As a signatory to the UN Principles for Responsible Investment, we integrate appropriate environmental, social and governance (ESG) factors into the decisions we make.
We strive to adopt an approach that is relevant in the context of macro investing, while working with our industry to build consensus around what we define as ESG best practice for macro hedge funds.
We believe that consideration of material ESG risk factors in our investment decision making process is an increasingly important part of our fiduciary duty to our clients. International capital flows are increasingly impacted by wider ESG considerations, so understanding this dynamic gives insight to our macro economic modelling and helps us identify likely winners and losers in the allocation of international capital.
Our approach has three main pillars:
1. Proprietary ESG
Sovereign Risk Model
We have developed a proprietary framework for assessing and scoring the countries in which we are active against ESG-related factors. We expect that these factors will have an increasing impact on cross-border capital flows. Our internal sovereign ratings provide us with additional context for our medium-term macro view for each country. Since short-term capital flows are heavily impacted by changes in medium- and long-term macro views, we believe that tracking and monitoring these factors will also have implications for our short term trading strategies.
Diversity & Inclusion
Modular seeks the best talent for its team, regardless of nationality, ethnicity, gender, religion, sexual orientation, age or disability. We believe in the value of diverse perspectives and strive to create an environment in which all our people can thrive.
We abide by Singapore’s Tripartite Guidelines on Fair Employment Practices and have signed the employer’s pledge for Fair Employment Practices.
Corporate Social Responsibility
Modular has a strategy for its long term support of social causes. We also encourage all our employees to be aware of local and regional social challenges and to devote themselves to projects that help address those challenges through the commitment of their time as well as through financial donations.
We are proud supporters of EMpower
an organisation which supports marginalised young people in developing countries as well as Synchronicity Earth which supports conservation projects around the world to protect endangered species.