Helios2 Contract GUARANTEED INVESTMENT FUNDS FOR ADVISORS ONLY RESPONSIBLE INVESTMENT PORTFOLIOS Insurance refers to Financial Security Life Assurance Company.
Responsible Investment Portfolios Combine s expertise and the unique protection offered by the Helios2 Contract. Table Responsible investment portfolios DFS GIF Conservative SocieTerra DFS GIF Balanced SocieTerra DFS GIF Growth SocieTerra DFS GIF Maximum Growth SocieTerra Fixed Income 71.0% 55.0% 40.0% 20.0% SocieTerra Canadian Bond 63.9% 49.5% 36.0% 18.0% SocieTerra Environmental Bond 7.1% 5.5% 4.0% 2.0% Equity 29.0% 45.0% 60.0% 80.0% SocieTerra Canadian Equity 8.7% 13.5% 18.0% 24.0% SocieTerra American Equity 6.7% 10.5% 13.9% 18.6% SocieTerra International Equity 5.0% 7.7% 10.3% 13.8% SocieTerra Environment 2.0% 3.0% 4.1% 5.4% SocieTerra Positive Change 2.0% 3.0% 4.1% 5.4% SocieTerra Cleantech 2.0% 3.2% 4.2% 5.6% SocieTerra Emerging Markets Equity 2.6% 4.1% 5.4% 7.2%
Which funds make up these portfolios? Fund Name Manager Asset Class Why choose it? CANADIAN BOND FUND Wealth Management, Global Asset Management logo Canadian bond To invest in high-quality debt securities aligned with our ESG priorities. When the opportunity arises, the fund manager may also invest in green or social-impact bonds. The fund manager places the same emphasis on all three ESG criteria. FIRST IN CANADA! ENVIRONMENTAL BOND FUND Mirova logo Global bond Thematic fund To help finance highly transparent environmental projects. The fund manager seeks to optimize diversification across credit sectors while favouring investment grade bonds. CANADIAN EQUITY FUND Wealth Management, Global Asset Management logo Canadian equity To benefit from innovative security selection that leverages ESG strategies throughout the investment process. This low turnover fund allows investors to make the most of their influence as shareholders. The fund manager aims for ESG scores at least 10% higher than the benchmark S&P/TSX index, without compromising return potential. All three ESG criteria are equally emphasized. AMERICAN EQUITY FUND ClearBridge investments logo American equity To invest in the world s largest economy through best in class companies from an ESG perspective. The fund manager places the same emphasis on all three ESG criteria. ENVIRONMENT FUND Wealth Management, Global Asset Management logo Global equity Thematic fund To invest in companies with an environmental record that is better than that of their peers, without compromising on financial performance. The fund manager chooses companies with the lowest environmental impact within their industry. INNOVATIVE STRATEGY POSITIVE CHANGE FUND Baillie Gifford logo Global equity Thematic fund To invest in securities of companies from around the world whose products/services or behaviour are helping to build a more sustainable world for future generations. INTERNATIONAL EQUITY FUND Addenda Capital logo International equity To invest in securities of companies outside of Canada and the U.S. using a disciplined approach based on fundamental research and a thorough risk evaluation that integrates responsible investment practices, such as ESG factors. FIRST IN CANADA! CLEANTECH FUND IMPAX Asset management logo Small- and mid-cap global equity Thematic fund To benefit from strong growth by companies that offer concrete solutions to the environmental problems we face. The fund s sector allocation differs significantly from its benchmark. At least 50% of the revenues of the companies that make up this fund are derived directly from resource optimization. FIRST IN CANADA! EMERGING MARKETS EQUITY FUND Comgest logo Emerging markets equity To invest in securities of companies in emerging markets or that are very active in these markets and that care about the ESG impacts of their activities.
Extra-financial strategies Tap into a wider range of RI strategies Responsible investing is traditional investing with a tweak. On top of looking at the issuing companies financial performance, it also looks at extra-financial factors that are more likely to offer sustainable growth. SocieTerra Portfolios and Funds stand out for the range of extra-financial strategies their managers use. Exclusion filters We don t invest in tobacco, weapons, nuclear energy, etc. Best in class We choose companies that demonstrate best ESG practices in their sector. Thematic investing In high demand! We select top companies in sectors that are directly related to an ESG theme (available for certain SocieTerra products). Shareholder engagement Making change happen! We engage with companies to improve their ESG performance. For example, the SocieTerra Cleantech Fund invests in companies whose core business is to come up with specific solutions to the biggest environmental issues facing our planet. Exercising voting rights Shareholder dialogue Shareholder proposals
What does ESG mean? On top of a strictly financial analysis, responsible investing incorporates three additional factors: Environmental e.g., reduction of greenhouse gases Social e.g., working conditions Governance e.g., executive compensation Some products take all three criteria into consideration, while others focus on a particular area.
Responsible investing A great way to expand your client base Get ahead of the game Where institutional investors lead, retail investors follow. Canadian assets Think about the future of your business Millennials are the biggest segment of Canada s working population. 3 Invested according to RI guidelines 1 INSTITUTIONAL ASSETS Set to inherit 4 $30T 42 % Non-RI assets 58 % RI assets Twice as likely to consider RI than their parents 4 77 % individuals are interested in investments that take ESG factors into consideration. 2 2 out of 3 think their advisor should know about responsible investing 4 1 RI assets based on estimates published in the RI Trends Report, Responsible Investment Association, 2017. 2 Responsible Investment Association, RIA Investor Opinion Survey, 2017. 3 Canadian Business, Millennials are Now the Biggest Generation in the Canadian Workforce, June 3, 2015. 4 Responsible Investment Association, Millennials, Women and The Future of Responsible Investing, April 2016.
The transition to the green economy Is well underway 179 countries or territories have signed the Paris climate agreement 5 A pioneer in responsible investing Almost $3B in responsible investing assets under management. 7 US$334B was invested in global clean energy in 2017 6 A return potential that s just as attractive as what you d get with a traditional investment and sometimes even better! 6.29 % 6.79 % 1990 Launch of the Environment Fund: The first of its kind in Canada. Team up with world-recognized portfolio managers known for their responsible investing expertise Traditional market S&P/TSX 60 Responsible investment index Jantzi Social Index Annualized returns between January 1, 2000 and December 31, 2017. Source: Sustainalytics 5 United Nations Framework Convention on Climate Change, number and list of signatories as at August 24, 2018. 6 Bloomberg New Energy Finance, State of Clean Energy Investment, January 2018. 7 As at June 30, 2018. Includes all responsible investment products offered by Group.
Group is the leading cooperative financial group in Canada and the sixth largest in the world. The scope of our product and service offer is unique, encompassing expertise in wealth management, life and health insurance, property and casualty insurance, and financial services for individuals and businesses. has pioneered responsible investing in Canada and continues to be a leading supporter and promoter of this sector. $290.1 billion in total assets* + 7 million members and clients* Standard and Poor s A+ Moody s Aa2 Dominion Bond Rating Service AA Fitch AA- Offer the Helios2 Contract! Your regional sales director can help you sell the Helios2 Contract. Reach out today! * As at June 30, 2018. Insurance refers to Financial Security Life Assurance Company. This document is printed on Rolland Enviro paper. 100% 18050 E (2018-09)