A number of Fiera's clients require that companies deemed unethical be screened out from their portfolios. A company will be deemed ineligible if it derives more than 10% of its revenue, either directly or indirectly, from a list of products or services.
Screening + Integration Strategies
The screening restricts the investable universe to companies not deriving revenue from unethical products or services. The integration strategies try to identify ESG issues, and to the extent that any of these are viewed negatively by our portfolio managers, a risk premium is required rendering a potential investment less appealing from an investment standpoint. The combination of both screening and integration strategies allows for the mitigation of non-financial risks.
Since January 1st, 2016, All of Fiera's Pooled Funds are integrating ESG factors into the fundamental investment decision-making process of the Fund. Fiera Capital is of the view that well-managed companies are generally those that demonstrate high ethical and environmental standards and respect for their employees, for human rights and for the communities in which they do business. These factors are taken into consideration in our fundamental analysis of the investments, as per each investment team's investment process