Socially Responsible Investing

Integration of ESG in Investment Process

As a signatory for the Principles of Responsible Investment (“PRI”), Aetos is committed to promoting socially responsible investing and believes that actively incorporating Environmental, Social and Corporate Governance (“ESG”) factors is prudent from a fiduciary perspective and additive to its investment process. Our Socially Responsible Investment Policy explicitly recognizes the importance of including ESG considerations to help us make more informed investment decisions.

We are committed to raising the awareness of ESG and other socially responsible investing initiatives in the alternatives investing community through numerous avenues, including our active participation in one of PRI’s hedge fund strategy working groups that is working to define guidelines for hedge funds with respect to socially responsible investing.

We implement an ESG-approach in our investment process through the following steps:

  • Actively incorporate questions into our manager due diligence process to determine a manager’s integration level
  • Rank managers on the utilization of ESG factors, where relevant to its investment process

 
Building Socially Responsible Portfolios for Clients

Aetos can design portfolios based on a client’s preferred socially responsible approach, including a sustainability/thematic-based approach, such as renewable energy or clean water, incorporating ESG factors into the investment process or including negative screening. Incorporating ESG factors through absolute return strategies can accomplish the twin goals of providing diversification through less correlated assets while meeting a client’s socially responsible objectives.