Your Guide to Socially Responsible Mutual Funds in Canada
TABLE OF CONTENTS Introduction.. 3 SRI Mutual Funds in Canada Quick-Reference Table.... 4 Acuity/AGF Funds.... 8 Desjardins Funds.. 10 Ethical Funds... 12 FONDAction CSN.. 14 GLC Asset Mangement Group... 16 IA Clarington Investments... 17 Investors Group. 18 Meritas SRI Funds... 20 RBC Global Asset Management.. 21 Page 2
Introduction The Social Investment Organization (SIO) is pleased to present the 2013 socially responsible investment (SRI) mutual fund guide. This guide was compiled in response to requests for information on SRI mutual funds by investment advisors and investors. All of the firms listed in this document are Sustaining or Associate Members of the SIO. As Canada s national association for socially responsible investment, the SIO raises public awareness of SRI, educates the financial community and the public about SRI and takes a leading role in furthering the use of SRI. As leading members of the SIO, the firms listed in this guide have a strong interest in the principles of socially responsible investment and have made a significant commitment to the development of SRI in Canada. SIO members believe that socially responsible investment represents a useful tool to enhance returns and reduce risk by incorporating social and environmental factors. It is also a catalyst for positive social change. Questions? An electronic version of this report can be downloaded at www.socialinvestment.ca If you have any questions or require further information on any of the firms included in this Guide, contact information is included with each company listing. Sarah Thomson Associate Director Communications, Membership & Advisor Services Telephone: +1 (416) 461-6042 x. 113 thomson@socialinvestment.ca Page 3
1 Socially Responsible Mutual Funds in Canada Quick Reference Table SRI Strategies Complementary Strategies Additional information on page(s) Provinces / Territories available Other Initiatives Public Policy Impact Investing 7 Thematic Investing 6 Shareholder Engagement 5 ESG Integration 4 Exclusionary Screening 3 Positive/ Best of Sector ESG Screening 2 See footnotes on page 1 for important information about the appropriate use of this table and definitions. 1 1 The fund companies listed in this chart are members of the Social Investment Organization, www.socialinvestment.ca. A checkmark under a specific screen may apply to one or more of the SRI funds offered by the company. Important: This table has been created by the Social Investment Organization to serve as a reference and educational tool for financial advisors. The table provides information at the macro level, and suitable investment decisions cannot be made based on the information in this table alone. 2 Funds using positive / best of sector screening seek out leading environmental social governance (ESG) companies within each sector in areas such as environmental protection, climate change, alternative energy, human rights, employee relations, aboriginal relations, executive compensation. 3 Funds using exclusionary screening exclude investments based on pre determined ESG criteria. This can involve the screening out of shares in companies involved in controversial activities (e.g. weapons manufacturing or tobacco), the screening out of entire sectors, or the screening out of poor performing companies. ESG integration is the consideration of environmental social governance (ESG) factors in the investment decision making process. It is different from screening in that it combines ESG data, research and analysis together with financial and other factors in making investment decisions. 4 Shareholder engagement influences corporate behaviour through various strategies including communicating with senior management and/or boards of directors, filing shareholder proposals, and proxy voting. 5 Thematic funds are investments that address specific sustainability issues or themes (such as climate change, food, water, etc.). Investments are directed to companies or industries that offer innovative solutions to existing problems or otherwise enhance sustainability practices. 6 Impact investing refers to targeted investments, typically made in private markets and aimed at solving social or environmental problems. Impact investing includes community investing, where capital is specifically directed to traditionally underserved individuals or communities, to businesses with a clear social or environmental purpose, or to revenue generating non profits. 7 Page 4
