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The Responsible Investment Association (RIA) is pleased to announce that BMO Global Asset Management, Mackenzie Investments, and Scotia Global Asset Management have become Sustaining Members of the Responsible Investment Association. Sustaining Membership is the RIA’s top level of membership, signalling a strong commitment to, and a leading position within, the association.

Sustaining Members participate on the RIA Leadership Council, which plays an advisory role to management on strategic RIA projects and programs. The three new Sustaining Members join the following institutions in the category: Addenda Capital, AGF Management Limited, CIBC, Desjardins Group, iA Wealth, NEI Investments, RBC Global Asset Management, Refinitiv, and TD Bank Group.

“We are thrilled to welcome BMO GAM, Mackenzie, and Scotia GAM as Sustaining Members of the RIA,” said Dustyn Lanz, the RIA’s CEO. He added, “The market for responsible investment is growing and evolving at an unprecedented pace, and we look forward to working with our new Sustaining Members to advance the RIA’s vision to align capital with sustainable and inclusive development.” 

The RIA is Canada’s industry association dedicated to the growth and development of responsible investment, and its vision is to align capital with sustainable and inclusive development as codified in the Paris Agreement and the UN Sustainable Development Goals. The RIA’s membership includes asset managers, asset owners, advisors, and service providers who support these objectives. The RIA has grown rapidly in recent years alongside growing interest in investments that incorporate environmental, social, and governance (ESG) criteria. Its institutional membership represents more than 140 organizations managing more than C$29 trillion in assets.

“At BMO Global Asset Management, we strive to lead the advancement of responsible investing values through active engagement with companies to improve ESG practices and our own sustainable product offerings for investors,” said Sadiq Adatia, Chief Investment Officer, BMO Asset Management. “We are proud to build on this commitment through our new top-level RIA membership. Responsible investing provides the opportunity to help our clients meet their investing goals, while also contributing to a sustainable future for all – a key pillar of BMO’s Purpose to Boldly Grow the Good in business and life.”

“We’re honoured to be joining the Responsible Investment Association and are looking forward to working within our industry to provide Canadians with even more access to sustainable investments and establish our country as a global leader in the space,” said Fate Saghir, Head, Sustainable Investing, Mackenzie Investments.

“We are extremely pleased to become a Sustaining Member of the RIA to further support the important work the Association is doing and to play a greater a role in advancing the dialogue on sustainable and inclusive investment in Canada,” said Neal Kerr, Head, Scotia Global Asset Management (Canada).

 

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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.

Lisane Alain (RIS), Desjardins
Keith Barker (RIS), Assante Wealth Management
Simon Becker (RIS), Access Credit Union
Luc Borgia (RIS), Gestion Vigie Inc.
Philippe Bourque (RIS), Prospera Wealth Planning
Johnathon Burroughs (RIS), Libro Credit Union
Adam Cawker (RIS), Westminster Savings
Eric Dallaire (RIS), SFL Placements
Sylvain De Champlain (RIS), De Champlain Groupe financier
Brian Demsey (RIS), ValleyFirst Credit Union
Marie-Philippe Dostie (RIS), Dostie Optimisation financière
Cassandra Dufour (RIS)
Meghan Fehr (RIS), North West Capital Partners
Demiah Fisk (RIS), Kawartha Credit Union
Jennifer Flentge (RIS), Aldergrove Financial Services Ltd
James Gisone (RIS)
Lynn Greenwood (RIS), Lismar Financial
Aaron J Hill (RIS), Edward Jones
Jesse Honkanen (RIS), First West Credit Union
Ryan Humphrey (RIS), Libro Credit Union
Brant Jones (RIS), Affinity Credit Union
Nora Khan (RIS), Desjardins
Jean-Philippe Labbé (RIS), Labbé Gestion Financière Inc.
Luc Labelle (RIS) iA Investia Sercices Financiers
Gariepy Ladouceur (RIS), MERICI – Croissance Capital Inc.
Gilbert Lam (RIS), CIBC
Cynthia Laventure (RIS), Mon Choix Financier
Dave Lessard (RIS), MICA
Julian Lopez (RIS), Groupe Cloutier Investissements
Tyler Lunde (RIS)
Anthony S. Marchao (RIS), Wealth Partners
Devon Matthew Duc (RIS), Meridian Credit Union
Patrick Morin (RIS), Groupe GBM
Krysta Nesbitt (RIS), Nesbitt Financial Strategies
Anne Pattengale (RIS), Aldergrove Credit Union
Julien Pelletier (RIS), SFL
Manon Perrier (RIS)
Alexis Roy (RIS), Groupe Financier Lacombe et Associés
Yohan Roy (RIS), iA Groupe Financier et Investia
Matthew Ryper (RIS), Networth Financial Corp.
Alain Saint-Pierre (RIS), La Solution Financière
Erica Sierra Melo Santo (RIAC)
Mélissa Smith Vachon (RIS), Labbé Gestion Financière Inc.
Corey Stover (RIS), Assante Wealth Management
Shannon Tatlock (RIS), Sunlife
Audrey Thorn-Grégoire (RIS), Monarque Conseil
Brian Trafford (RIS), CH Financial Ltd.
Danny Vaillancourt (RIS), Desjardins
Marcus Van Reeuwyk (RIS), Prospera Credit Union
Christine Vieceli (RIS), Your Credit Union
Robert Wilson (RIPC)
Eleanor Wong (RIS), Vancity
Elliott E. Worby (RIS), Investia Financial Services
Amanda Zintel (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.

