Fossil Fuel Free Investing

Clean Energy BC is introducing Genus Capital to create a Sustainable Investment Program. This service will provide Clean Energy BC members with access to a wide range of sustainable portfolio options to better align your investments with your values.


Who is Genus?

Genus Capital Management Inc. is Canada’s Fossil Free investment leader. Founded in 1989 they are an independent investment management firm based in Vancouver.  Genus is passionate about creating innovative investment solutions that meet their clients’ changing needs in a world that is changing rapidly. With $1.5 billion in assets under management, clients include leading environmental organizations, foundations and individuals across Canada.

Public Clients of Genus Include…

Public Clients

As the world took notice of climate change’s environmental impact, Genus Capital Management clients, such as the David Suzuki Foundation, began to see its impending economic impact, and asked to collaborate on a socially responsible investment portfolio. In 2013 Genus enhanced their socially responsible strategies and created Genus Fossil Free® funds to better align the values of clients with their investments and help address some of the world’s pressing socioeconomic and environmental challenges. Today, Genus Capital is at the forefront of Canada’s Divest-Invest movement with a complete suite of fossil fuel free funds that are tailored to meet the needs of investors who wish to divest from the world’s worst polluters and invest in a sustainable, clean energy future.


Exclusion


To help identify attractive impact investments, Genus uses the United Nations Sustainable Development Goals framework, shown below.

SDG

Genus uses this framework to help define impact investment objectives and deliver reporting.

Signatory to the United Nations’ Principles for Responsible Investment (PRI). The organization’s objective is to help asset owners and managers make better investment decisions through an improved understanding of sustainability.

A Proven Approach

Over the past 30  years, Genus has developed, refined and applied a proprietary investment approach that has been shown to deliver consistent returns. For  every client, Genus follows this same proven strategy to ensure investments offer excellent return potential within a lower risk-controlled portfolio.

Genus looks for great companies to own through a style-diversified approach that seeks out value, growth and quality. This helps eliminate losses caused by emotional mistakes, and includes a range of investment options to help achieve your goals.

Evaluation of 2,000 of the Largest Stocks

Stocks

The Genus Philosophy

Genus takes a global view and an active asset allocation approach which aims to add return and help reduce risk across money market, stock and fixed-income asset classes. Each month Genus uses a data-driven research model, called DynaMix, to assess the relative attractiveness and riskiness of various asset classes, currencies, commodities and geographic regions. Genus then uses this outlook  to tilt portfolios in the right direction based on changing market conditions.

With Canada representing only 5 per cent of world stock markets, Genus believes that having a wide perspective is essential to success. To expand its clients’ portfolios globally, Genus operates a unique approach called “Total Equity.” While many managers prefer regional “baskets” that are blind to each other, Genus’ methodology aims to add returns by ensuring that clients own the leading companies each region has to offer.

For instance, while Canada has some of the top banks and the U.S. is strong in technology, Europe is well-known for its pharmaceuticals. This unique approach offers safety advantages as well. By optimizing holdings of Canadian stocks with those from around the world, Genus is able to find attractive correlations and create sound diversification for less risk.

RRSP

Genus’ Group RRSP program offers a great way to save for your retirement. Highlights of the Genus solution include the following:

  • Genus has a complete suite of Fossil Free® funds, including both income and growth investment options.  These funds exclude all companies directly involved in the extraction, processing and transportation of oil, gas and coal.
  • These funds also avoid companies involved in social and environmental controversies, and they screen out firms with harmful products and services such as weapons and military contracting, gambling, junk food, nuclear, alcohol and tobacco.
  • In terms of positive screens, Genus tilts towards companies with higher Environmental, Social and Governance (ESG) scores gained through things like energy efficiency, community involvement, and work-place diversity.
  • Genus includes an impact investment option, which enables you to invest in a way that helps support positive environmental and social change.  The Genus Fossil Free High Impact Equity fund supports companies with the following themes: alternative energy, renewable energy, sustainable agriculture, access to education, sustainable water, pollution prevention and others.
  • Genus will also engage companies on our behalf to try and improve corporate behavior, such as letter writing and proxy voting.
  • The Genus management fee is lower than a typical retail mutual fund which improves the potential for higher after-fee investment returns.
  • Genus has a solid track record in sustainable investing.
  • Clean Energy BC members will have access to Genus annual employee education sessions.

