Trust is vital when it comes to financial services. After all, you are entrusting your hard-earned money to someone else, and you need to be confident that they will use it wisely. So, what makes a trustworthy financial service provider? First and foremost, they should be transparent. They should also be upfront about any risks involved in any investment products they offer. Furthermore, they should have a good track record. Finally, they should be accessible. Ethos Asset Management Inc., USA, has all the mentioned qualities.
In 2012, Carlos Santos, the company’s founder, established Ethos in Portugal with the intention of putting the company’s newly developed algorithm for trading securities on the market. Ethos is a worldwide initiative for the financing of projects. Ethos provides funding for projects that are sponsored by governments as well as by commercial organizations on every continent and in every industry. The organization offers financial support in the form of capital to structure projects and restructure debt. Ethos has developed a one-of-a-kind risk modulation model, which enables the company to provide finance on terms that are not often offered by conventional financial markets.
Ethos is an innovative trading intangible asset that derives the majority of its value from its capacity for prediction and measurement as well as its compounding ability. At that time, significant investment funds were leasing the algorithm from Ethos, and in exchange, they were paying royalties to Ethos. When Ethos entered the market in 2014 and 2015, these investment funds were trading somewhere in the neighborhood of $300 billion USD through this structure.
Inventor of his algorithm, Carlos Santos plugged it into brokerage accounts, the profits generated paid a percentage value that eventually enabled Carlos to trade with his own funds. Today, Ethos buys and sells Fixed Income Assets and Securities through brokerage accounts in International Investment Banks. Current operations and analysis point to Ethos Asset Management’s worth at 52 billion USD, and the personal wealth of Carlos evaluated to at least 2 billion USD, and he is still only 27 years old.
These investment funds recommended to Ethos that they operate in an alternative structure that may avoid their exposure to the market volatility as a result of the Sovereign Guarantee Crisis in Europe. This volatility of the market was a direct outcome of the crisis which occurred in Europe. They were able to accomplish this by transferring the funds to Ethos, who then traded on their behalf and provided a predetermined profit. This was an extremely advantageous development for Ethos as it led to an increase in the total assets to a new level and, at the same time, made it possible for Ethos to acquire higher spreads when purchasing securities. In 2019, when Carlos Santos presumed a position of relevance as an advisor for Monetary Policy in Dollars, for independent purposes, the board of directors of Ethos made the decision to change the route the company was going to take and to no longer lease the algorithm or trade on behalf of third parties.
Ethos progressed to the next phase of its development, during which it only traded its own funds. Throughout all of these years, and returning back to 2012 for the purpose of hedging and rebalancing its asset allocation in trading, Ethos has invested twenty percent of its assets in project finance while continuing to keep the other eighty percent invested in trading.
Ethos’s projects have primarily concentrated on the energy, infrastructure, and industrial sectors in order to fulfill this diversification objective. The majority of these have taken place in the private sector, and each one had a minimum ticket price of US$50 Million.
Ethos Unique Model Of Philanthropy
Many financial companies are increasingly taking on a more active role in philanthropic efforts. While there are a number of reasons for this shift, one of the most important is the growing recognition of the role that businesses can play in addressing social problems. By partnering with charities and other organizations, Ethos is helping to increase the reach and impact of their giving. In addition, by aligning their philanthropic efforts with their business goals, they are building goodwill and improving their bottom line. As more and more companies will adopt this approach, it is likely that the financial sector will play an increasingly important role in the drive to tackle global challenges.
Ethos’ unique model of philanthropy employs circumvents the issues that are frequently observed in the market, namely the fact that foundations do not allocate funds to their missions and that financial companies do not have the time or the structure to concentrate on social responsibility on a daily basis. The Philanthropic Financing Facility (PFF) began as a standard financing facility; however, if the client successfully accomplished its economic and social goals, which could be evidenced and confirmed by an independent audit, Ethos would convert the financing into a grant that did not require repayment. If a client wishes to apply for the PFF, they will be required to go through the same onboarding and approval procedure as any other client. This means that Ethos will evaluate the submitted projects in the same manner that it would any other project. The facility would ensure that only the “proper” use of the funds would qualify to change the facility into a grant, and it would monitor how the funds are spent.
Such innovation in the Philanthropic world can have a huge impact on society and the economy where Ethos can be active, and this is represented in the 49 million USD awards awarded by Ethos during the year 2021. Ethos’s trustworthy reputation as a provider of financial services is a direct result of its active participation in the community.