What is responsible investment?
This type of investment integrates analysis of environmental, social and governance (ESG) factors into the financial analysis of businesses with the goal of providing peace of mind to investors and helping them reach their financial goals in a responsible way.
To be included in an SRI fund, stocks are put through a rigorous, multi-phase evaluation process. First, a financial analysis of the business is done to determine whether it is reliable and solid. Note that businesses operating in certain sectors may also be excluded automatically. These sectors include the tobacco, nuclear power, military weapons, adult entertainment and gaming industries.
For investors specifically concerned about the quality of the environment, some funds are even more demanding. For example, since October 2019, our SRI Balanced (Inhance) Fund has been fossil fuel free. This means that no investments are made in:— Oil, gas or coal producers
— Pipeline companies
— Natural gas distribution
— Activities related to liquefied natural gas
Once these first stages have been completed, the company’s stock goes through a final evaluation. The company’s practices are assessed based on three factors: environmental, social and governance, known as ESG.
ESG factors are rigorously taken into account for our SRI fund, but they are also integrated into all of our investment processes. We committed to this in 2019 by becoming a signatory of the United Nations-supported Principles for Responsible Investment (PRI) through our iA Investment Management (iAIM) subsidiary.
The PRI were established to respond to the growing importance of business environmental, social and governance factors in investing practices. iAIM as well as the majority of our external managers are signatories of the United Nations Principles for Responsible Investment (PRI).
The socially responsible investment industry has soared in recent years. Since 2012, in fact, investments in SRI funds have been increasing by more than 100% each year.1
There is also a great deal of environmental awareness and enthusiasm for these funds, which generate particularly good returns. That’s why our teams of experts are working to further develop this sector to meet demand and remain even closer to our values as a carbon-neutral company.
Want to know more about our SRI fund? Our financial security advisors will be able to tell you all about it with interest and pride, thanks to the experienced partners we work with in this field. Our fund’s sub-adviser, Vancity Investment Management Ltd., is a leader in socially responsible investment and manages the SRI Balanced (Inhance) Fund, among others.