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customizable

Genus Fossil Free Funds Description

Government Bond Fund

The investment objective of the Government Bond Fund is to preserve capital and to create added value through its fixed income holdings.

To achieve this objective, the Manager primarily invests in Canadian bonds, debentures and other debt instruments. The minimum quality standard for bonds and debentures is a “BBB” credit rating as determined by the Dominion Bond Rating Service or other comparable rating service. It may also include privately placed investments if consistent with the Fund’s overall objective.

The returns of this Fund are derived from interest and capital appreciation on the securities held in this Fund’s portfolio.

This Fund is currently sub-advised and managed by Addenda Capital Inc.

Short-Term Bond Fund

The investment objective of the Short-Term Bond Fund is to preserve capital and to create added value through its fixed income holdings.

To achieve this objective, the Manager primarily invests in fixed income investments with a term to maturity generally not exceeding 5 years and a minimum “BBB” quality credit rating as determined by the Dominion Bond Rating Service or other comparable rating service. It may also include privately placed investments if consistent with the Fund’s overall objective. The Fund’s modified duration may range from 1 to 5 years.

The returns of this Fund are derived from interest and capital appreciation on the securities held in this Fund’s portfolio.

Selection of the Fund’s portfolio is governed by the Manager’s unique and proprietary Fossil Free® mandate, and is restricted to issuers that conduct their affairs in a manner that meets the Manager’s screening criteria in relation to specific Environmental, Social and Governance issues.

This Fund is currently sub-advised and managed by Addenda Capital Inc.

Fossil Free® Corporate Bond Fund

The investment objective of the Fossil Free® Corporate Bond Fund is to preserve capital and to create added value through its fixed income holdings.

To achieve this objective, the Manager primarily invests in Canadian bonds, debentures and other debt instruments. The minimum quality standard for bonds and debentures is a “BBB” credit rating as determined by the Dominion Bond Rating Service or other comparable rating service. It may also include privately placed investments if consistent with the Fund’s overall objective.

The returns of this Fund are derived from interest and capital appreciation on the securities held in this Fund’s portfolio.

Selection of the Fund’s portfolio is governed by the Manager’s unique and proprietary Fossil Free® mandate, and is restricted to issuers that conduct their affairs in a manner that meets the Manager’s screening criteria in relation to specific Environmental, Social and Governance issues.

This Fund is currently sub-advised and managed by Addenda Capital Inc.

Fossil Free® CanGlobe Equity Fund

The investment objective of the Fossil Free® CanGlobe Equity Fund is to achieve maximum income consistent with preservation of capital with the potential for moderate growth.

To achieve this objective, the Manager primarily invests in equity securities of companies included in the S&P/TSX Composite and MSCI World indexes. The primary strategy employed is one of quantitative security selection, holding between 60 and 120 securities that are expected to outperform the target indexes as a whole. The Fund’s portfolio reflects diversification by country, sector and quality. Individual equity investments generally do not exceed 10% on a cost basis. The Fund may also use derivatives such as futures and forward contracts to manage cash flows, beta and currency exposure of the Fund without creating leverage.

The returns of this Fund are derived from dividends and capital appreciation on the securities held in this Fund’s portfolio and currency movements.

Selection of the Fund’s portfolio is governed by the Manager’s unique and proprietary Fossil Free® mandate, and is restricted to issuers that conduct their affairs in a manner that meets the Manager’s screening criteria in relation to specific Environmental, Social and Governance issues.

Fossil Free® High Impact Equity Fund

The investment objective of the Fossil Free® High Impact Equity Fund is to use funds to support companies making the biggest positive environmental and social impact while also seeking to achieve competitive returns with market-like risk.

Securities for this Fund will be selected from the S&P/TSX and MSCI World Indexes. Companies that appear weak with respect to environmental, social and governance characteristics are excluded as an initial screen. For instance, all companies directly involved in extraction, processing and transportation of oil, gas and coal are excluded.

Next, a sustainable thematic approach, which seeks to profit from the long term trends that are unfolding, is applied. The belief is that population growth will affect demand for scarce resources such as food, water and energy, and that supporting life for more people will also increase the environmental strain on our planet. As a result, the Fund strives to thematically emphasize products and services that offer sustainable solutions to these challenges. Investments are focused in companies that are leaders in areas such as: renewable energy, energy efficiency, water and waste management, low negative impact products, sustainable agriculture, as well as access to healthcare, education and technology. The Fund uses a multifaceted stock selection discipline that considers value, growth, momentum, quality and analyst expectations. The Fund may also use derivatives such as futures and forward contracts to manage cash flows, beta and currency exposure of the Fund without creating leverage.

