RIA CEO Dustyn Lanz explores why individual investors are taking climate change and the associated risks seriously in his latest Investment Executive column.
Evidence shows that investors of all types want to know about climate-related risks now, and they expect their advisors to help them stay informed.
TORONTO – December 6, 2018 – The vast majority of Canadian investors are concerned about climate change, says a new survey from the Responsible Investment Association (RIA).
The 2018 RIA Investor Opinion Survey, which is based on an Ipsos poll of 800 individual investors in Canada, found that 80% of respondents are concerned about climate change and the environment. It also found most investors view climate change as a financial issue: 70% of respondents believe climate change will have negative financial impacts on companies in some industries within the next five years, and 79% believe this to be true within twenty years.
Most investors recognize climate change also presents opportunities: 66% of respondents said they would like a portion of their portfolio to be invested in companies that are providing solutions to climate change and other environmental challenges.
The survey, sponsored by AGF Management Limited (AGF), also shows Canadians want their financial services providers to practice responsible investing: 86% of respondents agree that financial advisors and institutions should be knowledgeable about how environmental, social, and governance (ESG) risks could affect their investments, and 81% would like their financial services provider to inform them about responsible investments that are aligned with their values.
“This research shows Canadian investors are serious about climate change and societal issues, and they want their financial services providers to take these things seriously as well,” said Dustyn Lanz, CEO of the Responsible Investment Association. “Canadian investors understand climate change presents financial risks, and they want to invest in responsible solutions. This highlights a very compelling opportunity for investment professionals.”
“As a leader in the development of sustainable investing initiatives, AGF is pleased to hear that Canadians are committed to investing in solutions that contribute to building a sustainable future,” said Kevin McCreadie, Chief Executive Officer and Chief Investment Officer, AGF. “We believe that integrating consideration of ESG factors into our investment decision-making and ownership practices will contribute to better investment outcomes for our clients – and this is true across all of our investment management teams.”
Highlights
View the full report here: https://www.riacanada.ca/research/2018-ria-investor-opinion-survey/
About the Responsible Investment Association
The Responsible Investment Association (RIA) is Canada’s industry association dedicated to responsible investment (RI). Members include mutual fund companies, financial institutions, asset management firms, advisors, consultants, investment research firms, asset owners, individual investors and others interested in RI. Our members believe that the incorporation of environmental, social and governance (ESG) factors into the selection and management of investments can provide superior risk adjusted returns and positive societal impact.
About AGF Management Limited
Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.
AGF has investment operations and client servicing teams on the ground in North America, Europe and Asia. With nearly $38 billion in total assets under management, AGF serves more than one million investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.
Media Contacts
Nick Buccheri
Manager, Communications & Digital Media
Responsible Investment Association
+1 416-461-6042
Amanda Marchment
Director, Corporate Communications
AGF
416-865-4160
On November 6th, 2018 we partnered with Finance Montréal and NEI Investments to launch the french version of the 2018 Canadian RI Trends Report. We were joined by nearly 100 RIA and FSI members and peers at Espace CDPQ in Montréal. Remarks were delivered by RIA board members Milla Craig, founder and president of Millani, Roger Beauchemin, CEO of Addenda Capital, RIA CEO Dustyn Lanz and Maryna Koretska, Vice President of Sales at NEI Investments.
It’s official: we are now at a historical junction for responsible investing (RI) in Canada.
During some recent public speaking engagements, RIA CEO Dustyn Lanz argued that we have reached a tipping point for RI in Canada. He made this argument based simply on what the RIA has been seeing in the market. But that’s no longer just his viewpoint; it’s a fact. New data show that RI now makes up a majority of assets under management (AUM) in Canada.
November 1, 2018 – Toronto – The Responsible Investment Association (RIA) is pleased to announce that Horizons ETFs has joined the RIA as anAssociate Member.
“We are delighted to welcome Horizons ETFs as an Associate Member of the Responsible Investment Association,” said Dustyn Lanz, Chief Executive Officer of the RIA. “We applaud Horizons for moving into the RI space, and we look forward to working with them to advance responsible investing in Canada.”
The RIA is Canada’s industry association dedicated to advancing responsible investment, which refers to the incorporation of ESG factors into the selection and management of investments. RIA membership has grown rapidly in recent years as investors increasingly seek investments that align with their values and manage exposure to ESG risks and opportunities.
“More than ever, Canadians are looking to invest their money in alignment with their social and environmental values for the betterment of our society and the planet,” said Steve Hawkins, President and CEO of Horizons ETFs. “We’re proud to partner with the RIA and to launch our first responsible investing product, the Horizons Global Sustainability Leaders Index ETF. We look forward to working with the RIA to empower Canadians to invest in accordance with their beliefs.”