Kimberly A Saunders (RIS), Keybase Financial
Nahanni Ackroyd (RIS)
Sylvie Aidans (RIS)
Karina Audet (RIS), Desjardins
Lorraine Beaumier (RIS), Picher Beaumier Service Financier inc.
Sarah Boissé (RIS), Les Assurances Claude Boissé Inc.
Andrée Bonin (RIS), Desjardins
Eric Bouchard (RIS)
Stephanie Brownlow (RIS), Island Savings
François Brui (RIS), Lessard Gilbert Brui Inc
Treese Bullough-Akkanen (RIS), Credential Financial Strategies
Bradley James Bumstead (RIS), Clear Path Financial Planners
Isabelle Chiasson (RIS), UNI Coopération financière
Sadaf Chowdhury (RIS), Desjardins Financial Security
Pier-Olivier Cloutier (RIS)
Kyle Conahan (RIS)
Diane Côté (RIS), ALIZÉ Services financiers
Heather Cowan (RIS), First West Credit Union
Diane de Grandpré (RIS), Diane de Grandpré
Dominique Denis-Bérubé (RIS), Guidance Conseils
Colleen Derrick (RIS), Swagar’s Insurance Services Ltd.
Christian Dulude (RIS)
Pascal Dupuis-Doucet (RIS), Doucet Services Financiers inc
Sima Etezadi (RIS), Desjardins
Marie-Antoine Faboumy (RIS), Desjardins
Joseph Faraco (RIPC)
Frédéric Fortier (RIS), Groupe Cloutier Investissements
Branka Gasic (RIS), Vancity
Samuel Gaudet (RIS), UNI Coopération financière
Karen Gibb (RIS)
Jordan Gillespie (RIS), Davlyn Financial Services Inc
Sébastien Guay (RIS), Solutions Financières Global
Deepika Gupta (RIS), Alterna Savings and Credit Union Ltd.
Brennan Head (RIS), PenFinancial Credit Union
Darryl Hill (RIS), Island Savings
Daniel Hunter (RIS), Représentant Autonome
Rolf Issler (RIS), Issler Group Management & Consulting Inc.
Nathalie Jourdain (RIS), Groupe Cloutier
Kory Knox (RIS), McAuley Financial Services
George Kover (RIS), Vancity
Maxime Lafrance-Brochu (RIS), PPTA Services Financiers
Sylvain Laguë (RIS)
Marie-Chantal Landry (RIS), Desjardins
Nicole Lavallee (RIS), Assiniboine Credit Union
Josée Lavoie (RIS), Desjardins
Taylor Lee (RIS), Fidelity Investments Canada
Michel Lefebvre (RIS), MultiCourtage Capital
Marie-France Lord (RIS), Desjardins
Corinne Lutz (RIS), Connect First Wealth
Donna M. Aniskowicz (RIS), FundEX Investments
Iliya Markovinovic (RIS), Alterna Savings and Credit Union Ltd.
Sovann Meas (RIS), Wealth Your Way
Lisa Mighri (RIS), Desjardins
Isaac Moran (RIS), Libro Credit Union
Zak Mouline (RIS), Desjardins
David Nader (RIS), Sterling Mutuals Inc.
Audrey-Sokunthevy Nut (RIAC), Fondaction
Shirley Jones Paley (RIAC), IG Wealth Management
Deanna Persaud (RIS), Sun Life Financial
Julia Raseta (RIS), Aviso Wealth
Kristi Reynolds (RIS), Island Savings Credit Union
Brian Rivers (RIS), Orr Insurance and Investments
Jonathan Roques (RIS), Desjardins
Marta Sadurska-Bystrzynska (RIS)
Matthew Semaschuk (RIS), Affinity Wealth Management
Lili Sgrignuoli (RIS), CIBC Asset Management
Jarid Shea (RIS), Marquee Insurance Group Inc. – The Cooperators
Jessica Sitnick (RIPC)
Diane Soroka (RIS), Soroka Financial Services Inc
Momar Sourang (RIS), Fidelity Investments
Manon St-Cyr (RIS), Groupe Cloutier investissements
Jess Thorgeirson (RIS), Desjardins
Annie Vigneault (RIS) Desjardins
Janet Wright (RIS), Vancity
Robin Wythe (RIS), Investia Financial Services

