Category: News

Majority of investors surveyed believe companies need to take action against climate change and partner with Indigenous Peoples on decisions around a future energy transition.

TORONTO – December 8, 2021 – The vast majority of Canadian retail investors are concerned about climate change and want to see climate action reflected in their portfolios, according to a new survey from the Responsible Investment Association (RIA).

The 2021 RIA Investor Opinion Survey, which is based on an Ipsos poll of 1,000 individual investors in Canada, found that 85% of respondents agreed that Canadian corporations should set goals for their businesses to achieve net-zero emissions by 2050, and 78% agreed they would like a portion of their investment portfolio to be invested in companies that are providing solutions to reduce carbon emissions.

In a year that saw the emergence of a national dialogue on reconciliation, the survey found that 70% of respondents want Canadian companies in their portfolio to partner with Indigenous Peoples on decisions around a future energy transition.

The survey, sponsored by AGF Investments Inc. and Desjardins Group, also shows that 77% of respondents said they want their financial services provider to inform them about responsible investments that are aligned with their values, while only 27% said they had ever been asked if they were interested. About one-third of respondents said they currently own responsible investments, similar to last year.

“This research sends a clear message: Canadian investors want Canadian companies to align their businesses with a net zero future,” said Dustyn Lanz, CEO of the RIA. “It also shows that individual investors remain largely underserved by their advisors when it comes to responsible investing. There is a huge market opportunity for advisors who are willing to talk to their clients about sustainability issues.”

“For the transition to be just, it is critical that Indigenous voices be part of the decision process for the benefit of all Canadians,” said Mark Sevestre, Senior Advisor and Founding Member, National Aboriginal Trust Officers Association (NATOA).

“We are encouraged that the findings of this year’s survey indicate that Canadian investors are knowledgeable and supportive when it comes to the energy transition,” said Judy Goldring, President and Head of Global Distribution, AGF Management Limited. “As a leader in the development of sustainable investing, AGF is committed to providing solutions that support the transition to a more sustainable economy.”

“The survey clearly shows that Canadians want to take control of the impact their investments have on the environment,” said Éric Landry, Vice-President, Investment Solutions at Desjardins. “The financial industry can and must play a crucial role to educate and empower investors to make choices that align with their values and the needs of our environment and society – a goal that Desjardins has been working toward for more than 30 years.”

Highlights:

• 85% of respondents agreed that Canadian corporations should set goals for their businesses to achieve net-zero emissions by 2050.
• 70% of respondents reported that they want Canadian companies in their portfolio to partner with Indigenous Peoples on decisions around future energy transitions.
• An overwhelming number of respondents (85%) expressed concern about climate change and the environment.
• 80% of respondents would like their fund manager to encourage Canadian corporations to reduce their carbon emissions.
• 78% of respondents said they would like a portion of their investment portfolio to be invested in companies that are providing solutions to reduce carbon emissions.
• While 77% of respondents said they want their financial services provider to inform them about responsible investments that are aligned with their values, only 27% said they had ever been asked if they were interested. About one-third of respondents said they currently own responsible investments, similar to last year.
• Knowledge levels about RI are gradually improving over time. 69% of respondents said they know little to nothing about RI, including 20% who have never heard of RI. This is an improvement from last year when 75% said they knew little to nothing about RI, including 29% who had never heard of RI.
• Overall interest in RI is holding steady, with 73% of this year’s respondents expressing interest in RI. Interest among older investors showed a meaningful increase in interest compared to last year.

View the full report here.

About the RIA Investor Opinion Survey
The RIA publishes the RIA Investor Opinion Survey annually to track individual investors’ perspectives on responsible investment and various environmental, social, and governance (ESG) issues. The 2021 Survey is based on data collected by Ipsos from 1,000 Canadian individual investors between September 13th and 16th, 2021. 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 Responsible Investment Association (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. Learn more at www.riacanada.ca.

