Responsible investment policy
Versor Investments LP (Versor) is a quantitative investment firm where data, innovation, and market expertise drive every decision. Headquartered in New York, Versor’s investment team merges decades of quantitative research with an ethos that fosters ingenuity and innovation. Leveraging modern statistical methods and vast datasets, Versor works to create diversified sources of absolute returns across multiple asset classes.
Commitment to Responsible Investment
Versor is committed to fulfilling our fiduciary obligations and to helping our clients achieve their ESG objectives. We implement responsible security selection in all of our ESG-based investing.
Versor strives to:
- Incorporate ESG considerations in our investments to the extent we believe they improve portfolio risk or return characteristics for our clients.
- Be a responsible steward of our clients’ investments by pursuing long-term value for our clients without compromising our core values.
- Clearly state the ESG objectives of our strategies.
- Foster research and communication of ESG as it relates to the risk and opportunities our clients face through our investment strategies.
- Ensure we deploy appropriate resources in following these guiding principles.
ESG Guidelines
Versor considers environmental (E), social (S), and governance (G) information in all our investment processes to the extent that we think they will improve the risk or return characteristics of our strategies. The ESG information that Versor uses is subject to the same research, implementation, and oversight processes as non-ESG information at Versor.
Versor offers clients certain strategies that include ESG considerations. The implementations vary based on client requests and, as applicable, by jurisdiction. These portfolios may seek reduced exposure (relative to an applicable benchmark) to carbon intensity, controversial weapons, certain fossil fuels, tobacco, or other ESG characteristics. The reduced exposures to ESG criteria may be achieved at the portfolio level or by excluding individual securities issued by companies that meet certain thresholds.
For strategies offered in commingled fund format, details of the implementation are available in the relevant offering documents. For funds of one (separately managed accounts), details of the implementation are agreed with individual clients and described in the investment management agreements.
In addition, Versor has a policy of excluding securities issued by governments of certain countries or by companies domiciled in those countries. In particular, Versor restricts security investments to comply with anti-money-laundering and sanction programs.
Where applicable, ESG-related guidelines are integrated into our portfolio management systems.
Disclosures
While Versor may consider ESG factors when making investment decisions, Versor does not pursue an ESG-based investment strategy or limit its investments to those that meet specific ESG criteria or standards.
It should not be assumed that any ESG initiatives, standards, or metrics described herein will apply to each asset in which Versor invests or that any ESG initiatives, standards, or metrics described herein have applied to Versor’s prior investments. ESG is only one of many considerations that affect Versor’s investment decisions. Other considerations outweigh ESG considerations in certain circumstances. The information provided herein is intended solely to provide an indication of the ESG initiatives and standards that Versor applies when seeking to evaluate and/or improve the ESG characteristics of its investments as part of the larger goal of maximizing financial returns on investments. Any ESG initiatives described herein will be implemented with respect to a portfolio investment only to the extent Versor determines these initiatives to be consistent with its broader investment goals and applicable laws. Accordingly, certain investments may exhibit characteristics that are inconsistent with the ESG initiatives, standards, or metrics described herein.
Versor’s scope to invest for net zero carbon emissions and to meet the commitments set forth depends on the mandates agreed with clients’ and our regulatory environments. These commitments are made in the expectation that governments will follow through on their own commitments to ensure the objectives of the Paris Agreement are met, including increasing the ambition of their Nationally.