Based on a new framework, the list of funds that meet responsible investing criteria will be publicly available in the coming weeks
Transparency is an ongoing issue for investors focused on responsible investing (RI), but a new framework aims to improve things.
The Canadian Investment Funds Standards Committee (CIFSC)’s framework has been developed with input from industry stakeholders to help investors identify funds that use an RI approach.
These include funds with an investment mandate included in their prospectus relating to a responsible approach, those with a separate document compliant with CFA Institute’s Global ESG Disclosure Standards for Investment Products, or other widely accepted standards.
For non-prospectus funds, CIFSC will consider other documentation.
“This framework is a huge step in helping Canadian investors find products that suit non-financial investment preferences. Moreover, having an identification framework recognized across the Canadian landscape will allow for easier comparability,” said CIFSC Chair Ian Tam.
Adding clarity
The framework is intended to complement the CSA’s recent guidance on ESG fund disclosures, as well as the CFA Institute’s Global ESG Disclosure Standards for Investment Products, rather than add complexity for investors and their advisors.
“As responsible investing quickly evolves, it is vitally important that investors understand the concept spans far beyond just excluding certain sectors or industries in a portfolio. This framework, which defines six non-mutually exclusive approaches, will add clarity for investors who wish to invest in a responsible manner.”
A new list of funds that meet the criteria of the framework will be published publicly in the coming weeks and will be integrated into major Canadian research databases.
