Category: News

In 2023, 65% of surveyed Canadian investors expressed interest in responsible investment (RI). However, only a small percentage of those surveyed reported that their advisors are initiating discussions around RI. Why are so many financial advisors sitting on the sidelines of responsible investment?

With the support of AGF Investments, Mackenzie Investments, and TD Asset Management, the RIA launched the 2024 Advisor RI Insights Study to find out.

Key Findings

• Reasons not to offer RI currently centre around a lack of knowledge and resources, or a perceived administration burden. Product availability is not a barrier.
• Education and knowledge of RI are tightly linked to the overall use of RI. The more confident an advisor is about RI, the more extensively they will use it in their practice.
• Advisors rely on investment companies – especially wholesalers – for information, and are likely to turn to them with questions when introducing or increasing their RI usage.
• Investor demand is driving advisor adoption.
• Nearly 90% of RI users anticipate the positive growth of RI over the coming years, and non-users are open to using RI.

Influences on initial decision to offer RI

Of current RI users, nearly four in ten say their clients are the reason they started offering RI.

Reasons advisors offer RI in practice

 

Beyond client-driven requests, advisors are recognizing the benefits of incorporating RI into their practice.

The responsible investment industry continues to strengthen and evolve, with:

• Significant investor interest in RI solutions.
• Supportive regulatory guidance.
• Increased RI product availability.
  High expectations RI will continue to grow and become mainstream.

There has never been a better time to start the conversation.

Client and Advisor Fulfillment Gaps

The RIA is ideally positioned to support financial advisors through our commitment to delivering best-in-class RI education, programming, and collaborative opportunities.

For more information on the 2024 RIA Advisor RI Insights Study, or to learn more about RIA resources for your practice, reach out to membership@riacanada.ca.

The RIA is launching a new Retail Strategy Working Group in fall 2024. In support of the RIA’s mission to drive the growth and development of responsible investment in Canada, the Working Group’s mandate will be to inform and work with RIA management on the advancement and execution of its responsible investment retail strategy.

Specifically, the Working Group will:

• Provide ongoing advice and support to management on the RIA’s responsible investment retail strategy.
• Help management set priorities and identify key content and programming needs related to retail investment.
• Assist management in staying abreast of relevant developments in the regulatory and credentialing landscapes.
• Identify opportunities and/or barriers for growth of adoption of RI in retail investing.

The RIA is seeking up to seven individuals to form the inaugural Working Group cohort.

What’s in it for you?

Participation in the RIA’s Retail Investment Working Group is a unique opportunity to:

• Contribute to the growth, development and entrenchment of responsible investment in Canada.
• Help shape, inform and develop the responsible investment retail landscape in Canada.
• Gain access to important industry insights and studies.
• Play a direct role in ensuring needs are met in this important and growing sector.

Expectations of Working Group members:

• Participation in quarterly Working Group meetings.
• Accessible to RIA management for occasional input on priority initiatives (outside of quarterly meetings).
• One-year commitment (with the possibility of renewal).

The Working Group is not:

• An oversight or governance body.
• A platform to evaluate or promote products or services.

Working Group Composition:

• Advisors (three – with different credentials)
• Fund manufacturer (one)
• Fund Wholesaler (one)
• Data company (one)
• RI/ESG subject matter expert (one)

Note: Working Group participation is in a volunteer capacity and is contingent on being an RIA member in good standing.

Are you the ideal candidate to contribute to the RIA’s Responsible Investment Retail Strategy?

Kindly complete the application form by close of business on September 20, 2024.

The RIA thanks all applicants. However, due to the limited number of positions, only short-listed candidates will be contacted.

Congratulations to Canada’s newest recipients of the RIA’s financial credentials in recognition of expertise in responsible investing. View a full list of RIA credential holders here.

Learn more about the RIA’s training and credentials here.

Dominic Bernard (RIAC)
Marc-André Boudreau (RIS), Desjardins
Martine Carignan (RIS), Caisse du Nord de Laval (Desjardins)
Yifan Dong (RIS), Desjardins
Jonathan Elie (RIS), Services d’investissements férique
Caroline Gautreau Hadley (RIS), UNI Cooperation financière
Allan Grace (RIS), Desjardins Financial Security Investments Inc.
Maxime Haché (RIS), UNI Cooperation financière
Guillaume Ross (RIAC)
Alexis Joel St Amand (RIS), UNI Financial Cooperation
Derick Symonds (RIS), Meridian Credit Union
Minh Tung Trinh (RIS), Caisse Desjardins du nord de Laval
Dawn Walton (RIS), Meridian Credit Union

Highlights from Q2 2024

• Flows into Canadian sustainable funds saw an increase of 20.8% compared to the previous quarter, reaching an all-time high in this quarter of C$60.9 billion total assets.
• This quarter, seven new RI products were launched, marginally increasing from the six funds launched in the first quarter of 2024.
• All the seven funds were awarded various CIFSC identifiers, but none received ESG Integration and Evaluation or Impact Investing.

