We believe that investing responsibly is investing in the long-term interests of investors.

As we are a manager of managers, and do not select individual companies or investments, our Responsible Investing (RI) activities are primarily focused on sub-advisor selection and ongoing monitoring of their RI practices.  

Our sub-advisors may use a combination of quantitative and/or qualitative Environmental, Social, and Governance factors, spanning multiple themes within each of the three categories. The table below shows examples in each category.

 Environmental

 Social

 Governance
  • Energy consumption
  • Pollution
  • Waste
  • Human rights and discrimination
  • Community engagement
  • Employee health and safety.
  • Quality of management,
  • Board independence,
  • Conflict of interest
  • Executive compensation

Each sub-advisor may have different views on what constitutes positive, negative or material ESG considerations and each sub-advisor may have a different ESG assessment of an issuer, sector, industry, or geography.

There are several approaches that are generally categorized under the Responsible Investing umbrella and each approach serves a purpose and responds to a need or investment premise.

We have a responsibility to our funds and unitholders who trust us to act with honesty, in good faith and always in their best interests. This responsibility is the foundation for all our investment activities. Factors such as regulatory changes, the risk and opportunities associated with climate change, cybersecurity, workforce safety and other matters are potential business issues – issues which can have a material financial impact on companies and non-corporate entities. As a manager of managers, our selection and monitoring of sub-advisors is an important part of our investment process. We assess potential sub-advisors based on a number of factors, including fit for purpose, performance reliability, organizational resilience, strategic alignment, systems and analytics, team/resources, and more—all of which naturally extend to a multitude of RI considerations.

Our assessments include consideration of the sub-advisor’s approach to RI and focuses on three key pillars:

  1. their firm-wide commitment,
  2. the implementation of Environmental, Social and Governance (ESG) considerations as part of their strategy, where and as appropriate, and
  3. their approach to active stewardship. 

These three pillars allow us to better understand where a sub-advisor is on their RI journey. Individually, each pillar can allow us to identify a sub-advisor’s strengths and weaknesses.

Instead of focusing on an aggregate external assessment, or leveraging/analyzing external ratings, we look across a broad range of criteria independently that fall under our three main pillars.

Our proprietary framework strives to use qualitative and quantitative information, where possible. Considerations include whether the firm has/is:

  • Put in place an executive-led governance and oversight structure
  • Working towards solidifying existing data and support systems
  • Educational initiatives that serve to develop capacity around Responsible Investing
  • Fostering a culture of collaboration

These firm-wide initiatives normally feed into individual teams, often providing insights at the strategy-specific level.

Expectations ultimately depend on the nature of the investment strategy. What we do seek is a sub-advisors commitment to building capacity to adapt to an ever-evolving landscape. What matters is our conviction that they are likely to continue to deliver in accordance to our expectations, and over time. 

As for our activities, we do expect them to complete a comprehensive Request for Proposal and, once onboarded, annual questionnaire. Some are required to report on various metrics or activities. We generally also expect them to respond to our thematic probes and ad-hoc queries and meet with us on a rotational basis on what we refer to as a RI Deep Dive (or informal sessions that address material changes or developments and/or emerging themes). All of these serve to allow us to better understand their direction of travel as it relates to Responsible Investing.  

Our engagements serve two main purposes. We aim to gain a deeper understanding of our sub-advisors’ journey and learn from their observations and experiences. Although we recognize that each and every sub-advisor faces its own challenges, some not fully within their control, we aim to share our insights whenever we believe they may prove valuable.

Yes. This includes participating in cross-business committees and providing comments on various industry initiatives and consultations. We also take part in educational initiatives such as webinars to raise awareness of our beliefs, approach, and more. 

In 2014, Sun Life signed the Principles for Responsible Investment (PRI), and as a member of the Sun Life group of companies, we also endorsed the PRI principles. In 2021, SLGI Asset Management Inc. became a member of Responsible Investment Association.  In 2022, SLGI Asset Management Inc. became a signatory to the PRI as an investment manager, demonstrating our commitment to Responsible Investing. As well, we joined the Institutional Investors Group on Climate Change (IIGCC) in 2022.

The SLGI AM Board of Directors provides oversight, while the day-to-day implementation of our RI strategy is delegated to the firm’s Leadership Team. The SLGI Sustainability Committee helps set its priorities and goals, and reports as necessary.  Dedicated personnel on our Multi-Asset Solutions Team focus on Responsible Investment initiatives and activities and include the Head of Responsible Investing & Manager Research and Director of Responsible Investing. They work in consultation with Sun Life’s International Investment Centre on certain activities and report their findings to the SLGI Investment Oversight Committee on a quarterly basis. 

1 unglobalcompact.org
2 ific.ca

Information contained on this page is provided for information purposes only and is not intended to provide specific financial, tax, insurance, investment, legal or accounting advice and should not be relied upon in that regard and does not constitute a specific offer to buy and/or sell securities.  Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any mutual funds managed by SLGI Asset Management Inc. These views are not to be considered as investment advice nor should they be considered a recommendation to buy or sell.

Please note, any future or forward looking statements contained on this page are speculative in nature and cannot be relied upon. There is no guarantee that these events will occur or in the manner speculated. Please speak with your professional advisors before acting on any information contained in this article.