Socially Responsible Mutual Funds in Canada Quick Reference Table See footnotes on page 1 for important information about the appropriate use of this table and definitions. 1 SRI Strategies Complementary Strategies 2 Positive/ Best of Sector ESG Screening 2 Exclusionary Screening 3 ESG Integration 4 Shareholder Engagement 5 Thematic Investing 6 Impact Investing 7 Public Policy Other Initiatives Provinces / Territories available Additional information on page(s) AGF offers sustainable investment solutions managed by Acuity Investment Management Inc. Acuity pioneered the concept of sustainable development investing in Canada when in 1991 it launched the Clean Environment Strategy (now called AGF Clean Environment Fund). The Fund is thematic, investing globally in clean technology and resource based environmental innovation. Since 2000, we have offered our Social Values funds (AGF Social Values Balanced Fund and AGF Social Values Equity Fund), which combine detailed financial analysis with environmental, social and governance (ESG) research. We believe that because ESG factors can have a material impact on a firm's operations, sustainability, profitability and valuation, ESG analysis allows us to better identify the long term risks and opportunities for a company. By disclosing ESG practices and defining ESG strategy, a company demonstrates transparency, awareness of risk, strategic forward thinking and strong management qualities we believe to be important when considering potential investment in a company. Acuity / AGF Funds *Our ESG integration involves the work of external environmental experts. For more details: http://www.fondsdesjardins.com/en/investissement/groupe consultatif.jsp * Desjardins Funds collaborations include: Principles for Responsible Investment (PRI) Boreal Leadership Council Academic Research Education All 8 Desjardins Funds All 10 Page 5
3 Socially Responsible Mutual Funds in Canada Quick Reference Table SRI Strategies Complementary Strategies Additional information on page(s) Provinces / Territories available Other Initiatives Public Policy Impact Investing 7 Thematic Investing 6 Shareholder Engagement 5 ESG Integration 4 Exclusionary Screening 3 Positive/ Best of Sector ESG Screening 2 See footnotes on page 1 for important information about the appropriate use of this table and definitions. 1 Ethical Funds / NEI Investments All 12 Ethical Funds seeks to build investment value while reflecting stakeholder values. Our proprietary ESG evaluation methodology assesses the performance of each company in which we invest against a sectorspecific set of environmental, social and governance expectations. Our comprehensive corporate engagement program incorporates in depth dialogue with around 50 companies annually, in house proxy voting, feedback on key votes and providing input on sustainability initiatives for leading companies and industry associations. Our public policy activities seek to promote sector and economy wide change. We are committed to transparency and strive to provide industry leading disclosure on our engagement activities. Fondaction est un fonds de travailleurs qui agit à titre de fonds de capital de développement généraliste. Il accompagne les PME québécoises ainsi que plusieurs fonds partenaires et spécialisés dans leurs projets. Fondaction CSN Québec 14 Il accorde une importance particulière aux entreprises inscrites dans un processus de gestion participative, aux entreprises autocontrôlées (coopératives ou autres) et à celles prenant en compte les enjeux liés au développement durable. Le Fonds vise une plus grandre responsabilité sociétale des entreprises dans tous les projets auxquels il participe, qu ils soient financiers ou autres. Fondaction est signataire des PRI, du Pacte mondial, du Carbon Disclosure Project en plus de produire des rapports de développement durable GRI depuis 2006. GLC Asset Management Group GLC Asset Management partners with Sustainalytics TM, a global leader in ESG screening. All 16 Page 6
Socially Responsible Mutual Funds in Canada Quick Reference Table SRI Strategies Complementary Strategies See footnotes on page 1 for important information about the appropriate use of this table and definitions. 1 4 Positive/ Best of Sector ESG Screening 2 Exclusionary Screening 3 ESG Integration 4 Shareholder Engagement 5 Thematic Investing 6 Impact Investing 7 Public Policy Other Initiatives Provinces / Territories available Additional information on page(s) The fund investment process fully incorporates financial and ESG analysis to construct and manage the portfolio. The fund is populated with companies that are leaders in progressive practices with an aim to provide superior returns through an extra level of risk mitigation and added alpha. When new ESG risks arise, the managers assess the fund s exposure and initiate an analysis of each company s approach to the risk to determine whether further action is required. Further action may include ongoing monitoring of the company s risk management approach, filinga shareholder resolution or divestment. All 17 IA Clarington Investments Meritas SRI Fund is an Observing member of the Canadian Coalition for Good Governance, a Signatory of the UNPRI, and a Sustaining member of the SIO. We believe in the value of selecting and monitoring professional external sub advisors. We also have access to industry leading ESG analysis which we use to ensure that our portfolios own the best companies within each industry. We actively use our proxy votes to provide feedback to the companies we own and are actively engaged in dialogue throughout the year with around 20 25 companies each quarter. The results of these conversations are reported through emails and on our website at the end of each quarter to keep investors and advisors fully informed. All 20 Meritas SRI Funds RBC Global Asset Management partners with Sustainalytics TM, a global leader in ESG screening to deliver the PH&N Community Values Funds and RBC Jantzi Funds. All 21 RBC Global Asset Management / Phillips, Hager & North Investment Management Page 7