Highlights from Q2 2021

• The majority of all responsible investment (RI) funds in Canada outperformed the average return in their respective asset class category for the three months ending June 30, 2021.
• Following an exceptionally strong first quarter, estimated net asset flows to Canada-domiciled RI funds slowed somewhat in the second quarter, while remaining positive at $2.0 Billion.
• Five new RI funds were launched in the second quarter, of which three were active products and two were passive/indexed products. Year-to-date, 23 new funds have launched.

RI Fund Performance

According to data provided by Morningstar, over one-half (52%) of Canadian RI funds out- performed the average return in their respective asset class category during the quarter ending June 30, 2021. A similar proportion (55%) of Canadian RI funds outperformed their average asset class return over the 12 months ending June 30, 2021.

Canadian RI funds performed well over the medium- to long-term periods reviewed in this report, highlighting the value of incorporating environmental, social and governance (ESG) factors into investment decisions. As of June 30, 2021, 70% of the RI funds outperformed their average asset class return over the previous three years, and a comparable percentage (69%) outperformed their average asset class return over the previous five years. A majority of RI funds outperformed their average asset class return over the ten years ending June 30, 2021.

The following charts provide a quick overview of notable RI fund performance relative to their asset class peers, in the second quarter of 2021 and over longer time periods.

Canadian Equity

In the Canadian Equity fund class, 69% of the RI funds outperformed the average asset class return in the quarter, while 71% of RI funds outperformed the average asset class return over the 12-month period. The majority of the RI funds in this category outperformed their average asset class returns over their respective 3-year, 5-year and 10-year periods reviewed in this report.

Global Equity

In the Global Equity fund class, a majority of the RI funds outperformed the average asset class return in the second quarter of 2021. For the 12 months ending June 30, 2021, 45% of the RI funds in this category outperformed the average asset class return. Two-thirds of the RI funds in this category outperformed the average asset class return over the 3-year period, while 72% of the RI funds out- performed the average asset class return over the 5 years ending June 30, 2021.

US Equity

In the US Equity fund class, while 41% of the RI funds outperformed the average asset class return in the second quarter of 2021, a significant majority (88%) of the RI funds out- performed the average asset class return over the 12 months ending June 30, 2021. In both the 3-year and 5-year periods reviewed in this report, a majority of the RI funds outperformed the average return in the asset class over the respective periods.

Global Equity Balanced

In the Global Equity Balanced fund class, three-quarters of the RI funds outperformed the average asset class return in the quarter. As of June 30, 2021, a majority of the RI funds outperformed the average asset class return over the previous 12 months, while almost all of the RI funds outperformed the average asset class return over the previous three years. The vast majority of the RI funds outperformed the average asset class return over the five-year period reviewed in this report.

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. Only the oldest share class of RI funds were included in the analysis against category averages. Returns for periods greater than one year are annualized.

RI Fund Flows

Net asset flows for Canada-domiciled RI mutual funds and ETFs, estimated by Morningstar, continued to be strongly positive in the second quarter of 2021. Total estimated flows amounted to $2.0 Billion for Q2, bringing year-to-date flows to $7.5 Billion.

Canadian RI Mutual Fund and ETF Estimated Net Flows, Active & Passive

Source: Morningstar Direct. Data as of June 30, 2021. Excludes fund of funds.

