By Doug Ransom, B.Eng., CIM®, CFP®, and Lionel Johnson
Last Updated: 2020-01-16
Responsible investing can contribute to a positive social and environmental impact. Also, many investors wish to avoid earning income from companies whose corporate behavior or source of income they find objectionable.
The benefits of our responsible growth strategies include:
• A tactical allocation to regions where equities are performing the best.
To avoid large losses, the strategy will shift allocation to bonds or cash in times when equities are underperforming.
• Avoiding investments many investors would find objectionable through Environmental, Social,
and Governance (ESG) screening criteria.
• Eliminating companies focussed on fossil fuels for energy purposes, as society transitions away from these fuels.
• Including companies that are benefiting from trends in reducing environmental harm.
• Low fees relative to mutual funds.
We offer two growth strategies for responsible investors. Responsible Tactical Growth for most investors; and Responsible Aggressive Growth for bold investors.
Responsible Tactical Growth
Current Holdings
Most of the investments in this strategy are selected with our tactical investment processes. Our tactical strategy selects the top performers from several investments, based on a dual-momentum strategy. You can read more about this strategy in the book “Dual Momentum Investing: An Innovative Strategy for Higher Returns with Lower Risk”, by Gary Antonacci. The holdings are outlined in Table 1 Responsible
Tactical Growth: Current Holdings.
Table 1 Responsible Tactical Growth: Current Holdings
| Holding | Investment Methodology | Symbol & Link | Current Weight | Fund Management Fee & Comments |
| Cash | 1% | |||
| Autocallable Structured Notes linked to Canadian Banks with 20% barrier protection | Buy and Hold | 9% | 0%. CIC is an alternative CIC has a management fee of 0.65% | |
| Ninepoint International Small Cap Fund | Buy and Hold | NPP371 | 5% | 1.5% This is a specialty mandate we feel adds a lot of value and is worth the management fee |
| CI First Asset MSCI World ESG Impact ETF (Hedged to Canadian Dollar) | Tactical | CESG | 40% | 0.55% |
| American Equity Funds Desjardins RI -USA Low CO2 Index ETF | Tactical | DRMU | 45% | 0.25% |
Our investment process will occasionally replace the tactical investments in Table 1 Responsible Tactical Growth: Current Holdings with alternate selections from Table 2 Tactical Position Candidates.
Table 2 Tactical Position Candidates
| Holding | Symbol & Link | Constraint | Fund Management Fee |
| CI First Asset High-Interest Savings ETF and/or CI High-Interest Savings Fund | CSAV & CIG4113 | 0.14% | |
| iShares ESG Canadian Short-Term Bond Index ETF | XSTB | 0.18% | |
| American Equity Funds Desjardins RI USA – Low CO2 Index ETF | DMRU | Maximum 45% of portfolio | 0.25% |
| Global and International Equity Funds Desjardins RI Developed ex-USA ex-Canada Multifactor Low CO2 ETF | DRFD | Maximum 45% of portfolio | 0.60% |
| Global and International Equity Funds Desjardins RI Emerging Markets Multifactor – Low CO2 ETF | DRFE | Maximum 20% of portfolio | 0.65% |
| CI First Asset MSCI World ESG Impact ETF (Hedged to Canadian Dollar) | CESG | The portfolio holds 40% of CESG OR CSAV, CIG4113, Or XTSB | 0.55% |
Responsible Aggressive Growth
For our more risk-tolerant investors only. The Responsible Aggressive Growth strategy is a modification of the Responsible Tactical Growth to substitute up to 20% of the Responsible Tactical Growth strategy
holdings with selected special situation investments. The focus is on investments with high potential growth that should benefit from trends in reducing environmental harm.
Take the Next Step
Please contact us at 250.412.3499 or by email doug.ransom@iagto.ca or lionel.johnson@iagto.ca to discus how a Responsible Growth Strategy can help you meet your investment goals.