F IRM PROFILE AGF offers sustainable investment solutions managed by Acuity Investment Management Inc.* As a pioneer in this field, Acuity has assessed the market value implications of environmental issues since 1991 within its AGF Clean Environment Fund**. The Social Values funds, launched in 2000, enable investors to apply wider social criteria to the investment decision-making process. Acuity is distinguished by the unique makeup of its portfolio management team, who apply not only business, but also scientific and technical backgrounds to the security-selection process. Armed with their expertise in the engineering, medical, geological and environmental fields, the team conducts in-depth bottom-up security analysis, creating portfolios that are financially strong as well as socially and environmentally sound. Enhancing the skills of our team is the Acuity Scientific Advisory Council, comprised of prominent multinational environment and business professionals that provide periodic assessments of global trends. In addition to offering management expertise in SRI strategies, Acuity has taken a leading role in promoting the importance of sustainable and socially responsible investing within Canada and around the world. Acuity is the only Canadian company to participate as a member of the United Nations Environment Programme Finance Initiative Asset Management Working Group. The group publishes research reports that highlight the environmental and social impact of companies in a range of sectors. I NVESTMENT PHILOSOPHY Acuity's investment philosophy is consistent across all asset classes: we purchase reasonably valued securities to hold over the mid to longer-term for capital appreciation. Equities are held for their upside potential while bonds stabilize portfolio returns and deliver a secure and consistent income stream. Equities Acuity applies a disciplined, conservative approach to identifying reasonably valued growth companies that can be held for the mid to long term. Our investment strategy emphasizes companies with viable business models derived from sustainable competitive advantages. The scientific and technical expertise of our portfolio managers enables us to probe companies to determine whether a company truly possesses such advantages. To assist in identifying attractively valued securities and determining appropriate purchase prices, we perform a rigorous financial analysis to identify companies with robust fundamentals. Fixed Income & Money Market Historically, Acuity has avoided over-exposing fixed-income assets to market risk. Our strategy emphasizes quality while focusing on managing term and duration relative to the Universe Bond Index benchmark. Our fixed-income style is best described as a managed duration/yield spread trading approach, which is designed to produce consistent and predictable income while minimizing risk. Bond portfolios are constructed around a core of high-quality Government of Canada issues with short-, mid- and longer-term maturities, averaging to within ± 0.5 years around the benchmark duration. The remaining holdings tend to provincial and high-quality corporate names with superior yield characteristics. Page 8
SRI PRODUCTS AND S ERVICES AGF offers clients traditional SRI strategies via our Social Values funds, AGF Social Values Equity Fund and AGF Social Values Balanced Fund, as well as an environmentally focussed strategy via AGF Clean Environment Equity fund. The AGF Clean Environment Equity Fund is a thematic fund, focussing on four key themes: energy and power solutions, water and waste water solutions, waste management and pollution control, and environment health and safety. Acuity applies wider social criteria through its Social Values strategies. Investment solutions are also offered for institutional investors of varying investment horizons, risk tolerances and return objectives. In support of the principle of social sustainability, Acuity Social Values funds aim to invest in companies that develop and sell products that on balance are beneficial for their users and society. Companies that derive a significant portion of their revenues from products with adverse health impacts, such as weapons, nuclear power, tobacco, alcohol, and gambling are excluded. A number of other important social factors are considered during the investment process. For example, Acuity favours companies with strong records of performance relative to their peers in: Environmental factors