Media Contacts
Nick Buccheri
Director, Operations
Responsible Investment Association
+1 416-461-6042

Highlights from Q3 2021

• For the twelve months ending September 30, 2021, close to one-half of all responsible investment (RI) funds domiciled in Canada outperformed the average return in their respective asset class categories.
• Estimated net asset flows to Canada-domiciled RI funds in 2021 so far have been significantly positive. In the third quarter, flows totalled $2.2 Billion, comparable to the second quarter.
• Fourteen new RI funds were launched in the third quarter, of which 10 were active products and 4 were passive/indexed products. Year-to-date, 63 new funds have launched compared to 46 new funds in all of 2020.

RI Fund Performance

According to data provided by Morningstar, close to one-half (48%) of all Canadian RI funds (including RI mutual funds and ETFs) outperformed the average return in their respective asset class category during the 12-month period ending September 30, 2021. During the third quarter, a smaller proportion (44%) of Canadian RI funds outperformed their average asset class return.

Canadian RI funds performed well over the medium- to long-term periods reviewed in this report, relative to the average return of their asset class peers. As of September 30, 2021, 63% of the RI funds out-performed their average asset class return over the previous three years, and a similar percentage (65%) outperformed their average asset class return over the previous five years. One-half (51%) of the RI funds outperformed their average asset class return over the ten years ending September 30, 2021.

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

Canadian Equity

In the Canadian Equity fund class, the average RI fund return slightly lagged the overall average return in the third quarter 2021. Over two-thirds (70%) of RI funds outperformed the average asset class return over the 12-month period ending September 30, 2021. 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 third quarter of 2021. For the 12 months ending September 30, 2021, 53% of the RI funds in this category out-performed the average asset class return. Three-quarters of the RI funds in this category outperformed the average asset class return over the 3-year and 5-year periods, and over half of the RI funds outperformed the average asset class return over the 10 years ending September 30, 2021.

US Equity

In the US Equity fund class, while the average RI fund under-performed the average asset class return in the third quarter of 2021, a majority of the RI funds outperformed the average asset class return over the 12 months ending September 30, 2021. In the 3-year period reviewed in this report, 80% of the RI funds in this category outperformed the average asset class return, and two-thirds of the RI funds outperformed the average asset class return over the 5 years ending September 30, 2021.

Global Equity Balanced

In the Global Equity Balanced fund class, one-half of the RI funds outperformed the average asset class return in the third quarter. While one-quarter of the RI funds out-performed the average asset class return over the 12 months ending September 30, 2021, 76% of the RI funds outperformed the average asset class return over the 3-year period. The majority of the RI funds out-performed 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 third quarter of 2021. Total estimated flows amounted to $2.2 Billion for Q3, bringing year-to-date flows to $9.7 Billion.

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

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

RI Product Launches

According to Morningstar, a total of 14 RI funds launched in the third quarter of 2021, of which 10 were active funds while 4 were passive or indexed funds. A total of 63 RI funds have been launched in the first 9 months of 2021, already well ahead of the 46 RI funds launched in 2020.

Canadian RI Mutual Fund and ETF Launches, Active/Passive

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

Download Q3 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.

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.

