Canada Life brings ESG to its seg-fund shelf

by Leo Almazora23 Nov 2021

Shortly after RBC Insurance brought sustainable investing to its segregated funds, another firm is making a similar update to its own shelf.

Canada Life is supporting Canadians’ ability to invest responsibly with the launch of three new guaranteed investment fund offerings. Each of the new offerings seeks to invest in companies that demonstrate strong ESG practices.

"Environmental, societal and governance challenges are now more prominent than ever before. Not only are clients caring more about these issues, but they are also recognizing the investment risks posed by sustainability challenges," said Steve Fiorelli, senior vice-president, Wealth Solutions at Canada Life. “These solutions have a focus on identifying, measuring, and managing ESG attributes, which can help clients work towards their financial goals in a socially conscious way."

The new products, which are funds-of-funds that are diversified across asset classes, regions, and responsible investing strategies, include:

  • Canada Life Sustainable Conservative Portfolio – targeting a 70-30 split between fixed income and equities, it seeks to generate a moderate level of income with potential growth of capital over the long term using a responsible investing approach;
  • Canada Life Sustainable Balanced Portfolio – aiming for a 50-50 allocation between fixed income and equities, the fund aims to provide a balance of income and long-term capital growth while using a responsible investing approach; and
  • Canada Life Sustainable Growth Portfolio – Targeting a 20-80 asset mix between fixed income and equities, the fund pursues long-term capital growth with some income using a responsible investing approach.

Each portfolio will be actively managed to take both ESG attributes and risk-return properties into account. They are sub-advised by J.P. Morgan Asset Management (JPMAM), a recognized responsible-investing leader with extensive ESG analysis resources and deep experience in multi-asset investing, and are also available as mutual funds managed by Canada Life Investment Management.

"In the current environment of low interest rates and market uncertainty, clients need investment strategies that allow them to achieve reasonable returns while managing risk," said Hugh Moncrieff, executive vice-president, Advisory Network and Industry Affairs at Canada Life. "Canada Life Sustainable Portfolios help to deliver the benefits of growth potential and better risk management that comes from a globally diversified multi-asset solution, the benefits of a responsible investing focus, and the added layer of security that comes with a segregated fund contract."