Fossil Free Family of Funds

Genus is one of the few firms in Canada that offers an entire suite of fossil free strategies including fixed income and equity funds.   This allows us to choose from a variety of fossil free strategies to build a suitable fossil free portfolio that will aim to meet both your risk and return objectives.

 

Our fossil free portfolio building blocks (or strategies) are as follows:

Fossil Free Corporate Bond

The investment objective of the Fossil Free Corporate Bond Fund is to preserve capital and to create added value through its fixed income holdings.

To achieve this objective, the portfolio advisor primarily invests in Canadian bonds, debentures and other debt instruments. The minimum quality standard for bonds and debentures is a “BBB” credit rating as determined by the Dominion Bond Rating Service or another comparable rating service. It may also include privately placed investments if consistent with the fund’s overall objective.

 

The returns of this fund are derived from interest and capital appreciation on the securities held in the fund’s portfolio.

Government Bond Component

The investment objective of the Government Bond Fund is to preserve capital and to create added value through its fixed income holdings.

To achieve this objective, the portfolio advisor primarily invests in Canadian bonds, debentures and other debt instruments. The minimum quality standard for bonds and debentures is a “BBB” credit rating as determined by the Dominion Bond Rating Service or another comparable rating service. It may also include privately placed investments if consistent with the fund’s overall objective.

 

The returns of this Component are derived from interest and capital appreciation on the securities held in the Component’s portfolio.

Fossil Free Dividend Equity

The investment objective of the Fossil Free Dividend Equity Fund is to achieve maximum income consistent with preservation of capital with the potential for moderate growth.

To achieve this objective, Genus primarily invests in companies included in the S&P/TSX Composite and MSCI World Indexes that offer high income, such as equity securities with high dividend yields and income trust units. The primary strategy employed is one of quantitative security selection, holding between 40 and 100 securities that are expected to outperform the target indexes as a whole.  The strategy may also use futures to manage cash flows, beta and currency exposure of the component without creating leverage.

 

The portfolio reflects reasonable GICS sector diversification with maximum single sector exposure capped at 30% and maximum 10% exposure in individual securities.

 

The returns of this fund are derived primarily from dividends and capital appreciation on the securities held in this fund’s portfolio.

FOSSIL FREE CANGLOBE EQUITY

The investment objective of the Fossil Free CanGlobe Equity Fund is to achieve maximum income consistent with preservation of capital with the potential for moderate growth.

To achieve this objective, Genus primarily invests in equity securities of companies included in the S&P/TSX Composite and MSCI World Indexes. The primary strategy employed is one of quantitative security selection, holding between 60 and 120 securities that are expected to outperform the target indexes as a whole. The fund’s portfolio reflects diversification by country, sector and quality. Individual equity investments generally do not exceed 10% on a cost basis.

 

The returns of this fund are derived from dividends, capital appreciation on the securities held in this fund’s portfolio and currency movements.

 

The portfolio reflects reasonable GICS sector diversification with maximum single sector exposure capped at 30% and maximum 10% exposure in individual securities.

 

The returns of this Component are derived primarily from dividends and capital appreciation on the securities held in this Component’s portfolio.

FOSSIL FREE IMPACT EQUITY

The investment objective of Fossil Free Impact Equity Fund is to use funds to support companies making the biggest positive environmental and social impact while also seeking to achieve competitive returns with market-like risk.

Securities for this fund will be selected from the S&P/TSX, NASDAQ and MSCI World Indexes. Companies that appear weak with respect to environmental, social and governance characteristics are excluded as an initial screen.  For instance, all companies directly involved in extraction, processing and transportation of oil, gas and coal are excluded.  Next, a sustainable thematic approach, which seeks to profit from the long term trends that are unfolding, is applied. The belief is that population growth will affect demand for scarce resources such as food, water and energy, and that supporting life for more people will also increase the environmental strain on our planet.  As a result, the fund strives to thematically emphasize products and services that offer sustainable solutions to these challenges.

 

Investments are focused in companies that are leaders in areas such as: renewable energy, energy efficiency, water and waste management, low negative impact products, sustainable agriculture, as well as access to healthcare, education and technology.  The fund uses a multifaceted stock selection discipline that considers value, growth, momentum, quality and analyst expectations.