Cory Baker (RIAC), Island Savings
Jean Pierre Beauchamp (RIS), Assante Wealth Management
Aryane Beaulieu (RIS), Gestion financière Assante
Brigitte Bélanger (RIS), services financiers Primerica
Clinton Black (RIS), Alterna Savings and Credit Union Ltd.
Heather Borrelli (RIS), Assante Wealth Management
Olivier Brasseur (RIS), CI Assante Capital Management Ltd.
Mark Bromilow (RIS), Vancity Credit Union
Patrick Carson (RIS), Aligned Capital Partners
Rahul Chawla (RIS), self-employed
Nick Childs (RIS), Sunlife
Johanne Claveau (RIAC), Financiere Banque Nationale : Groupe Claveau Gestion de patrimoine
Martin Côté (RIS), Services Financiers Martin Côté inc.
Tracy Cousins (RIS), SunCu Financial Services Inc
Peter D’Arcy (RIS), Vancity Credit Union
Nathalie Dubé (RIS), Service Signature Desjardins
Jean-François Dubuc (RIS), Solutions Financières Global inc
Mike Eckstein (RIS), RBC Global Asset Management
Patricia S. Eddington (RIS), Libro Credit Union
Albert Elmaleh (RIS), Assante Wealth Management
Brian Elson (RIS), Credential Securities / Westminster Savings Financial Planning Ltd
Dave Ferland (RIS), Magestra Groupe financier
Lisa-Kim Francoeur (RIS), Services Financiers BBF inc.
Kevin Gregory (RIS), Investia
Christophe Guendaz (RIS), Placements Manuvie Inc.
Jean Hage-Chahine (RIS), Alliance Services Financiers
David Helwig (RIS), Meridian Credit Union
Jennie Huard (RIS), Cabinet de services financiers Huard & associés
Jaimie Jacklin (RIS), Royal Bank of Canada
Steven Kronish (RIS), ASSANTE FINANCIAL MANAGEMENT LTD.
Mordechai Kuhnreich (RIS), Nour Private Wealth
Matthew Lahoud (RIS), WFCU Credit Union/Credential Asset Management Inc.
François Laneuville (RIS), Desjardins
Heatley Liang (RIS), Vancity
Liette Massé (RIS), Banque Nationale Assurances
Michael McKnight (RIS), Meridian Credit Union & Credential Securities Inc.
Shannon McMannis (RIS), Investia
Adrian Montoya (RIS), Alterna Savings and Credit Union Ltd.
Philippe Morin (RIS), Investia Services Financiers INC.
Joanick Myrand (RIS), Myrand Services Financiers inc
Slavica Nasevski (RIS)
Carol Nichols-Tremblay (RIS), Assante Capital Management
Alina Nicolau (RIS), Gestion de Fonds Férique
Dominic Noel (RIS), Investia Financial Services
Marie Phillips (RIS), Meridian/Credential Asset Manager
Ralph Plant (RIS), Latitude Financial Services Inc
Jeffrey Poirier (RIS), Canadian Heritage Wealth & Estate
Richard Poulin (RIS), BMO Global Asset Management
Chris Rafuse (RIS), CI Assante Wealth Management
Hannah Roberge (RIS), Fidelity Investments Canada ULC
Jeremy Rock (RIS), Alterna Savings and Credit Union Ltd
Malee Rubinstein (RIS), Investia Financial Services Inc
Gaëtan Sahal (RIS), Manulife
Zachary Sikorski (RIPC)
Shamini G Somasundram (RIS), Vancity Credit Union
Ognjen Todorovic (RIS), Fidelity Canada
Benoit Tremblay (RIS)
Timothy Winter (RIS)
Sheng Bo Xie (RIS), Vancity Credit Union

Citing their fiduciary responsibility, 36 institutional investors managing $5.5 trillion in assets have signed a new Canadian Investor Statement on Climate Change. The Statement, signed by asset management divisions of five of Canada’s largest banks along with major institutional investors such as the Ontario Pension Board, calls on companies to act on material climate risks including through their industry association and lobbying activities.

Coordinated by the Responsible Investment Association (RIA), the Statement also makes clear the actions major Canadian investors will take to advance the global pursuit of net zero ahead of the most important climate gathering in history – COP26.  This includes disclosing their financed emissions and setting an expectation that their investees will establish emissions targets and report on their progress.

“By centering reconciliation and a just transition, this statement adds a Canadian perspective that is missing from the global conversation,” says Dustyn Lanz, RIA CEO. “The signatories recognize that Canada’s path to net zero depends on a transition that leaves no one behind and supports the transformation of every sector, while aligning itself with Indigenous rights for self-determination.”

RIA worked closely with the Reconciliation and Responsible Investment Initiative (RRII) in the development of the Statement to ensure Indigenous perspectives are incorporated into the Statement. “Despite Indigenous Peoples often being the first and most affected by the climate crisis, Indigenous perspectives and voices are often left out of investors’ decision-making on climate action,” says Mark Sevestre, Founding Member of NATOA. “This raises the stakes of the transition to a low carbon economy for Indigenous Peoples. For the transition to be just in Canada, Indigenous Peoples’ rights and perspectives need to be centred and prioritized.”

Like their counterparts across the world, Canadian investors are also sending an unequivocal message to companies and governments that disclosure is key to maintaining and growing private investment in the low-carbon transition of our industries. “For the investment community, clear, comprehensive, comparable data isn’t a nice to have, it’s a must,” says Lanz.