RI Product Launches

According to Morningstar, a total of 5 RI funds launched in the second quarter of 2021, of which 3 were active funds while 2 were passive or indexed funds. A total of 23 RI funds have been launched in the first 6 months of 2021.

Canadian RI Mutual Fund and ETF Launches, Active/Passive

Source: Morningstar Direct. Data as of June 30, 2021.

Download Q2 2021 Highlights PDF.

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

Data provided by

©2021 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.

Responsible investment now one third of global capital markets

• Global responsible investment has reached US$35.3 trillion in five major markets, a 15% increase in the past two years (2018-2020)
• Responsible investment assets under management make up a total of 36% of total assets under management
• Responsible investment assets continue to grow in most regions, with Canada experiencing the largest increase in absolute terms over the past two years (48% growth), followed by the United States (42% growth), Japan (38% growth) and Australasia (25% growth)
• The US and Europe continue to represent more than 80% of global responsible investing assets
• Canada is now the market with the highest proportion of responsible investment assets at 62%, followed by Europe (42%), Australasia (38%), the United States (33%) and Japan (24%)

Today the Global Sustainable Investment Alliance (GSIA) released its biennial Global Sustainable Investment Review, revealing an industry that has grown to US$35.3 trillion as it transitions to one more focused on the short- and long- term impacts generated by investors.

In its fifth edition, the biennial Global Sustainable Investment Review 2020 maps the state of responsible investment of the major financial markets globally, combining regional data from the United States, Canada, Japan, Australasia and Europe. Responsible investment refers to the incorporation of environmental, social and governance (ESG) issues into the selection and management of investments.

This year’s report shows the continuing prevalence of responsible investment across the global investment industry, with assets under management reaching US$35.3 trillion, a growth of 15% in two years, and in total equating to 36% of all professionally managed assets across regions covered in this report.

“The Global Sustainable Investment Review 2020 demonstrates that sustainable investment is a major force shaping global capital markets, and, in turn is influencing companies and others seeking to raise capital in those global markets” said Simon O’Connor, Chair of the GSIA.

“This growth is being fuelled by rising consumer expectations, strong financial performance and the increasing materiality of social and environmental issues – from biodiversity to racial equity to climate change.”

It also reveals an industry that is in transition, with variations in the scale and growth of responsible investment in different regions, and rapid developments that are reshaping responsible investment to increasingly focus on moving the industry towards best standards of practice.

Many regions continue to see strong growth in responsible investment assets under management – with Canada experiencing the largest increase in absolute terms over the past two years (48% growth), followed by the United States (42% growth), and Japan (38% growth).

Other regions are slowing down their rate of growth or have seen a reported reversal – in particular Europe and Australasia. In both cases, this is largely due to changes in how sustainable investment is defined. In the case of the EU, there’s been a decline in absolute terms over this period (-13%), owing to revised definitions of sustainable investment that have become embedded into legislation as part of the European Sustainable Finance Action Plan. Meanwhile in Australasia, growth has been affected by tightening of industry standards.

The most common responsible investment strategy is ESG integration, followed by negative screening, corporate engagement and shareholder action, norms-based screening and sustainability-themed investment.

“Increasingly, there are expectations that sustainable investment is defined not just by the strategies involved, but by the short and long term social and environmental impacts that investors are generating through their sustainable investment approaches,” said O’Connor.

“This research confirms that responsible investment is not a fad or a trend; it’s a global paradigm shift,” said Dustyn Lanz, CEO of the Responsible Investment Association of Canada. “Leading investors are adopting a stewardship mindset, which is a critical starting point for capital to play a meaningful role in the transition to a sustainable economy.” He added, “A large portion of these assets analyze ESG factors from a risk management perspective. Looking ahead at the next phase of market development, I expect we’ll continue to see more investors focusing on sustainable and inclusive outcomes.”

This year’s report includes additional market insights from the United Kingdom, China, Latin America, Africa and other areas of Asia, all showing unique markets for responsible investment.

Download the full report here.

About the Global Sustainable Investment Review

The Global Sustainable Investment Review 2020 is the fifth edition of this biennial report mapping the state of sustainable investment in the major financial markets globally. This edition collates results from the US SIF: The Forum for Sustainable and Responsible Investment (US SIF), Japan Sustainable Investment Forum (JSIF), the Responsible Investment Association Canada (RIA Canada) and the Responsible Investment Association Australasia (RIAA) and in the case of Europe (including UK), from secondary industry data.

