The funds

FÉRIQUE Fund Management aims to achieve carbon neutrality for its family of funds by 2050, in line with the Paris Agreement, while balancing this target with maintaining and respecting the performance objectives of each fund.
Since 2021, the firm has implemented a carbon plan to protect the FÉRIQUE Funds against risks associated with the energy transition while contributing to the global reduction of greenhouse gas (GHG) emissions. This approach was formalized by its addition to the prospectus. Consequently, all managers and sub-managers incorporate two key elements into their investment strategies:

1. Commit to contributing to the achievement of carbon neutrality for the FÉRIQUE Funds family.
2. Use their shareholder powers to advance at least three "commitments" related to climate issues within companies held by the FÉRIQUE Funds.

Carbon footprint progress

FÉRIQUE Fund Management has measured the evolution of GHG emissions of scopes 1 and 2 per million dollars invested (a methodology widely used in the industry) for the equity securities of the FÉRIQUE Funds family compared to benchmark indices. At this stage, we do not display the carbon footprint of our bond investments due to the lack of consensus on the methodology for evaluating the footprint of this asset class.

The financed emissions, i.e., the GHG emissions of a company that are allocated to the FÉRIQUE Funds in proportion to the shares held, decreased by 4% in 2023 to bring the gap to 19% compared to the reference year (2019).

The reduction in the emissions ratio per dollar invested is another key metric we monitor. This reduction is 35% compared to 2019.

The favorable gap for the FÉRIQUE Funds family compared to the benchmark index is largely due to our approach to responsible investing and the offering of the sustainable global equity fund. For example, the FÉRIQUE Global Sustainable Equity Fund has a carbon footprint 69% lower than its benchmark index¹, with 12 tonnes of CO₂ equivalent per million dollars invested compared to 39 tonnes for its index as of June 30, 2023².

ESG issues are considered by our asset managers in the securities evaluation process, according to their own methods and investment philosophies.

FÉRIQUE Fund Management believes this allows managers to create a more complete profile of a company and to consider a broader range of investment risks as well as all opportunities associated with these factors. Thus, it enables the achievement of solid financial performance, enlightened risk management related to the energy transition, and a healthier living environment for all, while respecting the performance objectives of our funds.

Two Funds Focused on Sustainable Development

The FÉRIQUE Global Sustainable Development Bonds Fund and the FÉRIQUE Global Sustainable Development Equity Fund stand out within the FÉRIQUE Funds family. With sustainable investment as their main strategy, these are two interesting options for investors wishing to make an extra step towards sustainable development. All other Funds are managed in a way that considers ESG criteria and integrates shareholder engagement into their investment strategy, without it being their main investment strategy.

Our funds also offer us a way to actively contribute to the transition to a more sustainable global economy through other means than reducing their carbon footprint. There are two main ways we do this.

Proxy voting

Proxy voting gives shareholders a say so they can have a positive influence on companies in which they invest. Transparency, accountability and long-term profitability are the three principles guiding our proxy voting policy.

Under this policy, we always vote based on best practices, for example in terms of diversity, compensation or board independence. Conversely, we refuse to support proposals that go against such best practices. In 2023, the FÉRIQUE Funds exercised their voting rights at 572 shareholders’ meetings, on a total of 8,129 proposals. We supported the boards’ recommendations in 59% of cases.

As shown in this chart, the top three areas where we exercise our voting rights are shareholder proposals, reports on compensation and board member elections. They alone account for two-thirds of the votes cast annually. Given their number and impact on boards of directors, they are key issues to monitor.

Take a look at some proposals examples in our Sustainable Development Report (French only).

Shareholder engagement

Shareholder engagement involves holding active dialogue with companies where we have ESG concerns, in order to encourage them to improve their practices and introduce more equitable and sustainable approaches.

Our partnership with the shareholder engagement services firm Æquo has allowed us to continue our discussions with several Canadian and American companies. The number of companies involved will increase in the coming years thanks to a new expanded partnership with Æquo. They will increase from ten to about thirty per year. Our participation in the Climate Action 100+ initiative also allows us to encourage some companies to make significant strategic changes. For example, in 2023, Imperial Oil set a goal of zero net greenhouse gas emissions by 2050.

Take a look at some proposals examples in our Sustainable Development Report (French only).