Sustainable Investing   |   Feb 20, 2020

Impact Investing: A Third Factor to the Risk/Return Mindset

Traditionally, risk and return are the two most important considerations in the realm of investment management. Modern Portfolio Theory hypothesizes that investors can construct optimal – or “efficient” – portfolios which maximize expected returns by taking on a quantifiable and specific amount of risk. More than sixty-five years after it was first proposed, it continues to be the gold standard for portfolio construction.

Efficiency, however, is in the eye of the beholder. Today’s investors have become sensitive to a third factor: impact. Simply put, investors are demanding that their investments provide more than just a financial benefit, but a societal one as well. At Fiera Capital Corporation, we strive to put together investment solutions that reflect our clients’ intended risk/return objectives, while staying true to their values.

Defining Responsible and Impact Investing

The world of responsible investing (RI) is full of acronyms and terms that lack consensual definitions. To set the foundation for any meaningful dialogue on the subject, Fiera Capital has developed its own Responsible Investing Spectrum, which helps simplify decisions for clients by mapping their impact objective: from environmental, social and governance (ESG) integration (strategies that are adequately compensated for the amount of ESG related risk they assume) to impact only (strategies with intentional and measurable impact objectives like sustainable agriculture, renewable energy, microfinance or affordable basic services).



Important Disclosure

Fiera Capital Corporation is a global asset management firm with affiliates in various jurisdictions (collectively, “Fiera Capital”). The information and opinions expressed herein relate to Fiera Capital’s investment advisory services and investment funds and are provided for informational purposes only. It is subject to change and should not be relied upon as the basis of any investment or disposition decisions. While not exhaustive in nature, these Important Disclosures provide important information about Fiera Capital and its services and are intended to be read and understood in association with all materials available on Fiera Capital’s websites.

Past performance is no guarantee of future results. All investments pose the risk of loss and there is no guarantee that any of the benefits expressed herein will be achieved or realized. Valuations and returns are computed and stated in Canadian dollars, unless otherwise noted. The information provided herein does not constitute investment advice and should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell any security or other financial instrument. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. There is no representation or warranty as to the current accuracy of, or responsibility for, decisions based on such information. Any opinions expressed herein reflect a judgment at the date of publication and are subject to change. Although statements of fact and data contained in this presentation have been obtained from, and are based upon, sources that Fiera Capital believes to be reliable, we do not guarantee their accuracy, and any such information may be incomplete or condensed. No liability will be accepted for any direct, indirect, incidental or consequential loss or damage of any kind arising out of the use of all or any of this material.

Certain information contained in this material constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue,” or “believe” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results, including actual performance, may differ materially from those reflected or contemplated in such forward-looking statements.

Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent with respect to any funds or accounts managed by any Fiera Capital entity. No discussion with respect to specific companies should be considered a recommendation to purchase or sell any particular investment. Companies discussed do not represent all past investments. It should not be assumed that any of the securities discussed were or will be profitable, or that recommendations or decisions made in the future will be profitable.

Each Fiera Capital entity provides investment advisory services or offers investment funds only in those jurisdictions where such entity and/or the relevant product is registered or authorized to provide such services pursuant to an applicable exemption from such registration. Thus, certain products, services, and information related thereto provided in the materials may not be available to residents of certain jurisdictions. Please consult the specific disclosures relating to the products or services in question for further information regarding the legal requirements (including any offering restrictions) applicable to your jurisdiction. For details on the particular registration of, or exemptions therefrom relied upon by, any Fiera Capital entity, please consult the Important Information webpage here.