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My advice • December 17, 2019
modified on May 22, 2020

Investments Series - Responsible investment: Invest based on your values

An increasingly popular option

Pierre-Raphaël Comeau
Expert Advisor, Wealth Management
and Financial Planner
LBC Financial Services

Responsible investment, which has existed for about 10 years, refers to integrating environmental, social and governance (ESG) criteria into investment selection and management. For some time, a noticeable trend in consumer spending has consisted in voting with one’s wallet, meaning choosing products and services from socially responsible companies. It may be the logical continuation of environmentally responsible behaviours, such as putting your groceries in reusable bags and containers, participating in environmental walks, recycling and composting at home, and buying an electric car. Another way to practise what you preach is investing in socially responsible funds.

Real interest in ethical investments

According to the latest survey by the Responsible Investment Association, 77% of Canadian investors are interested in this type of investment. Investors’ primary, if not only, consideration used to be getting the best possible financial returns. This is no longer the case. More and more of us are assessing the environmental, social, and governance issues of the companies we’re investing in. These include green and renewable energy, working conditions, community relations and the presence of women on boards of directors. While no company can be perfect in all three ESG segments, those in socially responsible funds stand out in at least one of these three areas.

Ethical and financial goals

While responsible investment contributes to positive social change, it can also improve long-term financial performance. These companies use sound management measures, including risk management, and have a long-term vision. As a result, ethical goals very often align with financial goals, as well.

Laurentian Bank is also interested in responsible investment. That’s why we offer via our LBC Financial Services subsidiary the Mackenzie Global Sustainability and Impact Balanced Fund, an ethical fund based on an in-depth analysis of the companies it holds, their risk management, as well as their societal and environmental impact. If you’re interested in this type of investment, talk to your advisor. You’ll then find out whether this would be a nice addition to your portfolio that reflects your values!

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