Responsible investment is part of FÉRIQUE Fund Management’s investment culture. Our approach is built on exercising proxy voting rights, integrating ESG criteria to the analysis process and investment decisions, and ensuring shareholder engagement
Our goal remains the same: promoting best practices through our choices and encouraging other businesses to adopt better behavior. There are several possible approaches to responsible investment, with sustainable investment being one of them.
What is sustainable investment?
To understand what sustainable investment entails, we must first define the concept of sustainability, which refers to seeking to fulfill our current needs without jeopardizing the ability of the future generations to meet theirs. The key concept of circular economy is intrinsic to the notions of sustainability and sustainable development. This economic model offers a set of strategies and business models to optimize resource use.
For a business to be deemed sustainable, it must take into account the long-term environmental, social and human impacts of their decisions instead of only focusing on short-term returns. Investing in these companies is the way toward sustainable investing
The chosen approach may change depending on the manager and the asset classes. For example, an equity manager may assess the sustainability of a company’s corporate practices using metrics. The manager will be able to build a portfolio that favours companies following the best practices in each sector. A bond manager may implement a sustainable approach by being partial to issuance of Green, Social or Sustainable bonds within the portfolio.
United Nations's sustainable development goals
Also known as Global Goals, the 17 Sustainable Development Goals are a call to action to eliminate poverty, protect the planet and bring peace and prosperity to everyone. Sustainable investment may contribute in a tangible way to reaching these goals.
Through shareholder engagement services provider Aequo, FÉRIQUE Fund Management engages in dialogues with companies in which it invests to drive them to improve their ESG practices. For example, a discussion with regard to the disclosure of employee management indicators was initiated last year with Dollarama and continued throughout 2020. This request falls within the scope of several Sustainable Development Goals, such as gender equality and the promotion of decent work for all.
For risk reduction
With most supply chains vulnerable to natural disasters, pandemics and civil wars, and climate change, clean water shortages and poor work conditions increasing these risks, sustainable development and investment bring about many concrete opportunities.
For example, in a recent dialogue with Enbridge conducted through Aequo, we have learned that, in spite of their relatively modest size (5%), their renewable energy operations remain a key sector for the company due to their growth potential and strategic importance. The business unit suffered virtually no impact from the COVID-19 pandemic, since it focuses its operations in wind and solar energy and contracts with European government authorities that are less likely to experience a drop in demand.
Issues that closely relate to investors' well-being
Regardless of the chosen approach, responsible investment is seen as a way to promote sustainable development.
To maximize your chances and better understanf responsible investment, it is important to seek advice from a professional. The advisors and mutual fund representative of FÉRIQUE Investment Services, the principal distributor of FÉRIQUE Funds, received the Responsible investment Advisor Certification from the Responsible Investment Association and could not provide adequate guidance. Contact them!
FÉRIQUE is a registered trademark of Gestion FÉRIQUE and is used under license by its subsidiary, Services d'investissement FÉRIQUE. Gestion FÉRIQUE is an Investment Fund Manager and assumes management duties in relation to the FÉRIQUE Funds. Services d'investissement FÉRIQUE is a Mutual Fund Dealer and a Financial Planning Firm, as well as the Principal distributor of the FÉRIQUE Funds. Please note that for commercial purposes, Services d'investissement FÉRIQUE is also known in English as FÉRIQUE Investment Services.
There may be brokerage fees, trailing commissions, management fees and expenses associated with investment in the Funds. Management expense ratios vary from one year to another. Please read the prospectus before investing. Mutual funds are not guaranteed, their values fluctuate frequently and past performance may not be repeated.
The hypothetical rates of return or mathematical tables are used only to illustrate the effects of the compound growth rate and is not intended to reflect future values of the mutual fund or returns on investment in the mutual fund.
The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns.
This document is intended for informational purposes only. The information provided does not constitute investment, financial, legal, accounting or tax advice. You should not act on the information without seeking the advice of a professional.