Jantzi Research, one of Canada's leaders in responsible investment research, has announced that it will join forces with Sustainalytics, a European ESG research provider to the financial sector.
The new company will operate as Sustainalytics globally and Janzti-Sustainalytics in North America.
"The merger combines two trailblazers in responsible investment research," the companies said in a joint statement released today. "The new company responds to an increasing appetite for international ESG research coverage underpinned by local expertise."
Michael Jantzi will be the CEO of Sustainalytics. "We've had a long and successful history of working together thanks to our similar client-focused cultures, shared commitment to quality and common view of sustainability," he said.
"This merger was the logical progression of our past partnership," Jantzi added. "Together, we offer an unmatched understanding of the market and can provide more extensive coverage of companies globally with deeper sector analysis."
Jantzi's Bob Mann will be Sustainalytics managing director for North America. Ronald Lubberts, the former head of Sustainalytics, wil retain the position of managing director, Europe.
"Sustainalytics will continue to deliver high quality, innovative research and client-oriented services to investors and clients, and will offer access to employees spread across two continents and five cities," Lubberts said. "Clients will also benefit from our expertise in responsible investment and sustainability services, including access to a broader variety of products such as carbon related analytical tools."
The new company will be based in Amsterdam and Toronto, with local offices across Europe.
Formed in 1992, Jantzi Research pioneered the "best of sector" screening process and launched the Jantzi Social Index in 2000, a socially-screened stock index based on the S&P/TSX 60. Sustainalytics was created in 2002 and changed its name from Dutch Sustainability Research last year.
This is the second merger in the sustainability research sector in 2009. Earlier this year, RiskMetrics acquired Innovest.
Sunday, September 13, 2009
Friday, September 11, 2009
Dexia brings SRI expertise to Canada
Dexia Asset Management, which has one of the largest SRI teams in Europe, is coming to Canada. The firm, which has $120 billion in assets under management, this week announced plans to open a new office in Toronto.
"Based on our unique approach and strong track record, we are extremely confident in our ability to provide real value to institutional investors in Canada," said Christophe Vandewiele, head of Dexia Asset Management Canada, in a statement.
"We are meeting with institutional investors across the country and many of them are indicating a keen interest in further diversifying their portfolios and obtaining foreign equity management expertise," Vandewiele said. "These institutions are becoming more acutely aware of the importance of social and responsible investing and are searching for quality investment solutions in this area."
Dexia offers more than 20 SRI funds to institutional investors in Europe.
Vandewiele added that SRI is in its "early stages of adoption" in the Canadian market, but noted Dexia's 12-year track record "building and managing a broad range of SRI funds in Europe."
"Accordingly, we are able to offer Canadian institutional investors an unparalleled level of expertise and experience incorporating SRI investments into their portfolios," he said.
"Based on our unique approach and strong track record, we are extremely confident in our ability to provide real value to institutional investors in Canada," said Christophe Vandewiele, head of Dexia Asset Management Canada, in a statement.
"We are meeting with institutional investors across the country and many of them are indicating a keen interest in further diversifying their portfolios and obtaining foreign equity management expertise," Vandewiele said. "These institutions are becoming more acutely aware of the importance of social and responsible investing and are searching for quality investment solutions in this area."
Dexia offers more than 20 SRI funds to institutional investors in Europe.
Vandewiele added that SRI is in its "early stages of adoption" in the Canadian market, but noted Dexia's 12-year track record "building and managing a broad range of SRI funds in Europe."
"Accordingly, we are able to offer Canadian institutional investors an unparalleled level of expertise and experience incorporating SRI investments into their portfolios," he said.
Thursday, September 10, 2009
Sunny Money for Some
As interest in SRI grows, product offerings need to keep pace. A welcome addition for socially responsible investors is the newly launched Solar Income Fund LP. Note, however, that the Fund is structured as a Limited Partnership with a $25,000 minimum investment for accredited investors only. It is offered in BC, Alberta, Saskatchewan, Manitoba, Ontario, Newfoundland, Nova Scotia and PEI.
The Solar Income Fund LP will construct, own and operate solar photovoltaic system installations in Germany. Why Germany? The simple answer – Feed-In Tariffs (FITs). The Renewable Energy Sources Act (EEG) in Germany guarantees each plant operator a fixed price for electricity generated from renewable resources. According to the WorldWatch Institute ‘The FIT is credited for the rapid deployment of wind and solar power among world renewable energy leaders Denmark, Germany, and Spain this past decade. Similar policies have since been adopted by many other countries, leading the FIT to become the most prevalent tool for promoting renewables.’
The EEG has been in force since 2000, and has driven renewable energy capacity and use in Germany. Paul Ghezzi, the Managing Director of the Solar Income Fund LP says ”The reason we selected Germany is that it is the most prudent, the most mature and the most stable market in terms of solar PV. Our hope is that in a year or two, Ontario will be there.” Ontario was one of the first jurisdictions in North America to adopt a FIT, in the Green Energy Act. It is anticipated that the FIT will encourage a similar green renaissance here.
