Advisors with SRI-oriented clients end up holding tobacco stocks.
Fund manager AGF is taking heat from some advisors for a fund merger that has left their socially-invested clients in decidedly non-SRI funds.
AGF recently wound down a couple of funds it acquired when it bought Acuity Investment Management in 2011. The problem, however, two SRI funds, the AGF Social Values Balanced and AGF Social Values Equity, were merged with two “standard" funds, AGF Traditional Income and AGF Global Equity. Now, the clients in the two SRI funds find they have Imperial Tobacco and Phillip Morris as a top ten holding—decidedly non-SRI holdings.
Advisors are steamed.
“Ridiculous" and "short-sighted…The clients I have will flip,” said an advisor quoted in an industry media report. "It's a slap in the face."
AGF claims it told advisors about the shifts. Advisors dispute the claim. Calls to AGF had not been returned by press time. If anyone wants to comment: 416.644.8740 ext. 256.
AGF recently wound down a couple of funds it acquired when it bought Acuity Investment Management in 2011. The problem, however, two SRI funds, the AGF Social Values Balanced and AGF Social Values Equity, were merged with two “standard" funds, AGF Traditional Income and AGF Global Equity. Now, the clients in the two SRI funds find they have Imperial Tobacco and Phillip Morris as a top ten holding—decidedly non-SRI holdings.
Advisors are steamed.
“Ridiculous" and "short-sighted…The clients I have will flip,” said an advisor quoted in an industry media report. "It's a slap in the face."
AGF claims it told advisors about the shifts. Advisors dispute the claim. Calls to AGF had not been returned by press time. If anyone wants to comment: 416.644.8740 ext. 256.
