Category: News

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

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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.

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

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.

Nicolas Audet (RIS), Desjardins
Ben Baker (RIS), Meridian Credit Union
Brody Bossuyt (RIS), Cambrian Credit Union
Jean-Sébastien Boucher (RIS), Desjardins
Annie Campagna (RIS), Caisse Desjardins du Nord de Laval
Abdoul Aziz NDAW (RIS), Desjardins caisse de Mercier est anjou
Nancie Taylor (RIS), Aviso Wealth
Susyn Wagner (RIAC)

Majority of investors surveyed believe their portfolio companies must mitigate risks associated with their use of AI, while also investing in its continued development.

TORONTO – February 29, 2024 – The vast majority of Canadian retail investors are concerned about AI and want to see risk mitigation embedded in their portfolios, according to a new survey from the Responsible Investment Association (RIA).

The 2023 RIA Investor Opinion Survey, based on an Ipsos poll of 1,001 individual investors in Canada, found that 79% feel it is important for their portfolio companies to identify and mitigate possible risks associated with AI, and 74% want companies to provide information on how they are using and investing in it.

Investors are slightly less concerned about greenwashing than they were in 2022, with 68% very or somewhat concerned compared to the previously reported 75%. A strong majority of 69% of respondents agree that RI can have a real impact on the economy and contribute to positive change for society.

The survey, sponsored by AGF Investments and Desjardins Investments, also shows that two thirds of respondents want their financial services provider to inform them about responsible investments (RI) that are aligned with their values, while less than a third report to have been asked if they were interested. RI ownership has remained consistent since 2020, with a third of respondents indicating current ownership.

“Retail investors are interested in responsible investment and want their portfolios to reflect their concerns about social and environmental issues,” said Patricia Fletcher, CEO of the RIA. “However, they lack knowledge on the subject, presenting a significant opportunity for financial advisors to equip themselves to meet these demands and inform their clients on investment options that align with their preferences and personal values.”

AGF Investments

“We’re proud to once again sponsor a survey that inspires meaningful dialogue about RI, while covering timely topics like greenwashing and the perceived risks of AI,” said Judy Goldring, President and Head of Global Distribution, AGF Management Ltd. “This year’s survey uncovers some notable findings and we’re committed to ensuring the advisors we work with have the resources they need to engage in informed discussions with their clients.”

Desjardins Investments

“The results of the questions asked for the first time on Artificial Intelligence speak volumes –
investors want to be informed of the issues surrounding the use of AI and perceive AI more as a
risk than an opportunity,” says Sébastien Vallée – President and CEO, Desjardins Investments.
“This prompts us to consider this crucial dimension in our analyses.”

Additional Highlights:

• Two thirds of respondents (65%) are interested in RI, with younger respondents generally expressing greater interest than older respondents, and female respondents more interested than their male counterparts.
• Unchanged from last year, 70% of respondents know little or nothing about RI, including 21% that have never heard of it.
• Considering the impact of world events, 36% of respondents say they are more likely to choose RI than one year ago, while 44% say they are neither more nor less likely. RI ownership has remained consistent since 2020.
• 67% of respondents would like their financial services provider to inform them about RI options, however, only 32% said their provider had ever broached the subject.
• Greenwashing concerns continue to be a deterrent to RI. 68% of respondents are very or somewhat concerned about greenwashing, however, this is lower than the 75% expressing concern in 2022.
• 46% of respondents view AI as much or somewhat more of a risk than an opportunity. 8 in 10 say it is important for companies in their portfolio to identify and mitigate potential risks associated with AI, while half say it is as important for them to invest in the development of AI and make use of it in their products or services.

View the full report here.