Human rights Labour practices Community and aboriginal relations Corporate governance Animal welfare I NQUIRIES https://www.agf.com/static/en/products_services/47628.html *Effective March 1, 2012, Acuity Funds Ltd. amalgamated with its affiliate AGF Investments Inc. The amalgamated entity, AGF Investments Inc., continues as the investment fund manager of the funds while Acuity Investment Management Inc. remains as the Portfolio Manager. ** AGF Clean Environment Equity Fund was renamed from Acuity Clean Environment Equity Fund, effective April 19, 2012. On August 7, 2007, the Fund changed its investment objective to permit greater foreign-property investments. On August 27, 2007, Acuity Clean Environment Global Equity Fund merged into Acuity Clean Environment Equity Fund On April 10, 2012, unitholders approved a change in the investment objective providing the Fund with greater flexibility to invest in a globally diversified portfolio of equity securities that fit the Fund's concept of social values. AGF Social Values Equity Fund was renamed from Acuity Social Values Canadian Equity Fund, effective April 19, 2012. Acuity Social Values Global Equity Fund merged into AGF Social Values Equity Fund on May 25, 2012. AGF Social Values Balanced Fund was renamed from Acuity Social Values Balanced Fund, effective April 19, 2012. Alpha Social Values Portfolio merged into AGF Social Values Balanced Fund on May 25, 2012. On August 7, 2007, the Fund changed its investment objective to permit more expansive socially responsible investments Page 9
D ESCRIPTION DE LA SOCIÉ TÉ Fort de ses 5,6 millions de membres et de ses actifs de 194 milliards de dollars, le Mouvement des caisses Desjardins personnifie la réussite la plus frappante en matière de coopération au Québec, au Canada et en Amérique du Nord. Grâce à son réseau de caisses et à sa gamme complète de services financiers, Desjardins démontre chaque jour l utilité, la pertinence et le succès des valeurs coopératives, ainsi que leur contribution au bien-être économique et social de l ensemble de la collectivité. PRODUITS ET SERVICES ISR En offrant le Fonds Desjardins Environnement dès septembre 1990, Fonds Desjardins, administré par le Mouvement des caisses Desjardins, est devenu un pionnier du marché canadien de l investissement socialement responsable. Les objectifs de l ISR concordent parfaitement avec les valeurs et les principes de coopération du Mouvement des caisses Desjardins, qui comprennent la responsabilité sociale et un engagement envers le développement durable. Desjardins a, par la suite, réaffirmé cet engagement en se dotant de sa propre politique de développement durable en 2005. En janvier 2009, Fonds Desjardins a annoncé la création des portefeuilles d investissement socialement responsables SociéTerre. Ces portefeuilles, qui ont été ajoutés à la gamme étendue de Fonds Desjardins, sont les premiers portefeuilles socialement responsables structurés de façon à répondre aux besoins spécifiques des différents profils d investisseur. Les portefeuilles SociéTerre ont été conçus en partenariat avec les Fonds Éthiques, le chef de file au Canada en matière d investissement socialement responsable (ISR). Desjardins détient une part de 50 % dans les Fonds Éthiques par l entremise de sa filiale Placements NEI. Ces portefeuilles sont composés du Fonds Desjardins Environnement et d un choix de sept Fonds Éthiques. Les quatre portefeuilles SociéTerre sont : SociéTerre Sécuritaire boursier; SociéTerre Équilibré; SociéTerre Croissance; et SociéTerre Croissance plus. Ces portefeuilles, qui ne comportent aucuns frais d achat, sont disponibles aux membres et aux clients de Desjardins par l entremise du réseau de caisses et de succursales Desjardins partout au Québec et en Ontario. Voici les stratégies ISR utilisées par Fonds : 1- Filtres 2- Évaluation des 3- Actionnariat engagé 4- Collaboration d'exclusion entreprises - Armement - Tabac - Nucléaire - Environnement - Société - Gouvernance - Dialogue - Proposition d'actionnaire - Exercice du droit de vote - Association canadienne pour l'investissement responsable - Principes pour l'investissement responsable (ONU) - Conseil principal de la forêt boréale - Projet de recherche universitaire Pour les résultats, voir le bulletin Un monde en action disponible sur le site fondsdesjardins.com. Q UESTIONS isr@desjardins.com Page 10
