Asset-management firm sees RI leadership as key to breaking into Canada's top 10 manager list by 2024
Desjardins Global Asset Management (DGAM) is charting a bold course for growth over the next few years as it aims to be among Canada’s top 10 managers by 2024.
“With asset growth of close to 70% over the past five years, DGAM is at a crossroads,” President and COO Nicolas Richard said in a statement. “As fund manager for Desjardins Group entities … we have been able to contribute to the sound capitalization of pension plans and meet liability matching needs while implementing innovative responsible investment strategies and expanding our range of Exchange Traded Funds.”
As impressive as that achievement is, the firm is setting its sights even higher. With his 80-strong team that includes 45 investment professionals, Richard said DGAM is aiming to grow its AUM from $76.3 billion as of September 30, 2020 to $100 billion by 2024. Its current portfolio of managed assets includes $62.7 billion in fixed income, $9.3 billion in equities, $3.5 billion in real estate, and $0.8 billion in infrastructure.
In pursuit of its $100-billion goal, the asset manager is offering its services to a wider range of institutional investors across Canada including pension plans, foundations, life and health insurance and property and casualty insurance firms, investment funds, private companies, trust companies and public bodies.
“DGAM’s Canada-wide growth plan will rely on its position as a leader in responsible investment (RI),” Richard said. More institutions than ever are looking to integrate ESG into the management of their investments, creating a market need that DGAM can help fill with its professed expertise in shareholder engagement, research in ESG criteria, and RI best practices.
Since launching its first RI strategy in 2013, DGAM has expanded its shelf to include 11 RI solutions. Last year, DGAM engaged with 127 companies, urging them to adopt best practices to fight and adapt to climate change, protect human rights, and increase diversity in their boards. By the end of 2020, it also aims to reduce the carbon footprint of Desjardins groups own investments so that it’s 25% lower than traditional benchmarks.
Outside its specialization in RI, DGAM offers investing expertise in fixed income, Canadian equity, strategic asset allocation, tactical asset allocation, real estate, and quantitative research and management.
“DGAM is recognized for the depth, complementarity and diversity of our portfolio managers' and analysts' skillsets,” Richard said. “The fact that we are thorough and able to innovate and adapt based on changes in the economic environment is also a key factor that gains the trust of institutional investors.”
