News and resources for Canada's top financial advisors
For more on the SRI survey, check the Corporate Knights Web site.
Filed by Doug Watt, Advisor.ca, dwatt@advisor.ca
(02/18/03)
For more on the SRI survey, check the Corporate Knights Web site.
Filed by Doug Watt, Advisor.ca, dwatt@advisor.ca
(02/18/03)
For more on the SRI survey, check the Corporate Knights Web site.
Filed by Doug Watt, Advisor.ca, dwatt@advisor.ca
(02/18/03)
“Advisors and investors often look to awards or top 100 lists for guidance on where the smart money is going,” Hawton adds. “I think this list is a welcome addition and a valuable resource for sorting through the growing number of SRI funds in Canada.”
Here are the top 10 finishers in Corporate Knights 2003 SRI fund ranking:
For more on the SRI survey, check the Corporate Knights Web site.
Filed by Doug Watt, Advisor.ca, dwatt@advisor.ca
(02/18/03)
(February 18, 2003) Ethical Funds and Meritas Mutual Funds are the clear winners in an extensive survey of Canada’s socially responsible mutual fund universe, conducted by Corporate Knights magazine. Ethical and Meritas placed eight funds in the survey’s top 10, an analysis based on screening, engagement and performance.
Each fund was asked to list all of its positive and negative screens. The most popular negative screens were tobacco, weapons and human rights abuses while the most frequently cited positive screens were the environment, employee relations and gender equity.
The funds were also asked questions relating to proxy voting, dialogue with companies and shareholder activism.
Performance was based on data from December 31, 2002, and dating back 21 months, the longest time period that captured three-quarters of Canada’s SRI funds. The final score was based on an equal weighting between screening, engagement and performance.
Ethical’s Special Equity finished first, followed by Meritas Canadian Bond, Meritas Money Market and Ethical Global Bond.
“Ethical and Meritas, along with Mackenzie, have the soundest engagement and screening practices,” says Corporate Knights publisher Toby Heaps. But Heaps says it was performance that made the real difference. “The number-one fund also had the best performance number,” he says.
The survey concludes that while screening has at best a passive influence on corporate practices, shareholder action makes a difference, by framing social and environmental concerns in financial terms.
“It hits home the point that the most meaningful part of SRI is engagement,” Heaps adds. “Screening is full of holes and amounts to little more than feel-good investing in most cases.”
Heaps says he hopes that by fusing the social and financial aspects of SRI funds, the survey will simplify the process for investors looking for a strong all-round social fund for their portfolio.
“It also shows that there is a sufficient diversity of SRI funds spanning the full gamut of asset classes for investors who want to construct their interior portfolio with SRI funds exclusively,” he adds.
“This is something we’ve been doing since 1986 and we’ve grown, learned and evolved,” says Margaret Yee, president of Ethical Funds. “It’s a very exciting industry and you’re going to see more and more people become interested and get involved,” she adds. “Many people laughed in 1986, but now you’re seeing a tremendous interest.”
Meritas president Gary Hawton says the survey results support his contention that the firm takes all facets of socially responsible investing seriously. “We have some of the most comprehensive screening guidelines in Canada. We are actively involved in shareholder dialogue and engagement issues and we believe that we have hired investment managers who will look provide the competitive financial return that investors and advisors want,” he says.
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“Advisors and investors often look to awards or top 100 lists for guidance on where the smart money is going,” Hawton adds. “I think this list is a welcome addition and a valuable resource for sorting through the growing number of SRI funds in Canada.”
Here are the top 10 finishers in Corporate Knights 2003 SRI fund ranking:
For more on the SRI survey, check the Corporate Knights Web site.
Filed by Doug Watt, Advisor.ca, dwatt@advisor.ca
(02/18/03)
(February 18, 2003) Ethical Funds and Meritas Mutual Funds are the clear winners in an extensive survey of Canada’s socially responsible mutual fund universe, conducted by Corporate Knights magazine. Ethical and Meritas placed eight funds in the survey’s top 10, an analysis based on screening, engagement and performance.
Each fund was asked to list all of its positive and negative screens. The most popular negative screens were tobacco, weapons and human rights abuses while the most frequently cited positive screens were the environment, employee relations and gender equity.
The funds were also asked questions relating to proxy voting, dialogue with companies and shareholder activism.
Performance was based on data from December 31, 2002, and dating back 21 months, the longest time period that captured three-quarters of Canada’s SRI funds. The final score was based on an equal weighting between screening, engagement and performance.
Ethical’s Special Equity finished first, followed by Meritas Canadian Bond, Meritas Money Market and Ethical Global Bond.
“Ethical and Meritas, along with Mackenzie, have the soundest engagement and screening practices,” says Corporate Knights publisher Toby Heaps. But Heaps says it was performance that made the real difference. “The number-one fund also had the best performance number,” he says.
The survey concludes that while screening has at best a passive influence on corporate practices, shareholder action makes a difference, by framing social and environmental concerns in financial terms.
“It hits home the point that the most meaningful part of SRI is engagement,” Heaps adds. “Screening is full of holes and amounts to little more than feel-good investing in most cases.”
Heaps says he hopes that by fusing the social and financial aspects of SRI funds, the survey will simplify the process for investors looking for a strong all-round social fund for their portfolio.
“It also shows that there is a sufficient diversity of SRI funds spanning the full gamut of asset classes for investors who want to construct their interior portfolio with SRI funds exclusively,” he adds.
“This is something we’ve been doing since 1986 and we’ve grown, learned and evolved,” says Margaret Yee, president of Ethical Funds. “It’s a very exciting industry and you’re going to see more and more people become interested and get involved,” she adds. “Many people laughed in 1986, but now you’re seeing a tremendous interest.”
Meritas president Gary Hawton says the survey results support his contention that the firm takes all facets of socially responsible investing seriously. “We have some of the most comprehensive screening guidelines in Canada. We are actively involved in shareholder dialogue and engagement issues and we believe that we have hired investment managers who will look provide the competitive financial return that investors and advisors want,” he says.
|
Related News Stories |
|
|
“Advisors and investors often look to awards or top 100 lists for guidance on where the smart money is going,” Hawton adds. “I think this list is a welcome addition and a valuable resource for sorting through the growing number of SRI funds in Canada.”
Here are the top 10 finishers in Corporate Knights 2003 SRI fund ranking:
For more on the SRI survey, check the Corporate Knights Web site.
Filed by Doug Watt, Advisor.ca, dwatt@advisor.ca
(02/18/03)
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