F IRM PROFILE With its 5.6 million members and $194 billion in assets, the Desjardins Group personifies the most striking success of cooperation in Québec, indeed throughout Canada and North America. Every day, Desjardins, thanks to its network of caisses and its complete range of financial services, proves the usefulness, relevance and success of cooperative values, as well as their contribution to the economic and social well-being of the community. SRI PRODUCTS AND S ERVICES With its Desjardins Environment Fund, created in September 1990, Desjardins Funds, administered by the Desjardins Group, became a pioneer in the Canadian socially responsible investment market. SRI goals are a natural match for Desjardins Group s cooperative values and principles, which include social responsibility and a commitment to sustainable development. Furthermore, Desjardins reaffirmed this commitment through the adoption of its own sustainable development policy in 2005. In January 2009, Desjardins Funds announced the creation of SocieTerra socially responsible investment portfolios. These portfolios, which have been added to Desjardins Funds product offering, are the first socially responsible funds structured to meet the specific needs of various investor profiles. The SocieTerra portfolios were developed in partnership with Ethical Funds, Canada s leader in socially responsible investing (SRI). Desjardins holds a 50% ownership stake in Ethical Funds through its subsidiary NEI Investments. These portfolios comprise the Desjardins Environment Fund and a selection of seven Ethical Funds. The four SocieTerra portfolios are: SocieTerra Secure Market; SocieTerra Balanced; SocieTerra Growth; and SocieTerra Growth Plus. These portfolios, which have no front-end load fees, are available to Desjardins members and clients through the Desjardins caisse/branch network across Quebec and Ontario. Here are the SRI strategies used by Desjardins Funds: 1- Exclusion screening - Arms industry - Tobacco industry - Nuclear industry 2- Inclusion screening - Environmental practices - Social practices - Governance practices 3- Shareholder 4- Collaboration engagement - Dialogue - Shareholder resolutions - Proxy voting guidelines Please see the quarterly bulletin Investing in our world available on the web site desjardinsfunds.com.. - Canadian Association for Socially Responsible Investment - UN Principles for Responsible Investment - Canadian Boreal Initiative - University research project I NQUIRIES sri@desjardins.com Page 11
F IRM PROFILE Ethical Funds is Canada s leading socially responsible mutual fund for more than 25 years, and has been helping investors make money and make a difference. We have the largest inhouse team of socially responsible investment specialist of any mutual fund company in the country. This team delivers comprehensive Environmental, Social and Governance (ESG) services to the managers of socially responsible investments. At Ethical Funds we not only evaluate all our holdings to ensure they meet our baseline ESG expectation for their sector we actively engage many of the companies we own in our funds, encouraging them to adopt more sustainable behavior and lead the way for other corporations. Ethical Funds is owned by NEI Investments (NEI). NEI Investments is a mutual fund company that makes excellent, independent portfolio managers accessible to Canadian retail investors through two award-winning fund families: Northwest Funds and Ethical Funds. NEI is a fully Canadian company, owned by Desjardins Group and the Canadian Provincial Credit Union Centrals. This strategic partnership has created a national investment firm with assets under management of over $4.8 billion. SRI S TRATEGIES Ethical Funds approach to socially responsible investing incorporates a proprietary evaluation process and proactive corporate engagement to encourage companies held in our clients portfolios to adopt positive and sustainable environmental, social and governance practices that make them not only better corporate citizens but also more attractive long term investments. Ethical Funds multi-faceted process promotes environmental, social and governance change through the following strategies: Evaluation: Ethical Fund uses a proprietary ESG Evaluation methodology to assess the environmental, social and governance performance of each company in which we invest. Engagement: Ethical Funds has the most proactive and comprehensive Corporate Engagement program in Canada. Through dialogue, companies are encouraged to improve their environmental, social and governance performance. As shareholders, we communicate our concerns directly to company management and directors, sometimes in coalition with other concerned groups. Ongoing engagement provides solutions, encouraging corporate leaders to break new ground and corporate laggards to catch up. Page 12
Research: We regularly conduct primary research on emerging issues and risks faced by investors in industry sectors. This research enables us to establish the most appropriate and valid dimensions on which to evaluate companies within those sectors. Public Policy & Standards: Public policies and standards affect the rules by which all companies must operate. Our efforts in this area enable us to promote change on a broader scale, beyond individual companies, to remove barriers to sustainability disclosure and performance on an industry-wide basis. SRI PRODUCTS Ethical Funds offers the most comprehensive family of socially responsible investment funds in Canada, covering a broad spectrum of investment styles, asset classes and risk-return profiles. Also our full suite of Ethical Select Portfolios can help you customize your clients investments based on short-term goals like regular monthly distributions or long-term goals like retirement. It s all designed so you can help your clients choose the socially responsible investment options that are right for them. I NQUIRIES Ethical Funds 1.888.809.3333 NEIinvestments.com Page 13