Sustainable Fund Assets

Source: Morningstar Direct, Manager Research. Data as of June 30, 2024. Excludes funds of funds.

RI Fund Performance

Based on data provided by Morningstar, over 50% of sustainable funds ranked in the top half of their respective categories:

• 38% of sustainable allocation funds ranked in their peers’ top quartile.
• 30% of equity funds ranked in their categories’ top quartile.

US equity funds have reportedly registered mixed results, with broad sustainable US equity funds ranking in the top half of the peer group, and sustainable US dividend and income equity funds ranked in the bottom half1.

1 Morningstar, Canada Sustainable Funds Landscape Report Q2 2024

Canadian Equity

Global Equity

US Equity

RI Fund Flows:

• Both active and passive sustainable funds saw outflows in the second-quarter 2024. Passive funds had more outflows than active; CAD 1.6 billion versus CAD 442 million.
• Active funds have registered outflows for only the second time in five years.
• Almost half of sustainable funds saw net outflows in the second quarter of this year.

Sustainable Fund Flows

Source: Morningstar Direct, Manager Research. Data as of June 30, 2024. Excludes funds of funds.

 

Note 1: For the purpose of this report, RI funds include those that are marketed as responsible investments with RI strategies/policies disclosed in regulatory documents. Average asset class return includes RI and non-RI funds. Returns for periods greater than one year are annualized. Excludes fund-of-funds.

Note 2: More information on the Canadian Sustainable Funds can be found in Morningstar Canada Sustainable Funds Landscape Report Q2 2024, uploaded on the RIA website.

Download Q2 2024 Highlights PDF.

RIA Members can download the full report by logging in to their account and accessing Member Resources.

For more information about the Canada Sustainable Funds Landscape from Morningstar, click here.

 

Data provided by

©2023 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results

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Disclosure
The information contained in this report is for educational and general information purposes only. The information contained herein does not constitute advice nor does it constitute an offering of securities or any advertisement for the offering of securities. You should not act or rely on the information without seeking professional advice. While we believe the information to be reliable [and endeavour to keep the information up to date and correct], we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, timeliness, suitability or availability with respect to the report or the information, products, services or related graphics contained in the report for any purpose. The RIA does not endorse, recommend or guarantee any investment products listed in the report.

Highlights from Q1 2024

• Assets in Canadian sustainable funds hit an all-time high in 2024’s first quarter, registering C$4.6 billion in net new assets compared to the previous quarter, and standing at C$50.5 billion total assets.
• This quarter, six new RI products were launched, increasing from the four funds launched in the last quarter of 2023.
• At the end of 2024’s first quarter, CIFSC identified 355 mutual funds and exchange-traded funds that follow at least one of its six responsible-investment approaches.

Sustainable Fund Assets

Source: Morningstar Direct, Manager Research. Data as of March 31, 2024. Excludes funds of funds.

RI Fund Performance

Based on data provided by Morningstar, sustainable funds show mixed results compared to their conventional Morningstar peers, with 58% of sustainable funds landing in the bottom half of their respective peer groups:

• Allocation funds posted the strongest relative results, with 26% of sustainable funds ranking in their peer group’s top quartile.
• Canadian sustainable balanced funds struggled, with 67% landing in the bottom quartile.

Canadian Equity

Global Equity

US Equity

RI fund flows:

• Both active and passive sustainable funds saw inflows in the first-quarter 2024. Passive funds added more than active: CAD 116.3 million versus CAD 76.3 million.
• Europe, being the world’s largest market for sustainable funds, attracted USD 10.9 billion in the first quarter, more than double the subscriptions of the previous quarter. Contrarily, the United States experienced its worst-ever quarter, recording outflows of USD 8.8 billion.1

Sustainable Fund Flows

Source: Morningstar Direct, Manager Research. Data as of March 31, 2024. Excludes funds of funds.

-Canada Sustainable Funds Landscape 2023 in Review

1 Global Sustainable Fund Flows: Q1 2024 in Review by Morningstar

Note 1: For the purpose of this report, RI funds include those that are marketed as responsible investments with RI strategies/policies disclosed in regulatory documents. Average asset class return includes RI and non-RI funds. Returns for periods greater than one year are annualized. Excludes fund-of-funds.