Fossil Free® Dividend Equity Fund

The investment objective of the Fossil Free® Dividend Equity Fund is to achieve maximum income consistent with preservation of capital with the potential for moderate growth.

To achieve this objective, the Manager primarily invests in companies included in the S&P/TSX Composite and MSCI World Indexes that offer sustainable high income, such as equity securities with high dividend yields and income trust units. The primary strategy employed is one of quantitative security selection, holding between 40 and 100 securities that are expected to outperform the target indexes as a whole. The Fund may also use derivatives such as futures and forward contracts to manage cash flows, beta and currency exposure of the Fund without creating leverage.

The portfolio reflects reasonable GICS sector diversification with maximum single sector exposure capped at 35% and maximum 10% exposure in individual securities.

The returns of this Fund are derived primarily from dividends and capital appreciation on the securities held in this Fund’s portfolio.

Selection of the Fund’s portfolio is governed by the Manager’s unique and proprietary Fossil Free mandate, and is restricted to issuers that conduct their affairs in a manner that meets the Manager’s screening criteria in relation to specific Environmental, Social and Governance issues.

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Stability

When Genus works with you to develop, refine and select your strategies, your Genus portfolio manager will be responsible for ensuring all your investment disciplines are executed appropriately. Carefully following the guidelines you’ve chosen, your portfolio will be fully managed for you on an ongoing basis with all day-to-day investment decisions and transactions made by Genus on your behalf. The advantages of Genus’ discretionary money management service includes experienced monitoring of your portfolio and strategy execution, while providing you with the peace of mind and additional time to pursue your other interests.

Team of Specialists

Genus believes great organizational investment strategies happen when experienced experts collaborate to develop and execute aligned strategies.

To build your investment strategy, your Genus portfolio manager will bring together the capabilities of stock investment and asset mix teams, along with the fixed income strengths of its strategic partners Addenda Capital. The fixed income approach seeks to add value through interest rate anticipation, sector selection, and yield for quality strategies.

When it comes to integrating overall wealth strategies, Genus is always happy to work with your existing team of advisors, and have an additional panel of experts to call upon whenever further expertise is required.

  • Independence As an employee-owned private company, we can offer advice that is free from outside business influence. As a result, we can be fully focused on serving your needs as advocates and fiduciaries.
  • Your money is safe and secure Your wealth is safeguarded by an independent custodian, RBC Investor Services Trust, which is among the top 10 global custodians in the world.

Transparency

  • Competitive fees Our fees are reasonable and transparently based on the market value of the assets we manage for you. In this way, we have a direct financial incentive to put your interests first and help protect and grow your wealth.
  • Family group All of your family’s accounts can be grouped together to lower your expenses.
  • Clear statements We provide an easy-to-understand comprehensive quarterly reporting package that can be customized to meet your needs.
  • Continuous access Secure online access to account information is available 24/7.
  • Consistent results We take great pride in our professional performance, and our returns have continued to earn strong client loyalty and trust.
  • Risk-controlled We follow a stringent institutional approach to help control investment risk.
  • Expert teams Our securities are selected by specialist teams with in-depth knowledge of each asset class, applying clearly defined strategies with consistent results.

Innovation

Alpha strategies

These concentrated stock strategies help clients gain precise geographic exposures, and offer access to our highest-ranked equities in Canada, the U.S. , Europe, Australia and the Far East.

“Best of Best” from around the world

The CanGlobe and Dividend strategies provide diversification and are ideal for maximizing risk-adjusted returns. CanGlobe seeks to maximize exposure to our highest-ranked stocks with market-levels of risk, while our Dividend strategy seeks better income and safety.

Climate-friendly and impact solutions

As a leader in sustainable investing, Genus offers a variety of strategies based on environmental, social and governance criteria, including Genus Fossil Free, Canada’s first family of fossil free portfolios, which aim to add performance by identifying and avoiding ESG-related risks.

Active portfolio strategy

Our proprietary DynaMix asset-allocation research examines over 90 proven market indicators to forecast relative monthly performance amongst several cash, bond, stock, currency and commodity sectors.  DynaMix insights help us increase exposure to attractive asset classes and lower exposure to areas presenting more risk.


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