“Ultimately, this is an invitation from Canadian investors to Canadian businesses to navigate this transition together,” explains Lanz. “The investment community is stepping up its game, so that the business community steps up theirs.”

The Statement remains open to additional investor signatories and Lanz expects this list will continue to grow as we approach a “tipping point” for sustainable finance momentum in Canada.

To learn more and read the full statement visit: https://www.riacanada.ca/investor-statement-climate-change/

The RIA would like to thank Jamie Bonham, Rosa van den Beemt, Delaney Grieg, Maia Becker, Susan Golyak and Reconciliation and Responsible Investment Initiative (RRII) for their individual contributions to the Statement.

Quotes from Signatories  and Supporting Organizations

“Institutional investors manage their clients’ assets, yet they are also in a position to play a key part in the quest for net zero emissions by 2050. As COP26 approaches, the financial industry should spare no effort in underscoring the urgency of the situation and in helping to prevent irreversible damage to the environment. The Canadian Investor Statement on Climate Change allows us to put this crucial matter in the spotlight.” Roger Beauchemin, Chair of the Board, RIA and President and CEO of Addenda Capital

“Collaboration across the institutional investment community is essential to driving change, as we seek a just transition to a net-zero economy. As an asset manager and investor, and steward of our clients’ assets, RBC Global Asset Management uses stewardship to communicate our views and expectations with issuers on climate actions, outcomes and disclosures. We look forward to our continued partnership with the RIA and other like-minded investors on this important initiative.” – Maia Becker, Director, Corporate Governance and Responsible Investment, RBC GAM

“The Canadian Investor Statement on Climate Change sends an important message to the Canadian business community that climate change poses a systemic risk to the Canadian economy, and as investors, we are hopeful that the businesses we invest in put forward credible plans to achieve net zero carbon emissions by 2050.” – Priti Shokeen, Head of ESG Research and Engagement, TDAM

“As Canadian investors, we recognize the importance of transitioning Canada to a low-carbon economy in a way that is just and informed by Indigenous perspectives. BMO GAM has a long history of active involvement in global climate initiatives, and we are pleased to show our support through this statement alongside many of our Canadian peers. We look forward to continuing to advance climate action in our investments, engagements, and industry.” – Nalini Feuilloley, Head of Responsible Investment, BMO GAM

“At Desjardins, the climate crisis is a top priority because we’re committed to ensuring the well-being of our communities, now and in the future. That’s why we’re joining forces with members of Canada’s financial industry to speed up the transition to a low-carbon economy. Our day-to-day operations are already carbon neutral. Our goal now is to achieve net zero emissions by 2040 in our procurement and lending activities and our own investments in 3 key carbon-intensive sectors: energy, transportation and real estate.” – Guy Cormier, President and CEO, Desjardins Group

“BCI is committed to seeing our clients capitalize on opportunities for value creation while mitigating the physical and transition risks associated with climate change. The Canadian Investor Statement on Climate Change represents another important step in making clear our expectations of the companies in which we invest while reinforcing our commitment to supporting the transition to a lower-carbon economy.”  –  Gordon J. Fyfe, CEO and CIO, British Columbia Investment Management Corporation (BCI)

“There is no simple or easy path to net zero, but we have to combine forces and harness our energies for the journey. This statement represents that collective ambition. NEI Investments is proud to be a signatory to the Canadian Investor Statement on Climate Change, and we look forward to working with our peers to drive progress toward a net-zero future.” – Jamie Bonham, Director, Corporate Engagement, NEI

See the full list of signatories here.

About the Responsible Investment Association
The Responsible Investment Association (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. Learn more at www.riacanada.ca.

Media contact
Ashley Kenley
Argyle PR for Responsible Investment Association
akenley@argylepr.com
647-967-9324

Climate Engagement Canada is a finance-led initiative that drives dialogue between the financial community and corporate issuers on climate change risks and opportunities

Today, a coalition of investor associations is pleased to announce the launch of Climate Engagement Canada (CEC) – a finance-led initiative that aims to drive dialogue between the financial community and Canadian corporations to promote a just transition to a net zero economy.