Note 2: More information on the Canadian Sustainable Funds can be found in Morningstar Canada Sustainable Funds Landscape Report Q1 2024, uploaded on the RIA website.

Download Q1 2024 Highlights PDF.

RIA Members can download the full report by logging in to their account and accessing Member Resources.

For more information about the Canada Sustainable Funds Landscape from Morningstar, click here.

 

Data provided by

©2023 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results

---

Disclosure
The information contained in this report is for educational and general information purposes only. The information contained herein does not constitute advice nor does it constitute an offering of securities or any advertisement for the offering of securities. You should not act or rely on the information without seeking professional advice. While we believe the information to be reliable [and endeavour to keep the information up to date and correct], we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, timeliness, suitability or availability with respect to the report or the information, products, services or related graphics contained in the report for any purpose. The RIA does not endorse, recommend or guarantee any investment products listed in the report.

Congratulations to Canada’s newest recipients of the RIA’s financial credentials in recognition of expertise in responsible investing. View a full list of RIA credential holders here.

Learn more about the RIA’s training and credentials here.

Suanne Anderson (RIS), Coast Capital Wealth Management
Catherine Bédard (RIS), Desjardins
Jean-Francois Binet Labrecque (RIS), Solutions de placement Desjardins
Isabelle Boudreau (RIS), UNI Coopération Financière
Dianne Bruce (RIAC)
Katherine Chou Hong Yau (RIS), Desjardins
Madison Crapley (RIS), Synergy Credit Union
Philippe Dessureault (RIAC)
Michael Duwyn (RIS), Libro Credit Union
Brandon Guay (RIS), Meridian Credit Union
Pascale Imbeau (RIAC)
Samantha Jones (RIS), Carruthers Walker Financial
Mohamed Konaté (RIS), UNI Coopération financière – Aviso patrimoine
Zheyu Li (RIS), Desjardins
Anthony Frederick Liou (RIS), Desjardins
Steve Madore (RIAC)
Elyass Meliani (RIS), Desjardins
Omar Moussa M Djermakoye (RIS), Banque Laurentienne du Canada
Alejandra Muller Garcia (RIS), Caisse d’économie solidaire Desjardins Job
Heili Orav (RIS), Northern Birch Credit Union and Aviso Wealth
Mostafa Oubellouch (RIS), Desjardins
Ingrid Parrott (RIS), Libro Credit Union
Akash Patel (RIS), Libro Credit Union
Parin Patel (RIS), Libro Credit Union
Francis Poissant (RIAC)
Morales Rozier (RIS), Desjardins
Rushikumar Shah (RIS), Servus Credit Uniin
Alexander Toth (RIAC)
Hayden Westwood (RIS), Libro Credit Union
Michael Yashar (RIS), Libro Credit Union

Congratulations to Canada’s newest recipients of the RIA’s financial credentials in recognition of expertise in responsible investing. View a full list of RIA credential holders here.

Learn more about the RIA’s training and credentials here.

Abraham L. Animalla (RIS), Access Credit Union
Heather Barren (RIS), IG Wealth Management
Nicholas Biljan (RIS), PenFinancial
Amélie Cassista (RIS), Desjardins
Yannick Céleste (RIS), Caisse Desjardins De Mercier-Est–Anjou
Marc-Steven Côté Fortin (RIS), IG Gestion de patrimoine
Mélanie Courtet (RIS), Desjardins
Eric Desroches (RIS), Desjardins
Mouhamed Dia (RIS), Mouvement Desjardins
Julie Duclos (RIS), Desjardins
Sarah Dulac (RIS), Caisse Desjardins de Limoilou
François Gaudette (RIS), Caisse du Nord de Laval
Fazia Ghaoui (RIS), CAISSE DESJARDINS DU NORD DE LAVAL
Coralie Gil (RIS), Desjardins
Katie Gilbert (RIS), Libro Credit Union
Valerie Hazelton (RIS), Coast Capital Savings
Justin Philip Hebb (RIS), CU Financial Management
Gaëlle Hourman (RIS), Desjardins
Ilija Knez (RIS), Aviso Wealth
Shrey PrameshKumar Kothari (RIS), Vision Credit Union
Annie Kuan (RIS), Vancity
Sébastien Laverdière (RIS), Desjardins
Amelia Lembe Neto (RIS), Mouvement Desjardins
Madison Lockwood (RIS), Prairie Centre Credit Union
Charles Loewen (RIS), Aviso Financial Inc.
Jordan Luce (RIS), Desjardins
Steve Madore (RIAC)
Eva Maksymiw (RIS), NEI investments
Norman Mammon (RIS), Encasa
Alexandre Ménard (RIS), Caisse Desjardins de Neigette et Mitis Ouest
Rhonda Michalowicz (RIS), Meridian Credit Union
Rejoice Ordu-Agara (RIS), Affinity Wealth Management
Frédéric Phan (RIS), Desjardins
Maud Pichette (RIS), Desjardins
Francis Poissant (RIAC)
Jason Proulx (RIS), Desjardins
Chrisner Ramos-Singh (RIS), Cambrian Credit Union/Aviso Wealth
Stéphanie Rathel (RIS), Desjardins
Marie Laetitia Ravelet (RIS), Desjardins
Taunya Sawatsky (RIS), Coast Capital Wealth Management
Isabel Stroud (RIS), Diamond North Credit Union
Michael Suderman (RIPC)
Allina Sykes (RIS), Meridian Credit Union
Sarah Symons (RIS), Gulf & Fraser
Laurence Thibault (RIS), Desjardins
Alexander Toth (RIAC)
Christian Valdez (RIS), Meridian Credit Union
Emilie Veilleux (RIS), à mon compte
Jason Vokey (RIS), PenFinancial Credit Union

