Source: Morningstar Direct. As of October 31, 2021.
Make a difference in the world
As ESG investing has evolved, so too has its ability to enable positive change. Nowadays, investors can employ impact or thematic investing, which allows them to use their capital to drive positive environmental and social outcomes globally.
The ability for ESG solutions to make a difference is also one of its biggest drivers. Due to investor demand, ESG funds gathered $21 billion in the first quarter of 2021—almost as much as they accrued in all of 2019 and 2020 combined—and its likely this trend will continue. There’s also the potential to get exposure to newer or growing market segments, like investing in the technology and infrastructure needed to help decarbonize our planet.
Now that we’ve covered the importance and advantages of ESG investing, let’s look at how you can make an impact on your portfolio.
Ways to include ESG in your portfolio
There’s a growing number of ESG solutions on the market, making it easier to find the right fit for your financial goals and your values. These can include investment strategies that employ screens to eliminate companies with poor ESG ratings, or funds that focus on specific themes. To demonstrate, we’ll take you through CI Global Asset Management’s (CI GAM) ESG solutions.
CI GAM ESG and impact funds
Mosaic ESG ETF Portfolios
CI MSCI World Impact Fund
CI Global Climate Leaders fund
Combine the advantages of managed solutions (diversification, asset allocation and more) with the benefits of ESG screening for sustainable risk-adjusted returns.
Designed to provide long-term capital growth by investing in securities from around the world with strong environmental, social and governance performance, all in the convenience of an ETF.
A concentrated portfolio of companies that are enabling the decarbonization of our planet and have the potential to grow over the long term.
Core investments in companies with high ESG ratings, complemented by investments focused on specific ESG themes.
Invests in four key themes contributing to positive environmental and social change:
- Climate change
- Natural capital
- Basic needs
Invests in companies four structural climate change categories:
Socially responsible investing
The integration of ESG factors is not exclusive to our ESG lineup. Approximately 75% of our assets under management are covered by our formal Responsible Investing Policy. This policy assists our investment management teams in identifying material ESG and financial risks and opportunities for a more holistic view of the companies in which we invest.
CI GAM’s Responsible Investing Process
- Step 1: In-house portfolio managers get continual access to third-party ESG data.
- Step 2: Investment exclusions list provided to in-house portfolio managers and external sub-advisors on an ongoing basis.
- Step 3: CI GAM’s ESG Team provides in-house portfolio managers with customized ESG screens of portfolios with flagged holdings.
- Step 4: In-house portfolio managers review flagged holdings and document findings.
- Step 5: Ongoing monitoring by CI GAM’s ESG Team.
Congratulations, you are now fully equipped to start your sustainable investing journey! If you’d like to incorporate ESG into your portfolio, reach out to your financial advisor or visit ci.com to discover how you can use your capital to drive positive change.