Deliver positive, consistent returns across economic cycles, driven by a foundation of integrity, responsibility, people and innovation
The Velox team believe that, for any company to deliver long-term, sustainable value creation, it needs to consider all stakeholders - including regulators, shareholders, employees, partners, clients, suppliers, the environment and the local community. Simply put, to be as focused on its business practices as on its financial performance. We trust that the integration of ESG factors within the organisation and investment strategy allow us to better handle risks and opportunities, and that sustainable business practices drive long-term value creation in much the same way as revenues or costs. As such, Velox has a specific responsibility to act in interests of these stakeholders.
Velox deliver on this responsibility through a combination of firm and investment
ESG Integration and ESG Exclusions
This ethos is embedded within our Mission Statement, Core Values and Commitments. This includes having programmes in place to address gender diversity, having a robust and fully transparent investment process, adhering to best practice on board composition, having solid policies in place to ensure the health and safety of employees, and to minimise any negative impact on the environment.
Velox’s core investment process revolves around integrating technicals, fundamentals, ESG, sentiment and catalysts in order to source repeatable patterns of market behaviour within a controlled environment of risk disciplines. We embrace technology to organise processes and aggregate market data to prepare for efficient analysis. Repeating behaviours around stock specific catalysts are systematically identified using signals developed by the Velox team.
An additional layer of information and insight integrated across an established and robust process
We understand that ESG issues have the potential to influence returns meaningfully over the short, medium and long term, and recognise the importance of a formalised approach towards evaluating and integrating them into our investment strategy. We have created a bespoke Traffic Light System consisting of industry specific Material Risk Factors. The system is integrated across the entire investment process – research, portfolio construction and risk management - with accessibility maximised by our proprietary application, ViA, which actively monitors and displays Velox ESG analysis and key ESG risks that a particular company is facing.
The Velox team also believe that as stewards of capital, we have a duty to direct capital to companies that are good corporate citizens. We exclude long investments in all of the below industries as we deem them unethical. In certain industries where we feel short interest can encourage better practices, we allow shorting.
- CLIMATE CHANGE -
Velox has decided to tackle climate change by turning its focus to Coal and Palm Oil.
- OTHER -
We strongly believe in the importance of active engagement, which we implement predominately through our Core strategies. By engaging in dialogue with companies on their business practices, we enhance our understanding of a company’s exposure to key ESG risks and opportunities, providing us with an additional layer of insight that feeds into our investment decision making. We also follow the SASB framework to direct companies to provide standardised, industry-specific, and materiality-based disclosures as we believe that in order to better evaluate ESG related risks and opportunities within our investment universe, more complete and reliable information is necessary. These efforts help us direct capital to influence more sustainable business practices.
The Velox Fund is a sub-fund of the Melchior Selected Trust, a Luxembourg domiciled UCITS. As securities are not physically held by the Fund it cannot partake in proxy voting.
TRANSPARENCY & ACCOUNTABILITY
The Velox team is committed to providing timely and relevant communication and reporting of its ESG integration efforts both externally (e.g. to key stakeholders such as clients) as well as internally (e.g. to teams, committees and management).
Our monthly newsletter includes a section called 'ESG Spotlight' which exhibits relevant case studies or thematic pieces affecting the strategy.
The team supports international initiatives and guidelines to promote and support sustainable enterprises. We have adopted the UN’s Principles for Responsible Investments (PRI). PRI comprises six principles, as an open global initiative, launched in 2016, which has become a global standard for sustainable investments. The team signed PRI in 2019 and formally fulfils the reporting requirements that being a PRI signatory entails, in the form of the annual Transparency Report which is available on the Velox and PRI website (www.unpri.org). It also seeks to disclose the results of the PRI assessment of its ESG integration efforts.
Together with Velox team’s Core Values and Commitments, these international initiatives, standards and guidelines are an important foundation for the integration of ESG principles through the organisation and investment process.
Velox Capital Partners LLP is an appointed representative of Marble Bar Asset Management LLP which is authorised and regulated by the Financial Conduct Authority.
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