Congratulations to Canada’s newest recipients of the RIA’s financial credentials in recognition of expertise in responsible investing. View a full list of RIA credential holders here.

Learn more about the RIA’s training and credentials here.

Dianne Bruce (RIAC)
Benjamin Eby (RIS), Enderby & District Financial a division of First West Credit Union
David Edery (RIS), Desjardins
Julie Gauche (RIS), Caisse Desjardins du Nord de Laval
Jordan Isaac (RIS), Aviso
Youssef Kachkache (RIS), Desjardins
Josuha Raymond-Gagnon (RIS), Desjardins
Helen Tsougrianis (RIS), Coast Capital Wealth Management
Yating Zhang (RIS), Vancity

The RIA has conducted the most comprehensive national report on Canadian investment advisor perceptions on responsible investment. This unique resource is available to chartered subscribers with preferred rates for RIA members. Together with the RIA’s annual Canadian RI Trends Report and Investor Opinion Survey, these studies provide 360-degree insights on the state, direction and opportunities presented by RI.

To learn more about how the Advisor RI Insights Study can benefit your organization and how to become a chartered subscriber, please contact membership@riacanada.ca.

Congratulations to Canada’s newest recipients of the RIA’s financial credentials in recognition of expertise in responsible investing. View a full list of RIA credential holders here.

Learn more about the RIA’s training and credentials here.

Mahiedine Ait Amer Meziane (RIS), Caisse Desjardins de Mercier est-Anjou
Jeannie Albert (RIS), Uni Coopération Financière
Rym Attia (RIS), Desjardins
Jon Beaulac (RIS), Nelson & District MoneyWorks
Jack Arthur Bedard (RIS), PenFinancial Credit Union
Antoanela Carmen Bostinaru (RIS), DESJARDINS – CAISSE MERCIER EST ANJOU
Juanie Boulet (RIS), Desjardins
Maxime Brodeur-Plante (RIS), Desjardins
Mladen Bukvic (RIS), ASSINIBOINE CREDIT UNION
Guillaume Cossette (RIS), Desjardins
Vladimir Desrosiers (RIS), Desjardins
Frank-Olivier Doré (RIS), Gestion Stratégique | Investia services financiers
Julian Duplan (RIPC)
Charles Fauteux (RIPC)
Sarabeth Fontelar-Castillo (RIS), Cambrian Credit Union
Sindy Garceau (RIS), Desjardins
Shayla Ghirra (RIS), Fidelity Canada
Simon-Pier Goulet (RIS), Desjardins
Diana Halvadzija (RIS), Cambrian Credit Union | Credential Asset Management Inc.
Richard Hussain (RIS), Meridian Credit Union / Credential Asset Management Inc.
Peter Kenny (RIAC)
Craig Kerridge (RIS), Coast Capital Wealth Management
Pauline Kupiak (RIS), Cambrian Credit Union
Mario Lachance (RIS), Desjardins
Quentin Lavaud (RIS), Desjardins
Adam Lecker (RIS), Credential Asset Management
Mélanie Leclerc (RIS), Desjardins
Yin Liang (RIS), Aviso Wealth
Christian Martineau (RIS), Desjardins
Kimberly Métivier (RIS), Desjardins
Christian Quirion (RIS), Desjardins
Guy St-Onge (RIS), Desjardins
Geoffrey St.Onge (RIS), Alterna / Credential
Nancie Taylor (RIS), Aviso
Robert Wong-Man-Kan (RIS), Desjardins