2020 Divestment Report

2020 Divestment Report

With divesting from fossil fuels for the seven-year period ending July 31, 2020, our Genus Capital’s Fossil Free™️ CanGlobe Equity Fund has produced better results than the returns of its benchmark* and the overall Canadian stock market index, both of which include coal and major carbon producing industries.

* Fossil Free™ CanGlobe Equity Benchmark: 25% S&P/TSX Composite, 75% MSCI World (06/30/2020 – Present) Previous Benchmark 35% S&P/TSX Composite, 65% MSCI World (03/31/2015 – 06/30/2020) 40% S&P/TSX Composite, 30% MSCI EAFE, 30% S&P 500 (04/09/2013 – 03/31/2015

Divestment can mean more returns

With divesting from fossil fuels for the seven-year period ending July 31, 2020, the fund has produced better results than the returns of its benchmark* and the overall Canadian stock market index, both of which include coal and major carbon producing industries.

Diversified portfolios that align with your goals

The Genus Fossil Free CanGlobe strategy leverages our “total equity” approach to help maximize diversification and risk-adjusted returns. The Fossil Free CanGlobe Equity seeks to maximize exposure to our highest-ranked stocks with market levels of risk.

2020 divestment report book

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    By downloading this 2020 Divestment Report you agree to receive communications from Genus from time to time, including the Genus Fossil Free and Impact Newsletter.

    [IMPORTANT] By downloading this report, I acknowledge that information within it has been provided for informational and discussion purposes only as of the noted date and may contain simulated and/or hypothetical data. I understand that reliance on this data may have inherent limitations and risks and that information related to projections, returns and performance are estimates only and do not guarantee future results. Reliance on this information should only be undertaken with the accompanying advice of a professional.

    Stronger returns

    Genus Fossil Free’s climate-friendly equity funds have both beaten their benchmark on an annualized basis for three years.

    Better impact

    Divesting from fossil fuels and reinvesting your money into cleaner and more efficient energy solutions can be a sound strategy.

    Lower risk

    Divestment reduces exposure to the energy sector’s volatility and the associated ‘stranded asset risk’ of carbon reserves devaluing prematurely.

    Myth of underperformance

    We developed this report to dispel the myth of underperformance when it comes to sustainable investing. Many investors are concerned that accounting for social and environmental impact in their portfolios means compromising return potential.

     

    While past performance does not guarantee future success, the Genus live performance and results of the historical back tests show that no compromise is necessary.

     

    We believe fossil fuel divestment has the potential to reduce overall portfolio risk due to potential energy sector volatility and stranded asset risk.

    Stranded asset risk

    Fossil fuels present a ‘stranded asset’ financial risk. Energy reserves such as coal, oil and natural gas, may lose substantial value due to changing regulations, investor interests and the growth of renewable energy sectors. For example, Norway’s sovereign wealth fund (the world’s largest at $860 billion) divested from fossil fuels in hopes of reducing its financial risk.

    Methodology

    The Fossil Fuel Divestment Report examines the three-year live performance results of the Genus Fossil Free CanGlobe Equity Fund, further substantiated by research going back almost 20 years.

     

    The effects of climate change have triggered a global divestment movement. More than ever, people are voting with their wallets by directing investment away from polluters.

     

    Divestment now could protect your assets in the future. But what to do with the money you divest from the fossil fuel companies? Answer: Reinvest in companies leading the way to a clean energy future.

    *Fossil Free CanGlobe Equity Benchmark: 35% S&P/TSX Composite, 65% MSCI World (04/01/2015 – Present) Benchmark changed from 40% S&P/TSX Composite, 30% MSCI EAFE, 30% S&P 500 (04/09/2013 – 03/31/2015)

    It’s time to align your investments with your values

    You care about the environment.
    But are you contributing to climate change?

    For 9 years Genus has been offering a way to divest and go fossil free. Since 2014, our Fossil Free Impact Equity Fund invests in businesses that are leading innovation in a sustainable economy.

    If you are ready to go fossil free,
    let’s talk!