All 2020 assets are reported as of 31 December 2019, except for Japan which reports as of 31 March 2020. The report also includes additional market insights from the United Kingdom, China, and across Latin America, Africa and Asia, to form a global picture of the sustainable investment industry

About The Global Sustainable Investment Alliance

The Global Sustainable Investment Alliance (GSIA) is an international collaboration of membership-based sustainable investment organisations around the world. Our mission is to deepen the impact and visibility of sustainable investment organisations 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. For more information, visit gsi-alliance.org.

About the Responsible Investment Association

The Responsible Investment Association (RIA) is a nonprofit, membership-based organization dedicated to the advancement of responsible investment in Canada. The RIA’s membership is composed of over 400 institutional investors and investment professionals who practice and support responsible investing. To learn more about the RIA, please visit www.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.

Md Nasim Akhtar (RIS)
Susan Alain (RIS), Coast Capital Wealth Management Ltd.
Brendan Andrews (RIS), Kingsmere Financial
Michael Asadoorian (RIS), IPC SECURITIES CORPORATION
Dylan Asham (RIS), Westoba Financial Solutions Ltd.
Theresa Michelle Aucoin (RIS)
Ankit Bahl (RIS), Datel AS
Laurence Baril (RIS), Desjardins
Bryan Beaulieu (RIS), Financière Banque Nationale
Dzenan Bezdrob (RIS), Tycuda Group
Craig Brenzan (RIS), Investia Financial Services
Michael Bryans (RIS), Focus Financial Solutions Inc
William Buchholz (RIS)
Carla Bugera (RIS), Crossroads Credit Union
Keith Carruthers (RIS), Carruthers Financial
Julie Chaplain (RIS), Desjardins
Jennifer Clyne (RIS), Tycuda Group, a division of Leede Jones Gable Inc.
Miles Clyne (RIS), Tycuda Group
Simon Cousineau (RIS), Gestion financière Lanoie inc.
Kristina De Souza (RIS), Kleinburg Private Wealth Management
Annabelle Dumais (RIS), SFL Placements
Silviu Dumitru Burlibasa (RIS), Desjardins Financial Security
Nicole Dungey (RIS)
Dustin Dyck (RIS), Westoba Credit Union Ltd.
Patricia Echeverria Gonzalez (RIS), Vancity Credit Union
Sheron Marie Elder (RIS), Keybase Financial Group Inc.
Rocco Faiella (RIS), Faiella Financial
Ryan Faiella (RIS), Faiella Financial Group
Katia Felix Nogueira (RIS), Vancity
Mani Fenili (RIS)
Glen Furlong (RIS)
Glen Furlong (RIS), Strategic Wealth Planning Inc.
Adele Garibaldi (RIS), Investment Planning Counsel
Lorraine Graham (RIS)
Linda Gratton (RIS), Canada Life
Paul Hamon (RIS), Sapience Financial Management Inc.
Joe Harris (RIS), Aligned Capital Partners
Brendon Henry (RIS), Latitude Financial
Brendon Henry (RIS), Latitude Financial
Michael Higgins (RIAC), Raymond James
Andrew Robbie Hoyte (RIS), Valley First
Kartik Iyer (RIS), Vancity
Richard James Chmara (RIS), RBC Dominion Securities
Philip Janzen (RIS), FundEX Investments
Andrew Joseph Kinzie (RIS)
Jeanette Jow (RIS), Vancity
Jay Kamlia (RIS), Desjardins
Shahzada Kamran (RIPC), RBC Global Asset Management Inc.
Michelle Karst (RIS), Synergy Credit Union
Mary Keetch (RIS), Mary Keetch Financial Services Group
Amber Kuchinka (RIS), Affinity Wealth Management
Donald Kuepfer (RIS), FundEX Investments Inc.
Cécile L’Héritier (RIS), Investia Services Financiers Inc.
Jimmy Lauzon (RIS), GFM Groupe Financier
Christopher Lee Gorman (RIS)
Daniel Linardic (RIS), Alterna Savings and Credit Union Ltd.
Melanie Linkletter (RIS), Edward Jones
Blair Lissinna (RIS), Crossroads Credit Union
Peter Macintosh (RIS), MACINTOSH FINANCIAL GROUP
Danielle Marsala (RIS), Fidelity Investments Canada
Kerrie Masley-Smith (RIS)
Bryan Moss (RIS), Alterna Savings and Credit Union Ltd.
Michelle B. Myles (RIS), Manulife Securities Incorporated
David Navarro (RIS), Navarro Financial Group
Peter Nikolakakos (RIS), Alterna Savings and Credit Union Ltd.
Bobby Ning (RIS)
Eng-Khai Ong (RIS), Desjardins
Kelly Pather (RIS), Assante Financial Management Ltd.
Chrys Pelegris (RIS), BMO Nesbitt Burns
Anton Poverennov (RIS), Richardson Wealth Limited
Joel Rabouin (RIS), Investia Financial Services
Gagan Rai (RIS), Vancity Credit Union
Behnoosh Ramezani (RIPC)
Mike Razavi (RIS), Aldergrove Credit Union
Stuart Rieger (RIS), GFCU MoneyWorks
Kathryn Ritter (RIS), Sean Peach Financial Services Inc
Richard Rizi (RIS), Worldsource Wealth Management Inc.
Linda Ann Robinson (RIS), Desjardins
Josee-Anne Rochon (RIS), Sapience Financial Management & Investia Financial Services Inc.
Neil Rogers (RIS), Desjardins
Spencer Rolls (RIS), Assante Financial Management Ltd.
Erwin Sandejas (RIS), Affinity Wealth Management
Geoffrey Sgarbossa (RIS), Bossa Financial Inc / Excel Private Wealth
Celina Shoji (RIS)
Nammy Singh (RIS), YNCU
Dana Sleiman (RIS), Gestion FÉRIQUE
Andrew Smith (RIS), Andrew Smith Insurance Inc.
Kim A. Stratulat (RIS), Credential Financial Strategies Inc.
Jeff Swan (RIS), INVESTIA FINANCIAL SERVICES INC.
Kevin T.M. Jackson (RIS), Investia Financial Services Inc.
Muhammad Tayyab (RIS), Scotiabank Wealth Management
Daniel Tkatchuk (RIS), Affinity Credit Union
Anthony Tobias (RIS), Investia Financial Services Inc.
Sandra Trudeau (RIS), Desjardins
Patricia Turgeon (RIS), Island Savings
Paul W. Lermitte (RIS), Assante Financial Management Ltd.
Ronald W. Schreider (RIS), Qtrade Insurance Solutions Inc.
Jennifer Walker (RIS), Carruthers Financial
Andrea Walsh Gagnon (RIS), Investia
Daniel Whalen (RIS), CU Financial Management
Taylor Wilson (RIS), Libro
Faisal Yousuf (RIS), NEI Investments

