Solution introduction
Investing responsibly doesn’t have to come at the expense of financial returns
IA Clarington Inhance SRI Funds, managed by SRI pioneers Vancity Investment Management Ltd. (VCIM), can help grow your wealth in a way that aligns with your personal values
VCIM uses a three-pronged approach to investing responsibly:
- Environmental, social and governance (ESG) screening
- Financial analysis
- Shareholder engagement
ESG screening
To identify potential investments for IA Clarington Inhance SRI Funds, VCIM’s portfolio managers assess companies based on seven main ESG criteria:
- Corporate governance
- Environmental leadership
- Employee relations
- Employee diversity
- Community relations
- Human rights practices
- Product sustainability
Importantly, VCIM’s assessment process involves more than just screening out companies that fall short of its ESG criteria. The portfolio managers actively screen in companies that demonstrate a firm commitment to progressive social values and environmental stewardship.
Financial analysis
VCIM’s security selection specialists assess potential candidates for the Funds based on a wide range of fundamental financial metrics, including:
- Free cash flow
- Price-to-earnings ratio
- Earnings growth
- Return on equity
Portfolio managers also assess companies’ business models, competitive advantages and quality of management.
Only securities that satisfy the stringent requirements of both the ESG team and the financial analysis team are eligible for inclusion in IA Clarington Inhance SRI Funds.