About the RIA Investor Opinion Survey

The Responsible Investment Association publishes the RIA Investor Opinion Survey annually to track individual investors’ perspectives on responsible investment and various environmental, social, and governance (ESG) issues. The 2023 Survey is based on data collected by Ipsos from 1,001 Canadian individual investors between November 24th and November 28th, 2023. Investors are defined as individuals who currently own investments such as mutual funds, exchange-traded funds, stocks, bonds, or other securities. The poll has a Bayesian credibility interval of ±3.5%.

About the Responsible Investment Association (RIA)

The RIA is Canada’s industry association for responsible investment. The RIA’s membership includes asset managers, asset owners, advisors, and service providers who support its mandate of promoting responsible investment in Canada’s retail and institutional markets. RIA institutional members collectively manage more than $40 trillion in assets. Learn more at www.riacanada.ca.

Media Contact

Ady Jonsohn
Vice President, Content Development and Delivery
Responsible Investment Association
+1 416-461-6042

February 27th, 2024 – Toronto – The Responsible Investment Association (RIA) is pleased to announce that Sun Life has become a Sustaining Member of the RIA.

“We are excited to welcome Sun Life as a Sustaining Member of the Responsible Investment Association,” said Patricia Fletcher, Chief Executive Officer of the RIA. “Our partnership continues to strengthen, and we look forward to collaborating more closely towards our shared goal of a more sustainable future.”

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 Sustaining Members play a critical role in advancing responsible investment in Canada, providing leadership and a stable funding base to support the operations of the RIA.

“At Sun Life, being sustainability-driven is central to our Purpose of helping Clients achieve lifetime financial security and live healthier lives,” said Adelina Romanelli, Director, Responsible Investing, Sun Life Global Investments. “As a global financial services company, we’re striving to create positive impact for our Clients, communities, and our planet. Sun Life is committed to advancing responsible investing and contributing to the transition to a low-carbon and more inclusive economy. We’re pleased to partner with the RIA as a Sustaining Member to drive progress and build a brighter future, together.”

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.

About Sun Life
Sun Life is a leading international financial services organization providing asset management, wealth, insurance and health solutions to individual and institutional Clients. Sun Life has operations in a number of markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of December 31, 2023, Sun Life had total assets under management of $1.40 trillion. For more information, please visit www.sunlife.com.

Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.

SLGI Asset Management Inc. is the investment manager of the Sun Life family of mutual funds. Sun Life Global Investments is a trade name of SLGI Asset Management Inc., Sun Life Assurance Company of Canada and Sun Life Financial Trust Inc. all of which are members of the Sun Life group of companies.

Media Enquiries
Damiano Passarelli, Senior Marketing and Communications Specialist, RIA, (416) 461-6042 x8

Highlights from Q3 2023

• Canadian RI funds stood at $45.8 billion at the end of September, representing a decline of 4.3% from all-time highs noted in the second quarter, but still a 13.3% increase versus Q3 2022.
• This quarter, 13 new RI products were launched, representing the most funds launched in a single quarter since Q1 2022.
• At the end of 2023’s third quarter, CIFSC identified 272 mutual funds and exchange- traded funds that follow at least one of its six RI strategies.

RI Fund Performance

• Based on data provided by Morningstar, 44.3% of RI funds ranked in the bottom quartile of their respective peer groups during Q3.
• Despite weakness in the third quarter, RI funds maintained relatively good results over the last year ended September 2023, with 47% landing in the top half of their peer groups.

RI Fund Flows:

• According to Morningstar, investors pulled $22.4 million out of sustainable funds during Q3. This was the first time there were net outflows from sustainable funds since Q2 2020, but unsurprising given the larger trend of overall fund redemptions during a challenging quarter of global market performance and uncertainty surrounding inflation expectations and central bank rates.
• Canadian RI funds still saw over $1.6 billion of inflows from January to the end of September.
• One organization’s RI funds accounted for 35.7% of the inflows into active sustainable funds in this quarter, collecting $601.2 million during the period.

Canadian Equity

Global Equity

US Equity

Note: 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.

Download Q3 2023 Highlights PDF.

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

 

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.