On June 22, 2021, the RIA held its 2021 remote AGM and Special Meeting via GoToWebinar. The AGM included the election of three new board members:

• Carol Smith, Financial Advisor, Desjardins Financial Security Independent Network
• Nalini Feuilloley, Director, Responsible Investment, BMO Global Asset Management
• Marie-Justine Labelle, Responsible Investment Practice Lead, Desjardins

Several board members were also re-elected during the AGM:

• Johnny Fansher, Responsible Investment Specialist, iA Investia Financial Services
• Kelly Gauthier, Managing Director & Partner, Rally Assets
• Lisa Becker, COO & CCO, University of Toronto Asset Management Corporation
• Milla Craig, Founder and President, Millani Perspectives
• Daphne King, Vice President, National Accounts and Strategic Sales Initiatives, iA Clarington Investments
• Karrie Van Belle, Senior Vice-President, Head of Marketing and Communications, AGF Investments Inc.
• Melanie Adams, VP & Head, Corporate Governance & Responsible Investment, RBC Global Asset Management (GAM)
• Dominique Barker, Head, Sustainability Advisory, CIBC Asset Management
• Louis Spadacini, Vice President, National Institutional & Strategic Relationships, NEI Investments
• Nicole Vadori, Associate Vice President & Head of Environment, TD Bank Group
• Roger Beauchemin, President & CEO, Addenda Capital

The RIA would like to extend a warm thank you to outgoing board members Michael Silicz, Sébastien Vallée and Robert Jenkins for their contributions to the organization.

The Annual General & Special Meeting had a virtual turn-out of 42. In advance of the AGM the RIA offered a remote voting option for members via service provider ClickBallot. A total of 122 members voted in advance of the AGM. All AGM ballot items were passed.