The CEC initiative is coordinated by several investor networks including the Responsible Investment Association (RIA), Shareholder Association for Research and Education (SHARE), and Ceres. The UN-backed Principles for Responsible Investment (PRI) is also supporting the program. The RIA and SHARE serve as the joint secretariat, and the initiative has leveraged strategic leadership from Barbara Zvan, who served as a member of Canada’s Expert Panel on Sustainable Finance.

The CEC program is launching with 27 investors as Founding Participants, who collectively manage more than $3 trillion in assets. A complete list of Founding Participants and supporting organizations is available on the CEC website at climateengagement.ca.

The CEC’s development was inspired by Canada’s Expert Panel on Sustainable Finance, which in 2019 made a series of recommendations to align Canada’s financial system with a low carbon future. One of the Expert Panel’s recommendations was to establish a national engagement program, akin to the global Climate Action 100+ initiative, to drive a broader and more consistent dialogue with Canadian issuers around climate risks and opportunities. Climate Engagement Canada is that program.

CEC investor participants will identify approximately 40 of the country’s highest greenhouse gas-emitting corporations, and will work collaboratively to engage with these companies to encourage leading practices with respect to climate change risks and opportunities.

“Climate Action 100+ set a clear precedent for collaborative shareholder engagement,” said Barbara Zvan, CEO of University Pension Plan and a former member of Canada’s Expert Panel on Sustainable Finance. “The question for the Expert Panel was how to adapt this successful model to the Canadian context to amplify climate ambition and action at home. What CEC delivers is a unified vision from Canada’s financial community and support for our businesses in finding competitive advantage in the transitioning economy.”

“Climate change is a systemic challenge for investors and capital markets as a whole,” said Kevin Thomas, CEO at SHARE. “It can’t be avoided, it can’t be hedged against, and it can’t be solved at an individual portfolio level. It requires ambitious, persistent collective action at a larger scale and faster pace. We’re bringing together the whole of the corporate balance sheet – shareholders, lenders, insurers, and others –to set a course for the biggest transition of our lifetime.”

“Collaborative shareholder engagement is the pinnacle of responsible investment, so we are thrilled to see this program come to life in the Canadian market,” said Dustyn Lanz, CEO of the RIA. “Canada’s financial community has set a new bar for climate engagement on a national scale, and we encourage our peers in other regions to build similar programs to help drive the transition to net zero globally.”

“At PRI we are delighted to support the development of Climate Engagement Canada (CEC),” said Fiona Reynolds, CEO of the UN-supported Principles for Responsible Investment. “As a country heavily dependent on fossil fuels, Canada’s transition to net-zero by 2050 is especially challenging. Collaborative engagements like CEC are crucial to harnessing the collective climate ambition of Canada’s financial community required for the country to fulfil its commitments to the Paris Agreement and undergo a just transition to a zero-carbon economy.’

“It is vital for the largest institutional investors in Canada to engage portfolio companies with a consistent and unified message to set and implement goals for reducing emissions and developing transition plans consistent with a net zero future,” said Mindy Lubber, Ceres CEO and President. “By looking beyond the six Canadian companies currently engaged through Climate Action 100+, Climate Engagement Canada is setting the stage for a deeper transformation of the Canadian economy and investor expectations of the companies they own.”

Investor Participant Statements:

• Melanie Adams, Vice President and Head, Corporate Governance and Responsible Investment, RBC Global Asset Management – “RBC Global Asset Management is pleased to be a Founding Participant in the Climate Engagement Canada program, and we look forward to driving the dialogue around climate-related risks and opportunities with Canadian issuers. We believe collaborative engagement with other like-minded investors is an effective way to motivate companies to implement strategies and take actions that consider the financial impacts of climate change, and to achieve a just transition to a net zero economy.”
• Amit Prakash, Chief Investment Strategy Officer, Alberta Investment Management Corporation (AIMCo) – “The Climate Engagement Canada initiative is well positioned to provide an invaluable service through its collaborative engagement platform. As investor stewards we believe it is our responsibility to engage with investees to promote real world climate strategies and resilient business models.”
• Rossitsa Stoyanova, Investment Management Corporation of Ontario (IMCO) Chief Investment Officer – “We are thrilled to be part of this critical initiative because we recognize that real action on climate change will require robust and meaningful dialogue with the Canadian financial community and with Canadian Corporations. At IMCO, we view Climate change as both a systemic investment risk and an opportunity. We consider the potential impacts of the transition to a low-carbon economy and the physical impacts of different climate outcomes with the objective of delivering long-term value to our clients.”
• Fate Saghir, SVP, Head of Sustainability, Mackenzie Investments – “While global investment stewardship initiatives have been impactful, we believe Climate Engagement Canada will provide Canadians, our economy, and our industry with the local expertise and perspectives that we deserve. We are very much encouraged by this initiative and look forward to collaborating across our industry to build a sustainable future for all Canadians.”
• Roger Beauchemin, President and CEO, Addenda Capital – “Since Addenda Capital is already participating in Climate Action 100+, we are truly excited to see its Canadian incarnation. We put engagement at the heart of our own stewardship activities, and the collaborative nature of CEC will only accelerate the pace toward a successful transition. In addition, today’s initiative highlights the fact that this transition will also need to remain focused on workers, businesses and communities across the country.”
• Kristi Mitchem, CEO, BMO Global Asset Management – “The launch of Climate Engagement Canada is an important step towards creating a low carbon economy. Earlier this year, BMO announced its climate ambition to be its clients’ lead partner in the transition to a net zero world. At BMO GAM, active engagement with our investee companies is an important tool in working towards our own net zero commitments and we look forward to furthering this through collaborative shareholder engagement in the Canadian market.”
• Michael Kelly, Chief Legal & Corporate Affairs Officer, OMERS – “Engaging with our portfolio companies is one of four key pillars of our sustainable investing strategy. Working with Climate Engagement Canada will help to amplify our voice and produce meaningful dialogue and impact for our engagement program. We are excited to be one of the founding partners of this initiative.”
• Jamie Bonham, Director, Corporate Engagement, NEI Investments – “We are excited to be a part of the CEC collaboration, as we’ve always believed that corporate engagement is the best way to drive real change. And considering the scope of the challenge ahead of all of us, collaboration makes particular sense in the Canadian context. CEC’s work will help investors amplify their impacts and bring much-needed clarity to help companies focus their strategic priorities.”
• Sarah Takaki, Senior Director, Sustainable Investing, Healthcare of Ontario Pension Plan (HOOPP) – “HOOPP is pleased to be a founding participant of Climate Engagement Canada, and to join with other institutional investors as a unified voice to engage companies and work together on climate action.”
• Priti Shokeen, PhD, Vice President & Director, ESG Research & Engagement at TD Asset Management Inc. – “TD Asset Management is proud to be a founding supporter of Climate Engagement Canada. We consider climate risk to be a fundamental issue facing Canadian companies across sectors and regions, and as such we are pleased to be joining this made in Canada initiative focusing on climate transition plans.”
• Christian Felx, Head of Responsible Investment, Desjardins Global Asset Management – “Inspiring and influencing is an important part of Desjardins Global Asset Management’s approach, and educating companies, members, clients, and communities about responsible investment is among its priorities. Shareholder engagement is therefore an integral part of our strategy. Initiatives like the CEC are essential to move the market rapidly to face the challenges of climate change. Desjardins Global Asset Management is proud to support the CEC and to work with other financial institutions to accelerate the transition to a low carbon economy.”

More Information

• Learn more about Climate Engagement Canada (CEC) here.
• Learn about the Responsible Investment Association (RIA) here.
• Learn about the Shareholder Association for Research & Education (SHARE) here.
• Learn about Ceres here.
• Learn about the Principles for Responsible Investment (PRI) here.

Media Enquiries
+1 416-461-6042

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.