Horizons ETFs has more than $11 billion of assets under management and 84 ETFs listed on major Canadian stock exchanges. Horizons ETFs Management (Canada) Inc. is a member of the Mirae Asset Global Investments Group.
About Responsible Investment Association
The Responsible Investment Association (RIA) is Canada’s membership association for Responsible Investment (RI). Members include mutual fund companies, financial institutions, asset management firms, advisors, consultants, investment research firms, asset owners, individual investors and others interested in RI. Our members believe that the integration of environmental, social and governance (ESG) factors into the selection and management of investments can provide superior risk adjusted returns and positive societal impact. To learn more about the RIA, please visit www.riacanada.ca.
Media Enquiries
Nick Buccheri, Manager, Communications and Digital Media, RIA, +1 416-461-6042
The Responsible Investment Association (RIA) conducts quarterly performance reviews of responsible investment (RI) funds in Canada. Data provided by Fundata shows that Canadian RI mutual funds performed well in Q3 2018. In the three-month period ending September 30, 2018, a majority of RI funds outperformed their industry average in their respective fund classes.
More than two-thirds of RI funds with a five-year track record and more than half of funds with three-year and 10-year track records outperformed their industry averages, highlighting the long-term value of incorporating environmental, social and governance factors into investment decisions. Nearly three-quarters of funds with a one-year track record outperformed, and 57% of funds outperformed for the three-month period ending September 30, 2018.
On October 23rd, 2018 we partnered with NEI Investments to launch the 2018 Canadian RI Trends Report. We were joined by more than 80 RIA members at Montecito Restaurant in Toronto. Remarks were delivered by RIA board members Ian Robertson of Odlum Brown and David Rutherford of NEI Investments, and RIA CEO Dustyn Lanz.
For the first time, a majority of Canadian assets are incorporating environmental, social and corporate governance issues
TORONTO – October 24, 2018 – The 2018 Canadian Responsible Investment Trends Report reveals that responsible investment (RI) is continuing to experience rapid growth in Canada. The biennial report, released today by the Responsible Investment Association (RIA), tracks investments that incorporate environmental, social and corporate governance (ESG) criteria.
According to the latest available data, assets in Canada managed using one or more RI strategies increased from $1.51 trillion at the end of 2015 to $2.13 trillion as at December 31, 2017. This represents a 41.6% increase in RI assets under management over two years.
Responsible investing now accounts for 50.6% of Canadian assets under management, up from 37.8% two years earlier. This growing market share shows that Canadian investors increasingly view ESG factors as important components of investment decisions.
“Surpassing the fifty percent threshold marks a major milestone in the history and development of responsible investing in Canada,” said Dustyn Lanz, CEO of the Responsible Investment Association. “Investors in Canada and around the world increasingly recognize that a company is more than just the numbers, and incorporating ESG factors into investment decisions can help to identify resilient, well managed companies that outperform over the long term.”
“We’re very proud to have NEI Investments sponsor the RI Trends Report,” said Fred Pinto, SVP, Head of Asset Management at Aviso Wealth. “The rapid growth of RI assets affirms what we’ve believed for years – that responsible investing has a place in the investment mainstream and that Canadians are, in fact, responsible investors at their core.”
View the full report here: https://www.riacanada.ca/research/2018-canadian-ri-trends-report/
About the Canadian RI Trends Report
The Responsible Investment Association (RIA) publishes the Canadian Responsible Investment
Report on a biennial basis to understand and assess the characteristics of responsible
investment in Canada. Researchers collected survey data from 106 investment managers and asset owners. This data was supplemented by publicly-available sources such as annual reports. The researchers avoided double counting by subtracting approximately $673 billion in RI assets which overlapped between external managers and funds of funds.
About the Responsible Investment Association
The Responsible Investment Association (RIA) is Canada’s industry association dedicated to responsible investment (RI). Members include mutual fund companies, financial institutions, asset management firms, advisors, consultants, investment research firms, asset owners, individual investors and others interested in RI. Our members believe that the incorporation of environmental, social and governance (ESG) factors into the selection and management of investments can provide superior risk adjusted returns and positive societal impact.
Media Enquiries
Nick Buccheri,
Manager, Communications & Digital Media
Responsible Investment Association
+1 416-461-6042
Kira Smylie
Media Manager
Aviso Wealth
T 416.933.6263
M 416.209.2761
October 15, 2018 – Individual investors around the world are increasingly seeking out responsible investments, wanting their money to be aligned with their values and putting their savings to work building a healthy future, say responsible investment organizations spanning the globe.
