Responsible Investment funds worth another look

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Ten years ago, many thought that responsible investing meant lower returns and increased risk.  The strong financial performance of Responsible Investments over the past decade has helped reassure

investors that investing responsibly can deliver returns comparable to non-RI investments. Yet the notion that a Responsible Investment approach can help reduce portfolio risk has lacked supporting data. Until now.


A recent study commissioned by OceanRock shows that Responsible Investment funds protect investor capital better than non-RI funds. In particular, RI equity funds showed strong risk characteristics in their ability to:

  • Deliver a better financial return at a given level of risk; and
  • Protect investor capital by mitigating losses in down markets

To produce the study, Canadian RI Funds Risk / Return Characteristics, OceanRock commissioned Dr. Tessa Hebb and the Carleton Centre for Community Innovation in early 2015. Dr. Hebb compared Canadian Responsible Investment mutual funds across various asset classes to comparable non-RI funds. She looked at returns over standard performance periods alongside several risk parameters. This approach revealed how both performance and risk metrics measured up for RI funds versus an average of comparable non-RI mutual fund.


This represents good news for investors. According to a 2014 NEI Investments study compiled by Environics Research Group, 71% of Canadian investors want to make a difference, but 56% can't figure out how RI helps. Now we know. The OceanRock study shows that you can achieve competitive returns, reduce downside risk and make a difference.


For your complimentary copy of the full study, or to discuss how you can incorporate resonsible investment funds into your portfolio, contact Four Points Financial Solutions at 1-866-235-0004.