PROFILE Créé par une loi de l Assemblée nationale du Québec en juin 1995, Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l emploi, est un fonds de travailleurs combinant les avantages fiscaux des régimes enregistrés d épargne retraite aux crédits d impôt d un fonds d investissement voué au maintien et à la création d emplois. Il s agit d épargne investie à long terme en vue de la retraite et bénéficiant d avantages fiscaux importants pour les travailleuses et les travailleurs québécois. L organisation du travail, l épargne et l emploi font partie des enjeux auxquels la CSN s est toujours intéressée. Le rapport de la CSN avec Fondaction en est un de partenariat et de proximité et non d affiliation, de contrôle ou de propriété. Bien que les règles de transparence et de divulgation constituant la base des lois en valeurs mobilières exigent la publication de rapports financiers, Fondaction va plus loin. Fondaction a produit son premier rapport de développement durable en 2006 à l occasion de son 10 e anniversaire. En choisissant un rythme de parution biennal, ce quatrième rapport continue de rendre compte de sa performance en développement durable et de sa saine gouvernance. Leader en la matière, Fondaction a une fois de plus demandé un examen du rapport de développement durable 2010-2012 à un auditeur indépendant ainsi qu'auprès de la GRI, le faisant ainsi passer du niveau A au niveau A+. Au 31 mai 2012, l actif total s élevait à 914,6 M$ et le nombre d actionnaires s élevait à 113 838. PHILOSOPHIE DE PLACEMENT À la mission fondamentale d un fonds de travailleurs de maintenir et de créer des emplois, Fondaction s est aussi donné comme mission spécifique de se rendre plus particulièrement disponible aux entreprises inscrites dans un processus de gestion participative, aux entreprises autocontrôlées ainsi qu aux entreprises soucieuses de l environnement. On retrouve ainsi dans sa loi constitutive la volonté d agir sur la base des trois piliers du développement durable : l économie, le social et l environnement. Avant toutes les autres institutions financières québécoises faisant appel à l épargne du grand public, il s est résolument engagé dans la voie du développement durable. La Loi constituant Fondaction prévoit qu à chaque exercice financier, les investissements admissibles doivent représenter, en moyenne, au moins 60 % de l actif net moyen du Fonds pour l exercice précédent. Les investissements à impact économique québécois (ou capital de développement) sont composés de participations directes dans des entreprises, de participations dans des fonds partenaires ou spécialisés ainsi que d un portefeuille boursier diversifié constitué de titres d entreprises québécoises à petite capitalisation. Les sommes qui ne sont pas investies dans des entreprises admissibles à la norme de 60 % sont placées sur les marchés financiers avec l objectif de créer une base de revenus stables pour le Fonds et d'en diversifier l actif d une façon qui protège le capital détenu par les actionnaires. Le portefeuille des autres investissements demeure majoritairement composé d obligations et autres titres à revenu fixe. Page 14
PRODUITS ET SERVICES ISR Les épargnants qui investissent dans Fondaction bénéficient d un crédit d impôt de 40 %, en plus de profiter des réductions pour contribution à un REER. Fondaction est disponible par déduction à la source dans plus de 2 200 lieux de travail. Dans le but de développer les aptitudes à la gestion des travailleurs et favoriser leur implication active, Fondaction a créé Neuvaction en 2000, afin d offrir des services de formation et des services-conseils en développement organisationnel et en développement durable. Filaction, un fonds de développement spécialisé en économie sociale et solidaire, a aussi été créé par Fondaction en 2001 dans le but d atteindre des objectifs de développement économique et social. Les engagements externes de Fondaction reflètent l importance que l institution accorde à la finance socialement responsable et au développement durable. Le Fonds considère qu il est de sa responsabilité sociétale de participer activement aux travaux de diverses organisations œuvrant dans des domaines qui sont en lien avec sa mission, tels que l économie sociale et solidaire, le développement économique, la recherche et le développement durable. Q UESTIONS Mme Claude Normandin Telephone: +1 (514) 525-6500 ou +1 (800) 253-6665 Facsimile: +1 (514) 525-0863 claude.normandin@fondaction.com FONDAction CSN 2175 boul. De Maisonneuve Est Bureau 103 Montréal, PQ H2K 4S3 www.fondaction.com Page 15