However, the twist in the Solar Income Fund LP is that because the income is generated in Germany, investors will have to file German income taxes, and this makes the investment more complicated.
The three most important variables for the solar PV installations are how much will they cost, who is financing them and who will buy the energy generated. The Solar Income Fund LP has nailed down all three. Their contracts are fixed cost, the banks and the German government have come through with financing on excellent terms and the feed-in tariffs provide certainty at the end of the process. “When it comes to alternative energy, the real money is being made in private infrastructure,” continues Mr. Ghezzi. “This allows individual investors to participate.”
Well, the accredited ones anyway. The Solar Income Fund LP is targeting an 8% return, and hopefully some capital gain for investors at the end of the day. The exit strategy will be to sell the installations, or perhaps take them public a few years down the road when the LP winds up.
The Solar Income Fund LP will construct, own and operate solar photovoltaic system installations in Germany. Why Germany? The simple answer – Feed-In Tariffs (FITs). The Renewable Energy Sources Act (EEG) in Germany guarantees each plant operator a fixed price for electricity generated from renewable resources. According to the WorldWatch Institute ‘The FIT is credited for the rapid deployment of wind and solar power among world renewable energy leaders Denmark, Germany, and Spain this past decade. Similar policies have since been adopted by many other countries, leading the FIT to become the most prevalent tool for promoting renewables.’
The EEG has been in force since 2000, and has driven renewable energy capacity and use in Germany. Paul Ghezzi, the Managing Director of the Solar Income Fund LP says ”The reason we selected Germany is that it is the most prudent, the most mature and the most stable market in terms of solar PV. Our hope is that in a year or two, Ontario will be there.” Ontario was one of the first jurisdictions in North America to adopt a FIT, in the Green Energy Act. It is anticipated that the FIT will encourage a similar green renaissance here.
However, the twist in the Solar Income Fund LP is that because the income is generated in Germany, investors will have to file German income taxes, and this makes the investment more complicated.
The three most important variables for the solar PV installations are how much will they cost, who is financing them and who will buy the energy generated. The Solar Income Fund LP has nailed down all three. Their contracts are fixed cost, the banks and the German government have come through with financing on excellent terms and the feed-in tariffs provide certainty at the end of the process. “When it comes to alternative energy, the real money is being made in private infrastructure,” continues Mr. Ghezzi. “This allows individual investors to participate.”
Well, the accredited ones anyway. The Solar Income Fund LP is targeting an 8% return, and hopefully some capital gain for investors at the end of the day. The exit strategy will be to sell the installations, or perhaps take them public a few years down the road when the LP winds up.
Wednesday, September 2, 2009
Are ethical investments good?
That's the provocative title of a study from researchers at the University of Western Australia, which looked at the returns associated with firms being included in, and dropped from, the FTSE KLD 400 Social Index, the world's longest-running SRI index.
"Our sample includes all firms added to, and deleted from, the [index] after its inception in May 1990 to the end of December 2007. Over this period, 370 firms were added to, and 370 firms deleted from the index."
Although the majority of deletions were due to corporate actions, such as mergers, the authors conclude that, using long-run event study methodology, that "there are positive and statistically significant long-run abnormal returns for firms being included in the [index]."
"We provide clear evidence that investing in companies which are recognized as being ethical can have long-term benefits for investors' wealth," the study states.
The authors admit that their finding "flies in the face of the consensus now emerging from academic studies in finance, which argue that funds' cost of implementing an ethical strategy are passed on to investors and thereby reduce investors' returns."
However, the study says that KLD's decision to include a firm in the index sends a clear signal that a firm is ethical and is also "unequivocally" good news for investors in those firms. "Indeed, some of the abnormal returns are large." More than 50% in some cases. "That is, $100 invested in these stocks would have earned, on average, $50.63 more that an investment in the benchmark."
The authors admit that long-run event studies are problematic and although they make efforts to avoid skewing the results, this report's conclusions will no doubt be controversial.
Download a copy of the study from this website.
"Our sample includes all firms added to, and deleted from, the [index] after its inception in May 1990 to the end of December 2007. Over this period, 370 firms were added to, and 370 firms deleted from the index."
Although the majority of deletions were due to corporate actions, such as mergers, the authors conclude that, using long-run event study methodology, that "there are positive and statistically significant long-run abnormal returns for firms being included in the [index]."
"We provide clear evidence that investing in companies which are recognized as being ethical can have long-term benefits for investors' wealth," the study states.
The authors admit that their finding "flies in the face of the consensus now emerging from academic studies in finance, which argue that funds' cost of implementing an ethical strategy are passed on to investors and thereby reduce investors' returns."
However, the study says that KLD's decision to include a firm in the index sends a clear signal that a firm is ethical and is also "unequivocally" good news for investors in those firms. "Indeed, some of the abnormal returns are large." More than 50% in some cases. "That is, $100 invested in these stocks would have earned, on average, $50.63 more that an investment in the benchmark."
The authors admit that long-run event studies are problematic and although they make efforts to avoid skewing the results, this report's conclusions will no doubt be controversial.
Download a copy of the study from this website.
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