Immediately following the AGM, the RIA Board met to formalize the appointments of the Chair, Vice-Chair, Treasurer and Secretary. The Executive Committee confirmed at the post-AGM is now:

• Chair – Roger Beauchemin, President & CEO, Addenda Capital
• Vice-Chair – Melanie Adams,VP & Head, Corporate Governance & Responsible Investment, RBC Global Asset Management
• Treasurer – Lisa Becker, COO & CCO, University of Toronto Asset Management Corporation
• Secretary – Karrie Van Belle, Senior Vice-President, Head of Marketing and Communications, AGF Investments inc.

Thank you to outgoing Chair, Ian Robertson, for his outstanding leadership and dedication to the organization. The full list of the Board of Directors can be found here .

The Responsible Investment Association (RIA) is pleased to announce the release of its 2020 annual report. The report summarizes the organization’s progress along its five strategic priorities for achieving the RIA’s overarching goal of driving the adoption of responsible investing (RI) in Canada’s retail and institutional markets.

The year 2020 was a challenging year many organizations, including the RIA. As the pandemic escalated in March of last year, we pivoted to a remote work environment and cancelled numerous projects and events, including our annual conference. Thanks to our committed team and our supportive members, we were able to rapidly adapt and deliver the 2020 RIA Virtual Conference, which hosted a record-setting 940 attendees.

In 2020, RIA membership continued to grow across both organizational and individual segments. We finished 2020 with 360 individual members, up from 271 a year prior, and our organizational membership grew from 128 to 136 over the same period. Combined, our total membership grew from 399 to 496 during 2020 – a growth rate of 24.3%.

At the end of 2019, we had granted a total of 897 credentials to professionals in our RIAC, RIPC and RIS programs. By the end of 2020, this figure grew to 1736, nearly doubling our cumulative figure within one year. This growth is driven primarily by strong uptake of our Responsible Investment Specialist (RIS) program among retail advisors.

The RIA’s five strategic priorities:

1. Educate: We will continue to promote education for the industry and the broader market.
2. Catalyze: We will play a leadership role in catalyzing market development and promoting market integrity in Canada with respect to RI.
3. Advocate: We will advance a policy/regulatory environment that is conducive to RI.
4. Build: We will continue to build our brand and reputation as the hub and leading voice for RI in Canada.
5. Grow: We will continue to focus on growing our financial and human capital resources to strengthen our capacity..

The Annual Report summarizes our work toward delivering on these priorities in 2020. Download the full report here.

About the Responsible Investment Association
The Responsible Investment Association (RIA) is a nonprofit, membership-based organization dedicated to the advancement of responsible investment in Canada. The RIA’s membership is composed of over 400 institutional investors and investment professionals who practice and support responsible investing. To learn more about the RIA, please visit www.riacanada.ca.

Speakers:
Ian Robertson, VP, Director and Portfolio Manager, Odlum Brown
Jackie Cook, Director of Investment Stewardship Research, Morningstar
Michelle de Cordova, Principal, ESG Global Advisors Inc.
Greg Dalgetty, Senior Editor, Investment Executive

With more and more headlines about “greenwashing” in the news, RI advisors will likely need to spend increased time fielding questions and addressing concerns about the topic.

At the RIA’s final conference session, Greg Dalgetty, Senior Editor at Investment Executive, explained the concept of greenwashing as “when an investment fund makes false or misleading claims about how sustainable it is.”

“Greenwashing really poses the question: what’s inside the tent?” he added.

One extreme example of greenwashing is a fund that says it has no holdings in the energy sector but, in reality, holds positions in multiple oil and gas companies.

“However, just because a responsible investing (RI) fund invests in oil and gas doesn’t mean it’s greenwashed. A fund may invest in the energy sector through an ESG lens or use shareholder engagement with energy companies,” Dalgetty said.

Clients concerned with greenwashing may question why certain securities are in their portfolio based on their perceptions of the company and how it behaves in its communities.

Audience poll

“It comes back to an education process and making sure that client expectations are aligned well with the processes being used. For example, are we using an exclusionary process that’s maybe a best-in-class approach where you’re trying to screen out complete sectors altogether or more of an ESG integration approach?” said Ian Robertson, Vice President, Director and Portfolio Manager at Odlum Brown.

“It’s an ongoing process of communication and education.”

Audience poll

Using Nestlé as an example, the panelists discussed how bad press can make clients question companies in their portfolios.

