-making process and investment strategies.

Technology Providers: Firms offering innovative financial tools, platforms, and solutions that can help us to provide more efficient, secure, and user-friendly services to our clients.

By connecting with these types of organisations and individuals, we aim to create a vibrant ecosystem that fosters innovation, promotes sustainable growth, and enhances the value we deliver to our clients, shareholders, and employees. Our goal is to build lasting relationships that are based on trust, shared values, and a joint commitment to shaping the future of financial services for the better.

• BIO

Josef has a degree in Accountancy from the University of Malta and was awarded the CFA designation in 2005. Josef started his portfolio management career with HSBC in Malta in 2002 subsequently moving to London in 2005 where he managed fixed income portfolios with ACPI Investments. He then went on to head the discretionary bond portfolio offering at RBC Investment Management UK. In 2012 Josef joined Invesco Asset Management in their London office where he was responsible for managing the firm's flagship global bond funds. In 2018 he moved back to Malta to lead ReAPS Asset Management Limited, the asset management subsidiary of APS Bank. In his role he is in charge of the overall strategic direction and day to day operations of the business as well as the overall risk allocation and investment performance of all mandates under management.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.