Responsible Investment & Corporate Social Responsibility

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Our commitment

Our business principles

As an independent and employee-owned company, trust, responsibility and integrity are at the core of our business principles. We aim at conducting all our business activities in a responsible and ethical manner for the benefit of our investors, employees, shareholders, the local community, and the industry.

We strive to offer investment solutions that offer maximum transparency, liquidity and capacity while avoiding unnecessary complexity in terms of modelling and the use of financial derivatives. We seek to implement our investment programs with the least possible impact on each of the markets in which we operate. While we do seek to take advantage of medium- to long-term price trends, we do not want to be the source of such moves. Trading derivatives plays an essential role in today’s market landscape. In our view, the concept of Responsible Investment goes beyond the incorporation of environmental, social and government factors into our investment process. By engaging into public and regulated exchange-traded futures markets, we act as a risk transfer agent or “speculator” (a trader who does not hedge, but who trades with the objective of achieving profits through the successful anticipation of price movements), taking on risks that other market participants are not willing to take. Managing price risk through the robust identification of medium- to long-term price trends is what we believe to be our core competence and a valuable contribution to our clients’ investment portfolios. We do not seek to capture any risk premia associated with other types of risk factors including environmental, social and governance risk factors. However, we do recognize that such other risk factors will, depending on the type of market, have a greater or lesser impact on the market price of risk, and will in some circumstances contribute to pricing inefficiencies between markets, which may be successfully captured by our investment process.

Responsible Investment Philosophy

ESG factors of our investment decisions

1.
Supports our investors in meeting their own Responsible Investment objectives
2.
Does not compromise the portfolio’s overall risk/return characteristics
3.
Can be implemented in a fully systematic way and in line with our investment mandates

The process for evaluating the inclusion of ESG factors is data-driven and subject to the same rigorous quantitative testing requirements that apply to any other of the firm’s research projects.

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Quantica recognizes that different investors may have different views about integrating ESG factors into their investment universes. Quantica is fully committed to support its investors in their own ESG considerations and their implementation of specific PRIs.

We provide access to our flagship investment program through an array of investment solutions, from commingled funds to separately managed accounts. The latter offer additional flexibility in accommodating custom ESG objectives and requirements, subject to certain operational and investment management constraints.

As Quantica is driven by continuously improving and challenging its fully systematic investment process, it is equally dedicated to refining and challenging its approach to Responsible Investment. Quantica actively engages with clients, peers and relevant industry bodies (such as PRI, SBAI and AIMA) to embrace and promote best practices related to Responsible Investment in the context of alternative investment and trend-following CTA portfolios for the benefit of all its stakeholders.

Futures trading involves substantial risk and is not suitable for all investors.

ESG Policy

Policy on Responsible Investment

Finance Disclosure Regulation ("SFDR") statement

Quantica does not currently consider the Principal Adverse Impacts (PAIs) of its investment process on "sustainability factors" as defined in Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on Sustainable Finance Disclosure Regulation ("SFDR"). Quantica’s flagship QMF Program therefore falls under Article 6 of SFDR. Sustainability factors are listed as environmental, social, and employee matters, as well as matters relating to human rights, anti-corruption, and anti-bribery. Based on our assessment, none of the instruments traded by Quantica have any Principal Adverse Impacts (PAI) on such factors. Consequently, such sustainability risks are also not directly taken into account in Quantica’s remuneration policy.

There is no guarantee that Quantica will be able to successfully implement its ESG policy or make investments in companies that create a positive ESG impact while achieving its investment strategy.

Quantica Capital is UNPRI signatory since 2019

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