“One of the challenges is trying to marry what may be an individual client’s personal feelings, memories and so on about a particular company against what we may call the objective research on that company,” said Michelle de Cordova, Principal at ESG Global Advisors Inc.

“Nestlé is a great example,” she said, “It’s a company people feel extremely strongly about, partly because of the baby milk scandals of the 1990s, but at the same time, on many of the benchmarking exercises, Nestlé comes out very, very high. They have very good policies and processes. The values reaction of an investor and what we may call the objective research on a company can be quite different.”

The discussion then turned toward how advisors concerned about greenwashing can evaluate an asset manager’s commitment to the ESG products they manage.

“Investment managers would be well advised to have a good overview of what the ESG commitment level is of the asset managers behind the products that they’re recommending, said Jackie Cook, Director of Investment Stewardship Research at Morningstar.

At Morningstar, for instance, their evaluation is built around three pillars: philosophy and process, resources and active ownership. .

“If an advisor is wanting to get a quick lay of the land when it comes to the ESG commitment level of an asset manager behind the products that they’re recommending or advising on, look at the public disclosure around stewardship. That’s really where the rubber meets the road,” Cook said.

“If an asset manager is engaging and voting and using their influence to advocate on ESG, it really does reveal a stronger level of commitment.

Speakers:
Jonathan Lo, VP and Client Portfolio Manager, AGF Investment Management
Sucheta Rajagopal, Portfolio Manager, Research Capital Corp.
Carol Smith, Financial Advisor, Desjardins Financial Security Independent Network
Melissa Shin, Editorial Director, Advisor’s Edge & Investment Executive

During the COVID-19 pandemic, retail clients have become much more keen to learn about the “S” in environmental, social and governance (ESG) issues.

Previously, clients didn’t pay as much attention to the social aspect of ESG, but “it really came to the forefront last year,” said Sucheta Rajagopal, Portfolio Manager of Research Capital Corp. at the final day of the RIA conference. People became much more invested in the ESG-related stories they were reading or hearing in the news.

For instance, when Empire Co., owner of Sobey’s, Foodland and FreshCo, brought back a wage bump to its employees known as “hero pay,” clients started talking about investing in the company.

“[Clients] were connecting what’s going on in their life with publicly traded companies that may or may not be in their portfolio to an extent that I had not seen before on the social side,” Rajagopal said.

Carol Smith, Financial Advisor at Desjardins Financial Security Independent Network, noticed the same thing with her clients.

“The pandemic definitely opened up a lot of dialogue and everybody was sort of in their feelings. Everyone was very vulnerable. And there was just a lot of really good communication,” Smith said.

She had quite a few conversations with clients about social issues and topics like net zero, and even hosted a couple of webinars. Advisors should take this as a sign that clients are more eager than ever to discuss ESG topics.

Both Rajagopal and Smith also said they had more prospective clients reach out because of their RI specialties, and they also received more referrals from their existing client base.

“In 2020, I had several people actually approaching me about RI. My experience in the past seven years plus was that people weren’t approaching me about RI. It was something that I had done as my process,“ said Smith.

The composition of her book is now changing because of her increased focus. “My mainstream investments are shrinking and my RI holdings are growing,” she said.

Both Smith and Rajagopal noted in the session that younger clients are particularly intrigued about ESG and may be seeking advisors with an RI specialty. Additionally, Smith and Rajagopal noted that their RI clients are considered “sticky,” regardless of age.

“We’re going to see trillions of dollars moving from one generation to a newer generation and I would say that the younger generation is definitely much more concerned. They view some form of socially responsible investing as table stakes. They have very few problems choosing me,” Rajagopal said.

“And because your clients are with you for more than the returns, when you have a tough year in the market, you’ve got these other stories that you can point to around values alignment and why they’re holding certain companies. It’s very encouraging. It gives you something to talk about and it gives clients a reason to hang in.”

On the asset management front, “the expectations of asset managers have really changed,” said Jonathan Lo, VP and Client Portfolio Manager of AGF Investment Management.

“It’s really evolved from just the single question of, ‘do you consider ESG?’ to a series of questions around how we do that, how we engage and how we measure impact, etc.”

Going forward, Lo predicts a proliferation of products in the market.

“With inflows so strong in the space and so many commitments to integrate ESG, asset managers have responded with a lot of products. There are a lot of portfolios out there making some claim to ESG and sustainability and the space has become a lot more competitive.”

This will likely call for greater education so industry professionals and clients alike can distinguish between products.