Corporate Responsibility
Investment Stewardship
Responsible and Sustainable investing are approaches to investing that incorporate consideration of environmental, social and governance (ESG) factors into the investment process and stewardship activities with the objective of enhancing long-term investment performance.
AGF Investments* approach to responsible and sustainable investing is built on a philosophy of serving our securityholders’ investment goals and adhering to our fiduciary duty as an asset manager.
AGF Investments* recognizes that a broad range of financial and non-financial considerations may be relevant in making investment decisions. In analyzing the risks and opportunities in an investment, we look to identify ESG factors that are, or could become, material to long-term financial performance. Potential ESG risks or opportunities that are identified are assessed and appropriately considered as part of the investment decision making process where permitted by the investment objective and strategy of the mandate. It is therefore the responsibility of each individual portfolio manager to determine how and the extent to which ESG considerations are to be incorporated into financial analysis within their own investment processes, and in a manner that aligns with the investment objectives of each product or strategy. As a result, ESG factors are incorporated in varying degrees across strategies and may have potential limited impact or weight on final investment decisions and financial performance depending on the investment objective and strategy.
AGF Investments* ESG Committee
AGF Investment’s ESG Committee meets monthly to govern responsible investment matters related to the strategies it manages. The Committee consists of representatives from each investment team across the AGF Investments entities and assists the Office of the Chief Investment Officer and AGF Management Limited’s Sustainability Council with:
- Educational training on ESG issues
- Establishing processes for monitoring AGF Investments portfolio manager engagement of investee companies on sustainability matters and the incorporation of ESG issues into their respective investment processes
- Drafting and updating the responsible investment policies and establishing processes to monitor adherence with such policies across the respective AGF Investment entities.
Our Commitment to Responsible Investing
When opportunity presents itself, AGF engages in dialogue where we seek to influence the company’s approach on ESG factors that are material and relevant for each specific circumstance. AGF participates in broader discussions about standards and best practices in responsible investing. We engage with companies and policy makers on a wide range of issues to understand better the quality of the businesses that we invest in, how they are positioned for future challenges, including their approach to ESG issues.
*AGF Investments Inc. is the signatory to United Nations-supported Principles for Responsible Investment.
AGF is a sustaining member of the Responsible Investment Association (RIA), Canada’s membership association for Responsible Investment. RIA Members include asset managers, asset owners, advisors, and service providers who believe incorporating environmental, social and governance (ESG) factors into investment decisions can provide superior risk-adjusted returns and positive societal impact.
AGF* is a member of CDP** a not-for-profit charity that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. CDP is committed to a thriving economy that works for both people and the planet long term.
As a member of the 30% Club Canada, AGF achieved near gender parity – with six men and four women – in the Boardroom. The 30% Club encourages and supports companies to appoint more women at board level as well as senior management levels.
As a member of The Ceres Investor Network on Climate Risk and Sustainability, AGF engages and collaborates on environmental, social and governance issues to advance leading investment practices, corporate engagement strategies and policy solutions.
The UK Stewardship Code 2020 sets high stewardship standards for those investing money on behalf of UK savers and pensioners, and those that support them. As a signatory, AGF is fully is committed to the 12 principles of the Code to provide greater transparency of our investment stewardship approach and processes to clients and prospective investors in the UK.
*AGF International Advisors Company Limited (AGFIA) is the signatory to UK Stewardship Code.
*AGF Investments represents AGF Management Limited’s group of companies who manage and advise on a variety of investment solutions managed by its fundamental and quantitative investing teams.
**AGF Investments Inc. is the signatory to CDP