Amber Tabian (RIS), Christian Credit Union
Harnoor Kaur Abrol (RIS), Simon Fraser University
Mavinel Agossou (RIS), Desjardins Caisse des Transports
Christopher Anders (RIS), self-employed
Vern Anderson (RIS), Mission Financial
Robert Bauml (RIS), Summit Financial
Constance Bédard (RIS), Gestion Financière Constance Bédard Inc.
Alexandre Bellerose (RIAC), Valeurs mobilières Desjardins
Jennyfer Blouin (RIS), Desjardins Caisse de l’Administration et des Services publics
Abigaël Boudreault (RIS), Magestra Services Financiers
Patrick Chambers (RIAC), Odlum Brown Limited
Lap Wai Chan (RIS), Vancity
Jean-François Choinière (RIS), Solutions Financière Global inc
Blake Cluff (RIS), Assante
Michael Colacone (RIS), Vancity Credit Union
Yohann Corbeil (RIS), Multi Courtage Capital inc.
Valérie Côté (RIS), Travailleure autonome
Camille Côté-Demers (RIS), Planica Cabinet de services financiers
Danny Delisle (RIS), Groupe Cloutier Investissements inc.
Jacqueline DeMoor (RIS), Libro Credit Union
Jessica Dubois (RIS), Caisse de l’Administration et des Services publics
Robert Dunlop (RIS), Summit Financial Planners Inc. | Investia Financial Services Inc.
Dawn (Hajlanka) Elias (RIS), Aviso Wealth / NEI
William Stewart Eveleigh (RIS), Fidelity Investments Canada
Angela Garant (RIS), Avanti Wealth/Credential Securities
Trevor Gatson (RIS), Credential Securities / Westminster Savings Financial Planning Ltd.
Sara Gooderham (RIS), PEAK Securities Inc.
Taralynn Hack (RIS), Affinity Wealth Management
Simon Harry (RIS)
Mark Hepplewhite (RIS), Credential Securities
Chris Hodgins (RIS), Independent Investment Solutions
Nathalie Jacques (RIS), Sunlife
Mohit Jaggi (RIS), Aviso Wealth
Jodi Michelle Jenkins (RIS), Sugar Lake Financial Ltd
Jean-Fidèle Kaptu Tchutchoua (RIS), Courtage CRH
Arlene Kipling (RIS), Freedom 55 Financial
Julie Lafrenière (RIAC), Valeurs mobilières Desjardins
Julie Lafrenière (RIPC), Valeurs mobilières Desjardins
Jared Lagoski (RIS), Synergy Credit Union
Yvan Landry (RIS), Efficience Tactique
Martin Lecavalier (RIS), Investia Services Financiers inc.
Chang Hoon Albert Lee (RIPC)
Margareth Lee-Shanok (RIS), Investia Financial Services
Jillian Lewis-Rath (RIS), Libro Credit Union – CAM
John Li (RIS), Desjardins Wealth Management
Sarah Loeppky (RIS), Investia Financial Services Inc.
Felicia Loh-Koh (RIS), Desjardins Financial Security
Sara Tryphena MacDonald (RIS), CU Financial Management
Greg MacKinnon (RIS), Latitude Financial
Robert McLean (RIAC), Connor Clark & Lunn Private Capital
Michael Middleton (RIS), Avanti Wealth
Carter Neal (RIS), RBC Global Asset Management
Jonathan Nesbitt (RIS), Nesbitt Financial Strategies Inc.
Sonny Nielsen (RIS), Credential Securities / Vancity Credit Union
Serge Nolin (RIS), GESTION DE PATRIMOINE PRIVÉ FORTUNE INC.
Jeff Olensky (RIS), Prospera Credit Union
Joosung (Jacob) Park (RIS), Alterna Bank
Paul Parmar (RIS), Credential Asset Management
Geoff Pomper (RIS)
Peter Daniel Pomponio (RIS), Investia
Martin Provost (RIS), Groupe Cloutier Investissements inc.
Laura A. Purje (RIS), SISIP Financial
Normand Quesnel (RIS), quesnel et associes
Jason Rindfliesch (RIS), Synergy Credit Union
Martin Rodrigue (RIS), Artisans services conseils Ltée
Brandon Rohrer (RIS), Investia
Gary Shaughnessy (RIS), Investia Financial Services – Shaughnessy Financial
Kelsey Smart (RIS), Smart Investments
Christiane Van Bolhuis (RIS), Financière Sun Life
Jean-Brice Yoou (RIS), IPC Investment Corporation
Hassan Yousafzai (RIS), DUCA Financial Services Credit Union Ltd.

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.

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