CI Investments, one of Canada’s largest investment management companies, recently announced the launch of two products focused on investing in companies committed to positive environmental and societal outcomes: CI First Asset MSCI World ESG Impact ETF and CI MSCI World ESG Impact Fund.
“The Funds represent an important addition to our product shelf as they provide a meaningful way for investors to diversify their portfolios while allocating capital towards some of today’s most pressing global issues,” said Rohit Mehta, president of CI First Asset ETFs and executive vice-president of CI Financial, the parent company of CI.
The ETF has been designed to track the MSCI World ESG Select Impact ex Fossil Fuels Index, which targets large and mid-cap companies in 23 developed countries with a positive impact on environmental, social and governance (ESG) factors. The Fund will its assets in unhedged common units of the ETF.
The combination of ESG prerequisites for investment consideration includes the following:
- Thematic investing: The Funds invest in companies whose products and services comply with key sustainability areas such as green buildings, energy efficiency, pollution prevention and major disease treatment.
- Impact investing: The companies within the Funds are aligned with one or more of the United Nations Sustainable Development Goals, a framework to achieve a better and more sustainable future for all.
- Exclusionary screening – fossil fuels: The Funds will not invest in companies that own fossil fuel reserves used for energy purposes.
“ESG issues are some of the most important drivers of change in the world today,” said Roy Ratnavel, head of sales for CI Investments and executive vice-president of CI Financial. “Companies are increasingly rethinking the ways in which they conduct business, while investors are re-evaluating traditional investment approaches.”
CI an independent, Canadian-owned wealth management firm with $176.1 billion in assets as of August 31, 2019. MSCI is a leading provider of critical decision support tools and services for the global investment community to help improve transparency across the investment process.
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