Socially Responsible Investing (SRI) is an investment strategy that incorporates screening based on environmental, social, and governance (ESG) criteria into the portfolio construction process. These ESG based screens can be either negative or positive in nature. Negative screens exclude companies that provide certain products and services that have a negative impact on society (e.g. tobacco, gambling) or companies with poor ESG practices (e.g. pollution, employee safety). Positive screens typically select companies based on good overall or specific ESG practices (e.g. company with a high ESG score compared to its peer group) or on some positive attributes from a company's products and services (e.g. renewable energy, water treatment).
RBC Vision Funds
At RBC Global Asset Management (RBC GAM), RBC Vision Funds are designed to meet the needs of investors who:
- Believe that social responsibility should be a primary or integrated consideration in making investment decisions and want to invest in companies that have attractive ESG practices and financial characteristics.
- Want to benefit from the investment expertise of RBC GAM, one of Canada's leading investment managers.
- Want to invest all, or a portion of, their portfolio in a socially responsible investment solution that aligns their investments with their values.
Core Vision Funds
Thematic Vision Funds
RBC Vision Funds investment principles
The RBC Vision Funds Investment Principles set out the screening criteria used to assess the environmental, social and governance (ESG) performance of companies. Companies that do not meet these standards may be placed on a list of ineligible securities, which is a list of companies whose securities cannot be held in RBC Vision Funds.
Socially responsible investing provides an opportunity for investors to participate in capital markets and make investments that are consistent with both their financial goals and personal values. Generally, socially responsible investing incorporates environmental sustainability, social accountability and responsible corporate governance criteria into the traditional investment decision-making process. At RBC GAM, we believe it is important to offer investors choice – including the choice to own investments with a clear SRI focus.
"ESG" refers to Environmental, Social and Governance factors relevant to an investment which may have a financial impact on that investment. ESG investing attempts to enhance analysis of companies by looking at how: companies act as an environmental steward, treat employees, customers and communities and how they govern themselves.
"SRI" uses ESG factors to exclude companies from the investment universe.
RBC Vision Funds are designed to meet the needs of investors who believe that social responsibility should be a primary consideration when making investment decisions. The Funds are ideal for investors looking for a socially-conscious investment alternative while at the same time wanting to meet long-term investment objectives.
The Funds will screen companies on the quality of their Environmental, Social and Governance (ESG) practices relative to their peers and will eliminate poor ESG performers.
The Funds will screen companies on the quality of their Environmental, Social and Governance (ESG) practices relative to their peers and will eliminate poor ESG performers. In addition the funds will exclude certain companies whose primary line of business rests in the following areas:
All RBC Funds undergo risk measurement and other screening tools that can include social, environmental and governance factors. The evaluation of these factors is an important consideration in identifying the potential risk and suitability of an investment and is part of the multidimensional investment approach employed by RBC GAM.
The main difference is that the RBC Vision Funds were specifically developed for investors who believe that social responsibility should be a primary consideration in making investment decisions and also want to benefit from the investment management expertise of one of Canada's largest investment managers, RBC GAM. The RBC Vision Funds all employ exclusionary criteria in their investment process.
To learn more about RBC Vision™ Funds, speak to an advisor.