F IRM PROFILE We are a leading investment manager in Canada. We manage $32 billion in assets* for Canadian investors from our offices in Toronto and London, Ontario, and Winnipeg, Manitoba. A broad range of investment mandates in traditional and specialty asset classes, as well as major investment styles, are offered through our distinct investment management divisions: GWL Investment Management (GWLIM) London Capital Management Laketon Investment Management Portico Investment Management Our clients include some of the largest corporations, pension plans and endowments in the country, as well as families and business owners. Our focus is on providing our clients with superior, long-term investment performance. *September 30, 2012 I NVESTMENT PHILOSOPHY GWLIM is responsible for the investment management of pooled segregated funds and separately managed portfolios and providing investment counselling services for our clients. GWLIM is a top-down, growth-oriented, all-cap manager. In combination with comprehensive analysis of broad economic trends, the GWLIM investment team blends top-down views with stock-level fundamental and technical analysis to seek out attractive growth investments. Here's how we do it: Top-down analysis: drives our asset allocation and sector weight positioning. We evaluate macro-economic factors, both current and long-term, to identify the sectors and subsectors of the market with the greatest risk/reward opportunity. We factor in current economic and market considerations to highlight positive trending sectors and stocks, and to assess the risk/reward trade-off within each sector, and within the portfolio as a whole. Fundamental stock analysis: drives our stock selection and weights. The flexibility of companies to adapt to changing economic conditions means a company's fundamentals are crucial to the portfolio manager's conviction in the stock. We look for: Strong earnings driven by revenue growth Superior management quality, experience, key personnel departures, etc. Competitive advantage in products and/or services Improving relative strength (i.e. breaking out of the pack) Attractive valuation in relation to future earnings opportunity Portfolio construction: brings all the analysis together to ensure appropriate levels of diversification to mitigate risk within the portfolio. SRI PRODUCTS AND S ERVICES http://www.greatwestlife.com/001/home/index.htm http://www.glc-amgroup.com/02-03_socially_responsible_investing.html Rick Lewis, Vice-President, Institutional Investment Counselling Telephone: +1 (204) 946-7386 Facsimile: +1 (204) 946-8818 Rick.Lewis@glc-amgroup.com GLC Asset Management Group Ltd. 100 Osborne Street North Winnipeg, MB R3C 3A5 Page 16
F IRM PROFILE IA Clarington is a wealth management firm dedicated to providing exceptional investment solutions that meet a variety of needs. We hire leading portfolio managers from across Canada and around the world to manage a diverse range of investment products, including the IA Clarington Funds, the IA Clarington Target Click Funds and the IA Clarington Inhance family of SRI Funds. We also market the IA Clarington Guaranteed Investment Funds. The IA Clarington Inhance Family of SRI Funds is sub-advised by the portfolio management team of Vancity Investment Management Ltd. (VCIM). I NVESTMENT PHILOSOPHY The aim of the IA Clarington Inhance Funds is to create wealth for Canadian investors through Return on Responsibility TM by balancing the interest of customers, employees, shareholders and community. The management process rigorously incorporates environmental, social and governance (ESG) criteria with in-depth financial analysis and active portfolio management. I NVESTMENT PROCESS VCIM s investment process involves looking for companies that can provide superior returns through an extra level of risk mitigation and added alpha while seeking to improve the world. On the financial side, they review companies for the strength of their business model, profitability and valuation as well as the nature and competitiveness of the industry and their relative position. From an ESG perspective, they identify and measure each company based on employee relations, diversity, environmental commitments, community relations, corporate governance and citizenship, human rights and sustainable products to assess how the organization is prepared and able to operate successfully in a world of evolving environmental and corporate regulations, increased social expectations and changing shareholder demands. They seek out companies who are prepared to meet changing conditions and position themselves for longterm success. The IA Clarington Inhance family of funds offers a broad range of investment benefits and they are 100% RRSP-eligible too. So whatever your financial goals, we are confident you will find something that fits both your investment style and your values. IA Clarington Inhance Monthly Income SRI Fund IA Clarington Inhance Canadian Equity SRI Class IA Clarington Inhance Global Equity SRI Class IA Clarington Inhance Conservative SRI Portfolio IA Clarington Inhance Balanced SRI Portfolio IA Clarington Inhance Growth SRI Portfolio I NQUIRIES www.iaclarington.com Page 17