October sees a month of global activity to highlight and celebrate the mounting demand for responsible and ethical investment – from individual investors through to large institutions – that is shifting financial markets to align with the great sustainability challenges of our time.
A significant shift is underway in financial markets globally, with more than 25% of all professionally managed investments being committed to responsible investing, according to research conducted by the Global Sustainable Investment Alliance.i
The demand from individual investors is becoming an ever-greater driver of this growth, with more and more clients asking their banks, pension funds, investment managers and financial advisers to align their finances with their own personal values.
In recognition of this, three major markets will be celebrating responsible investment weeks this month to raise awareness and celebrate this growing demand – Good Money Week in the UK, RI Week in Canada, and National Ethical Investment Week in Australia, among a number of other country level activities in Italy, France and Spain.
These weeks will be highlighting how investors play a critical role in shifting the finance sector to drive capital to build a better world whilst delivering strong investment returns.
In Canada, the Responsible Investment Association of Canada will hold Responsible Investment Week from October 22nd to 26th. A 2017 survey revealed that 77% of individual investors in Canada are interested in responsible investing while a staggering 73% know little or nothing about it. In Canada, this is increasingly known as the ‘RI awareness gap.’ “Raising awareness among the investing public is essential to the development and full adoption of responsible investing,” said Dustyn Lanz, CEO of RIA Canada. “We need to close the gap between investor interest and knowledge of RI, and these international campaigns will play an important role in doing that.”
In the UK, UKSIF has just held Good Money Week. Simon Howard, CEO of UKSIF said ”For the first time ever our Good Money Week polling shows that the British are as concerned that their money makes a positive difference, as they are that it makes a return. In every previous year the most popular answer has been ‘It’s all about the money’. Things are changing in the UK and around the world.”
Australia is also seeing a rapid increase in the uptake of responsible investment, and will be celebrating National Ethical Investment Week from October 15-19 with events held across various locations. Recent polling of fund managers found by Responsible Investment Association Australasia found that demand had risen to be one of the top drivers of the growth in responsible investing. 2017 research shows 92% of Australians expect their pensions and other investments to be invested responsibly and ethically.
“The vast majority of Australians want their pensions invested responsibly, such as through investing in companies that build clean energy infrastructure or avoiding investments that can harm communities such as weapons manufacturing, and RIAA is happy to support National Ethical Investment Week” said Simon O’Connor, CEO of RIAA. “As investors, our job is to deliver better outcomes for our clients, which must include consideration of their preferences in ESG and ethical issues. This is an important wake up call for the finance sector, but also presents a great opportunity for investors to achieve deeper engagement with clients.”
Speaking on behalf of the GSIA, Simon Howard of UKSIF said: ”GSIA members know demand is growing worldwide and it is proving to be a significant driver of the uptake of responsible investment. We are delighted to flag global activity by members in this period and we hope that there can be more alignment in the future: the challenges we face are global, let’s meet them together.”
AUSTRALIA
National Ethical Investment Week, 15-19 October
www.ethicaladviserscoop.org/ethical-investment-week.html
CANADA
Responsible Investment (RI) Week, 22-26 October
www.riacanada.ca/riweek18/
UK
Good Money Week
29th September- 5th October
http://goodmoneyweek.com/
CONTACTS
Simon O’Connor, RIAA
Via Carly Hammond
carlyh@responsibleinvestment.org
Simon Howard, UKSIF and GSIA
0207 749 9950
Simon.howard@uksif.org
Nick Buccheri, RIA Canada
+1(416) 461-6042 x5
iThe UK Sustainable Investment and Finance Association, Responsible Investment association of Canada, and the Responsible Investment Association of Australasia are all members of the Global Sustainable Investment Alliance.
The GSIA is a collaboration of membership-based sustainable investment organizations around the world. The GSIA’s mission is to deepen the impact and visibility of sustainable investment organizations at the global level. Our vision is a world where sustainable investment is integrated into financial systems and the investment chain and where all regions of the world have coverage by vigorous membership based institutions that represent and advance the sustainable investment community.
Our research on the size of the global sustainable investment market is at http://www.gsi-alliance.org/members-resources/trends-report-2016/
Despite the outdated yet persistent myth to the contrary, incorporating environmental, social, and governance (ESG) factors into investment decisions is a winning formula for investors.
Analyses from leading asset managers, research firms and universities have shown that responsible investments usually meet or exceed the performance of traditional investments at the index, fund and company levels. RIA CEO Dustyn Lanz reviews the recent performance record of responsible investments and what’s behind the numbers.