ALIGN YOUR INVESTMENTS WITH YOUR PERSONAL BELIEFS ABOUT SUSTAINABILITY
Invest in companies that provide solutions to global environmental and social challenges and have strong corporate governance practices, for example:
Environment
- climate change and biodiversity
- renewable energy
- clean transport
- green buildings
- energy efficiency
Social
- affordable housing
- diversity
- access to nutrition
- disease prevention
- protection of personal digital privacy
- human rights and children’s rights
- workers conditions in supply chain, etc.
Governance
- business ethics
- board structure
- executive pay
- shareholder rights
- accounting practices
Sustainability and financial returns are not trade-offs. We believe consideration of material environmental, social, and governance (ESG) factors in analysis and portfolio construction can help mitigate risk and enhance portfolio’s risk-adjusted returns. Disciplined research is at the core of our investment process, and integrated management of all risks – ESG included - gives us a more accurate view of our investments. CI GAM’s practice of ESG analysis and portfolio construction is done with the primary view of achieving best risk-adjusted returns for clients.
DECARBONIZATION / CLIMATE CHANGE THEME
CI Global Climate Leaders Fund |
CI Global Green Bond Fund |
CI Global Sustainable Infrastructure Fund |
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Invests in stocks of companies whose earnings prospects are expected to improve with increased global focus on decarbonization. For example, portfolio manager has identified the following sectors and trends:
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A global fixed income strategy that invests in green bonds of companies, government, and government-related issuers. Green bonds are fixed income securities in which the proceeds will be applied to projects that promote climate or other environmental sustainability purposes. The Fund uses the following selection criteria:
For environmental impact of the Fund, please see this Impact Report |
Invests in stocks and bonds of companies that are positioned to benefit from the transition toward decarbonization, digitization and sustainability. The companies held in the fund may have direct or indirect exposure to sustainable infrastructure in the following industries:
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ENVIRONMENTAL AND SOCIAL IMPACT INVESTING
CI MSCI World ESG Impact Fund
An indexed strategy that seeks to replicate the performance of MSCI World ESG Select Impact ex Fossil Fuels Index that uses:
1) Positive screening to target companies that have a positive impact2 on the environment and society across 11 impact areas aligned with the United Nations Sustainable Development Goals3:
- Alternative energy
- Energy efficiency
- Green buildings
- Sustainable water
- Pollution prevention
- Nutrition
- Major disease treatment
- Sanitation
- Affordable Real Estate
- Small and medium enterprise finance
- Education
2) Negative screening to exclude:
- Companies with fossil fuels reserves used for energy purposes
- Companies involved in severe controversial events – as assessed by the index provider research team
- Alcohol production
- Gambling operations and support services
- Tobacco production
- Nuclear power generation
- Weapons manufacturing, including controversial and nuclear weapons.
BROAD ESG FUND-OF-FUNDS STRATEGIES
CI Mosaic ESG ETF Portfolios
Invests in a fund of funds that generally employ ESG-oriented investment strategies such as:
ESG Integration
Focus is on ESG factors that may materially impact investment risk and return
Negative Screening
Exclude certain sectors and companies, typically based on ethics or moral
Thematic Investing
Seeks to invest across a range of ESG themes
Impact Investing
Seeks to generate a measurable positive ESG impact alongside a financial return
CI GAM is a signatory to the United Nations’ Principles for Responsible Investment4 – the global network of 4,395 investor signatories with USD 121.3 trillion in assets under management as of 31 March 2022. Our commitment, approach and process for responsible investing can be found in CI GAM’s Responsible Investing Policy.
1 The voluntary market standard – International Capital Markets Associations’ Green Bond Principles – defines green bonds as ‘any type of bond instrument where the proceeds or an equivalent amount will be exclusively applied to finance or re-finance in part or in full, new and/or existing eligible Green Projects and which are aligned with the four core components of the Green Bond Principles’. The four principles are: 1) Use of proceeds [Renewable energy / Energy efficiency / Pollution prevention and control / Environmentally sustainable management of living natural resources and land use/ Clean transportation/ Sustainable water and wastewater management climate change adaptation/ Circular economy-adapted products, production technologies and processes; and/or certified eco-efficient products / Green buildings], 2) Process for green project evaluation and selection, 3) Management of proceeds, 4) Reporting of the environmental impact.
2 MSCI World ESG Select Impact ex Fossil Fuels Index: the index tracks companies with 30% revenue exposure to 11 impact areas aligned with the United Nations Sustainable Development Goals.
3 Sustainable Development Goals | United Nations Development Programme (undp.org)
4 https://www.unpri.org/pri/what‐are‐the‐principles‐for‐responsible‐investment
Commissions, trailing commissions, management fees and expenses all may be associated with an investment in mutual funds and exchange-traded funds (ETFs). Please read the prospectus before investing. Important information about mutual funds and ETFs is contained in their respective prospectus. Mutual funds and ETFs are not guaranteed; their values change frequently, and past performance may not be repeated. You will usually pay brokerage fees to your dealer if you purchase or sell units of an ETF on recognized Canadian exchanges. If the units are purchased or sold on these Canadian exchanges, investors may pay more than the current net asset value when buying units of the ETF and may receive less than the current net asset value when selling them.
MSCI is a trademark of MSCI Inc. The MSCI indexes have been licensed for use for certain purposes by CI Global Asset Management (“CI GAM”) in connection with the CI ETFs (the “ETFs”). The ETF and the securities referred to herein are not sponsored, endorsed or promoted by MSCI Inc. or any of its affiliates (collectively, “MSCI”) and MSCI bears no liability with respect to any such fund or securities or any index on which such fund or securities are based. The ETF’s prospectus contains a more detailed description of the limited relationship MSCI has with CI GAM and any related funds.
This information on this document is provided as a general source of information and should not be considered personal, legal, accounting, tax or investment advice, or an offer or a solicitation to buy or sell securities. Every effort has been made to ensure that the material contained herein is accurate at the time of publication. Market conditions may change which may impact the information contained in this document.
CAPABILITIES
CI Global Asset Management’s strength comes from our unique lineup of portfolio managers and the variety of expertise and experience that they provide.
ESG INSIGHTS
Thought leaders and portfolio managers from across CI Global Asset Management offer insights into trends, and policies that are creating investment risks—and opportunities—for ESG investments.
Ernst & Young LLP is the auditor of the Canadian Reporting Issuer investment funds managed by CI Global Asset Management or its affiliates (the “Funds”). Ernst & Young LLP is independent with respect to the Funds in the context of the CPA Code of Professional Conduct of the Chartered Professional Accountants of Ontario. For the year ended March 31, 2024, fees paid or payable to Ernst & Young LLP and its network firms for audit services to the Funds were $2.2 million. Fees for other services were $0.4 million.
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