F IRM PROFILE Investors Group Inc. is a Canadian leader in providing personal financial planning services, and is dedicated to building lasting client relationships. Our primary objective is to help Canadians plan for financial security by providing quality financial planning advice and products through a network of Consultants. Investors Group offers financial planning, a unique family of mutual funds and a comprehensive range of other investment products and financial services, including Registered Retirement Savings Plans, Registered Retirement Income Funds, Deferred Profit Sharing plans, life and disability insurance, Guaranteed Investment Certificates and mortgages. Today, Investors Group serves over one million clients through our dedicated Consultant Network and staff team, working out of hundreds of Financial Planning Centres across Canada. Investors Group Inc. is a member of the IGM Financial Inc. group of companies. The shares of IGM Financial Inc. are listed on The Toronto Stock Exchange. The stock exchange symbol is IGM. SRI PRODUCTS AND S ERVICES At Investors Group we take great pride in our longstanding tradition of caring for the communities where we live and work. Investors Group is a founding member of Imagine Canada s Caring Company Program; an organization of like-minded corporations committed to making a difference. Through this commitment, we contribute nationally and at the local grass roots level to organizations focused on social and environmental issues that are important to many Canadians. At Investors Group, we believe you can invest for both performance and social good at the same time. We were one of the first major Canadian financial institutions to offer a mutual fund that that featured heightened social ideals with the launch of Investors Summa SRI Fund in 1987. Over more than twenty years, Investors Summa SRI Fund has become the largest socially responsible fund in Canada. SRI is a broad approach to investing that my incorporate factors related to environmental sustainability, social responsibility or various social issues with traditional investment analysis. This approach to investing provides solid investment choices designed to fit both your financial goals and personal values. We offer two SRI funds focused on companies that have adopted progressive standards and practices towards the environment, human rights, and/or other social issues and an environmental fund focused on companies who are environmental leaders in their industries. Investing in these types of funds provides you with the comfort of knowing that you are investing in companies that meet certain stringent socially responsible investment criteria. Page 18
I NQUIRIES Aaron Margolis, Assistant Vice-President, Product Management Telephone: (204) 956-8744 Aaron.margolis@investorsgroup.com Investors Group 447 Portage Avenue Winnipeg, Manitoba R3C 3B6 www.investorsgroup.com Jon Kilfoyle, Manager, Product & Service Development Telephone: (204) 956-8817 Jon.kilfoyle@investorsgroup.com Pierre Lacroix, Associate Manager, Product Development Telephone: (204) 956-8527 Pierre.lacroix@investorsgroup.com Ryan McGregor, Assistant Manager, Product Management Telephone: (204) 956-8379 ryan.mcgregor@investorsgroup.com Page 19
F IRM PROFILE Meritas SRI Funds is one of Canada's leading providers of socially responsible investing ('SRI') solutions for individuals, corporations, endowments, foundations, pension plans and other large investors. SRI is the process of making investment decisions in pursuit of social and environmental returns in addition to seeking financial returns. We achieve this by being committed to all three pillars of SRI: Positive and Negative Screening, Shareholder Advocacy, and Community Development Investments (CDI) In fact, Meritas is the only SRI manager in Canada to employ CDI as a key part of its process. For over 10 years Meritas has been dedicated to building SRI for individual and institutional investors. We have a passion for the impact that can be achieved when SRI is executed with a commitment to influence positive change. In 2010 Meritas Financial Inc. and Qtrade Fund Management Inc. merged to form OceanRock Investments Inc. This collaboration enabled Meritas to broaden our mission, vision and values and to play a more dynamic role in our investors' SRI goals. I NVESTMENT PHILOSOPHY The managers invest in companies that offer a blend of value and growth opportunities. The standards Meritas uses to evaluate potential investments aim to identify companies that: Respect the dignity and value of all people Build a world at peace and free of violence Internalize a concern for justice in a global society Exhibit responsible management practices Support and involve communities Practice environmental stewardship I NQUIRIES For more information about OceanRock please contact us directly at: TF 1.866.924.6767 E info@oceanrock.ca To learn more: http://www.qtrade.ca/oceanrock/aboutus/about_meritas.jsp Page 20