Ask yourself the right questions

The first thing to do is to ask yourself why you’re interested in responsible investment. Do you want your investments to be good for the planet? Do you prioritize social values? Do you want the companies in which you invest to be ethical with respect to gender diversity? A financial product’s degree of responsibility will vary according to the importance it places on these criteria in its choice of securities.

When choosing products for your portfolio, your financial advisor may ask you a series of questions to get to know you better. Laurie Bossé, a financial planner at RGP Wealth Management, systematically discusses responsible investment with her clients. “It’s important to gauge their interest, of course, but also to understand what attracts them to responsible investing,” she says. “We need to understand our clients’ values, because there are many different products on the market which have a greater focus on environmental, social or governance factors.”

Determine your limits

You also need to ask yourself whether you’re prepared to make certain compromises so that your portfolio maintains a desired level of market performance or whether you’re prepared to stick to your principles at all costs. The answer you give to this question will also guide your financial advisor, whose aim is to ensure that the product chosen is in line with your objectives and principles.

ESG factors are added to an assessment of a company’s or fund’s risks and returns. “At BeeQuest, we integrate ESG factors into the analysis of every company we evaluate based on the aspects that are relevant to their industry,” explains Mathieu Blais. “This enables us to favour the best players supporting ESG principles while eliminating companies that don’t meet criteria deemed essential by our portfolio managers.”

Knock on the right door

You’ll also need to choose an advisor who’s familiar with responsible investment, which isn’t yet the case for everyone. “When responsible investment first entered the market, financial advisors had some difficulty mastering its principles well enough to be able to discuss it easily with their clients,” says Alexandra Tanguay, a portfolio manager and responsible investment specialist at RGP Investments.

Don’t hesitate to ask your financial advisor questions about this type of investment. Advisors have an obligation to inform you well, and if they aren’t experts in responsible investment, they will refer you to a colleague. All professionals must take into account the limits of their knowledge and obtain the necessary assistance while refraining from any misrepresentation of their skills or services. In short, they must demonstrate transparency.

At present, most of the clients interested in responsible investment are women, as are most of the financial advisors who are experts in this area. According to Alexandra Tanguay, products in this category suit women well, especially from a long-term perspective, as they tend to focus more on a product’s social or environmental impact, whereas men are often more interested in its performance and return.

This difference between men and women, which doesn’t exist among the younger generations, is likely to diminish over time. Many financial advisors, eager to adapt to the growing needs of their clients, are taking or preparing to take specialized training courses on responsible investment. This professional approach enables all advisors working in Quebec to pursue their continuing education objectives and perfect their knowledge in order to maintain an optimal level of competence. Ultimately, consumers are protected when dealing with professional advisors. This bodes well for the quality of service you’ll receive if you’re interested in responsible investment.