By Canada Life Investment Management Ltd. | Sept. 17, 2021
Our world is changing faster than ever. Environmental issues are growing more acute and social pressures are thrust into public view every day. Clients care about making the world a better place – for life as they know it today, and for life as they want it to be in the future. Responsible investing is one way Canadians can influence positive change.
Are you talking to your clients about what they care about?
72% of Canadians are interested in responsible investing solutions but only 28% of advisors are having the responsible investing conversation with their clients.1
Why responsible investing?
Responsible investing isn't just about investors’ personal values. It's also starting to have an even bigger impact on their investment risks. Systemic risks ‒ changes in the business cycle or interest rates – are more well known and understood by the market. However, the market doesn't do as well with risks that are difficult to predict or quantify. Environmental, social and governance (ESG) risks fall into this category – and they’re becoming top of mind for investors looking to better manage risk.
What is an ESG risk?
ESG criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Here are some examples of how they have impacted the market.
- In April 2010, BP’s oil rig Deepwater Horizon exploded in the Gulf of Mexico, creating an environmental disaster and significantly impacting biodiversity. The total bill topped an estimated $65 billion between fines and cleanup costs.2
- In 2011, severe flooding in Thailand disrupted automotive and technology supply chain networks. The World Bank estimated $46.5 billion in economic damages and losses due to this flooding.3
- Poor governance resulted in millions of Volkswagen cars recalled after the company admitted to falsifying emissions tests. As of mid-2020, the scandal had cost Volkswagen $33.3 billion in fines, penalties, financial settlements, and buyback costs.4
An investment approach that takes ESG factors into consideration can uncover risks that may not have been seen previously, helping to better manage risk in your client’s portfolios.
Introducing Canada Life Sustainable Portfolios
Our three new Canada Life Sustainable Portfolios look to invest in companies that strive to make a positive contribution to society and the environment while limiting investments in companies considered to have damaging or unsustainable business practices. The best part? Clients get all this in a single investment solution.
Using our multi-asset total portfolio solution, these portfolios offer a sophisticated all-in-one approach by combining investment benefits with a positive ESG influence. This helps your clients invest in a way that aligns with their values without sacrificing returns. Think of it as balancing purpose with performance. With three different risk levels – Conservative, Balanced and Growth – we look to meet your clients’ needs as they grow and change.
Each fund is diversified globally across equities and fixed income and has the right portfolio management tools in place to navigate volatile markets.
Our portfolios deliver three pillars of strength:
- Purpose driven to align with ESG values. We invest in companies that demonstrate strong environmental, social and governance practices so that your clients can make a positive influence for a more sustainable world.
- Performance focused to deliver confidence. Strategically engineered multi-asset total portfolio solution with all the elements needed to navigate challenging markets while seeking to deliver strong risk-adjusted returns.
- Powerful partnerships to produce continuing success. An investment process that harnesses the collective thinking of an entire global network of experts who invest with your clients’ money and values in mind.
Strategically engineered total portfolio solution
Canada Life Sustainable Portfolios are designed by setting a strong strategic asset allocation, followed by selecting high-conviction strategies, then actively managing the asset allocation and risk of the portfolios. Constructing portfolios in this holistic way helps to improve its resilience by managing risks, identifying opportunities and ultimately delivering the potential for strong returns.
A globally recognized asset manager
J.P. Morgan Asset Management (Canada) Inc.Opens a new website in a new window (JPMAM) is the sub-advisor for Canada Life Sustainable Portfolios. Sustainable investing touches every part of their business, from senior management to the investment team, from risk management to technology. With their forward-looking investment approach, they aim to deliver long-term sustainable financial returns in a fast-changing world. With a presence in more than 20 countries and more than 1,000 investment professionals worldwide, JPMAM has a proven track record in managing multi-asset portfolios for more than 50 years. When you combine this depth of experience in multi-asset investing with the firm’s extensive resources dedicated to ESG analysis, what you ultimately get is excellence in multi-asset investing done responsibly. These new three new sustainable portfolios are available now. Learn more about how you can help your clients get started with the new Canada Life Sustainable Portfolios on Canadalife.comOpens in a new window.
J.P. Morgan Asset Management is the brand for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. J.P. Morgan Asset Management (Canada) Inc. is sub-advisor of the Canada Life Sustainable Portfolios and an indirect, wholly owned subsidiary of JPMorgan Chase & Co. JPMorgan Asset Management (Canada) Inc., is a registered Portfolio Manager and Exempt Market Dealer in all Canadian provinces and territories except the Yukon and is also registered as an Investment Fund Manager in British Columbia, Ontario, Quebec and Newfoundland and Labrador.
The information provided is based on current tax legislation and interpretations for Canadian residents and is accurate to the best of our knowledge as of the date of publication. Future changes to tax legislation and interpretations may affect this information. This information is general in nature and is not intended to be legal or tax advice. For specific situations, you should consult the appropriate legal, accounting or tax advisor.
Canada Life Sustainable Portfolios are available as a mutual fund managed by Canada Life Investment Management Ltd. offered exclusively through Quadrus Investment Services Ltd. Make your investment decisions wisely. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.
Canada Life and design are trademarks of The Canada Life Assurance Company.