Responsible Investing Improves Returns

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    Responsible investing is not just good for the environment, the community, and corporate governance, it’s good for investors seeking better returns, reduced volatility, lower risk, and more downside protection of capital, says an academic study commissioned by OceanRock Investments Inc. ‘Canadian RI Mutual Funds Risk/Return Characteristics’ shows that Canadian-based RI equity mutual funds outperformed their non-RI peers 63 per cent of the time and Canadian-based RI fixed income and balanced mutual funds outperformed their non-RI peers 67 per cent of the time. Previous Canadian studies have linked ESG to better financial returns, but none have studied whether taking ESG factors into account can protect against downside risk. The study suggests that investors who want to protect their investment assets while enjoying comparable returns should consider adding RI funds to their portfolios. Gary Hawton, president of OceanRock, says “Investors need to consider the growing evidence on the benefits of responsible investing to ensure they are making the most of their investment opportunities.” RI is one of the fastest growing investment trends in the last decade with assets under management growing from $600 billion to more than $1 trillion in the two years to the end of 2013, representing a 68 per cent growth rate. It was presented at the ‘2015 RIA Conference.’