Supporting companies that align with your beliefs and values is more important than ever. We get it! That’s why we provide access to Responsible Investing. Why not make money while making a difference?
What is Responsible Investing?
Simply put, Responsible Investing is asking your money to do more. Not so simply put, Responsible Investing combines the analysis of environmental, social, and corporate governance (ESG) factors with traditional financial analysis when making decisions on which companies to invest in.
There are plenty of multinational companies that are taking steps to make the world a better place through progressive business practices. These companies have additional goals such as reducing environmental impact, supporting their employees with fair compensation and safe work conditions, and creating a work culture that is inclusive and empowers women. All without compromising the bottom line. In fact, A 2015 report from the Morgan Stanley Institute for Sustainable Investing found that responsible equity mutual funds met, or exceeded, the median return of traditional equity funds 64% of the time. It also found RI funds had equal, or lower, median volatility about two thirds of the time.
Companies that take these mandates seriously are less likely to get caught up in controversies like environmental disasters (e.g. oil spills) or community protests (e.g. human rights rallies). Proactive responsible business practices protect companies by reducing their exposure to risks that may not be visible to the average investor on paper. This adds a layer of risk protection to your investment while helping to affect long-term change in the world. The more we invest in companies with these values, the more other companies will follow suit.
How does a Responsible Investing mutual fund work?
A mutual fund is a way for people to diversely invest in stocks, bonds, or equities with their money managed by a professional investment company. When putting together a responsible investment mutual fund, the fund manager investigates companies to determine their ability to deliver value in the long term. They also look at the company’s ESG standing to determine their ability to deliver a positive impact on the world and the people in it.
Who is taking advantage of Responsible Investing?
The rate of responsible investments across Canada and the world is on the rise. As of December 2017, reports show that responsible investment assets in Canada grew 41.6% over two years reaching $2.1 trillion. With climate change and political and social tensions on everyone’s mind, the demand for socially conscious investments is only going up.
With Responsible Investing, members can direct their investments towards companies that are advocates for things like human rights, female representation, and environmentalism. Members can also decide where they don’t want their money to go; to companies that exploit workers, deal in firearms, or destroy the planet.
To speak to an advisor in your region, you can click the link below to send an email to our Investment Solution Centre team, you can call them at 1-855-788-8999, or you can book an appointment at the branch nearest you. We look forward to learning about your investment goals and discussing your financial future.
Mutual funds are offered through Credential Asset Management Inc. Mutual funds and other securities are offered through Credential Securities, a division of Credential Qtrade Securities Inc. Credential Securities is a registered mark owned by Aviso Wealth Inc