IMPACT INVESTING
Social Value and Financial Value do not Have to be Mutually Exclusive
Addenda Capital defines impact investing as an investment approach that seeks to create both compelling financial returns and positive social and/or environmental impact that can be adequately measured, tracked and reported. We undertake our own internal analysis of impact, but favor opportunities whose impact framework is recognized by a third-party authority.
Five Broad Themes
The positive impact investment opportunities may span across many themes, structures and asset classes. We seek investment opportunities in bonds and commercial mortgages that focus mainly on five themes:
- Climate Change
- Health and Wellness
- Education
- Community Development
- Water
Established in December 2017, the Addenda Impact Fixed Income Fund seeks income and long-term capital growth.
Discover more about impact investing by watching our "Driving positive change through impact fixed income" webinar.
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CLIMATE TRANSITION
Ignoring a Problem Doesn’t Make it go Away
We see environmental and social challenges as opportunities to invest and help create a better tomorrow. The Addenda Climate Transition approach builds investment portfolios that work closely with companies that share our interest in making a collective change – that is, a resilient net-zero emissions society by 2050.
Our Solution
An inclusive process, which goes beyond divestment, includes:
- Identifying companies for support of transition
- Actively managing a concentrated portfolio with the objective of reducing its carbon footprint
- Using inclusion criteria that strengthen as society progresses throughout the transition period
- Engaging with portfolio companies to encourage their improvement and commitment achievement of climate performance
- Advocating for conditions required for the transition with policymakers and regulators
Our Climate Transition approach, consisting of different phases, would apply to strengthen the companies’ commitments to continuously improve their carbon emissions, while respecting sustainable development criteria and financial requirements. Click here for more information
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FOSSIL FUEL FREE GLOBAL EQUITY
Going Fossil Fuel Free
Addenda Capital seeks to offer long-term added value to our clients, tailoring investment solutions to specific requirements. For clients that wish to align their values with their investment strategy, we offer our Addenda Fossil Fuel Free Global Equity Pooled Fund. The Fund offers clients an exclusionary investing approach towards fossil fuels while generating compelling risk-adjusted returns. The Fund relies on Addenda’s Global Equities investment process which includes extensive thematic research and rigorous fundamental analysis.
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ECO-SOCIAL COMMERCIAL MORTGAGES
Inspired by the United Nations Sustainable Development Goals
One of the first of its kind in Canada. In addition to helping meet the needs of investors, the Fund aims to support Sustainable Development Goals adopted by the 193 U.N. member states to improve the world by 2030. To achieve this, it aims to address issues where Canada can make progress on SDGs, including housing, more sustainable cities and communities, reduced inequalities, good health and well-being, and quality education.
The Eco-Social Fund seeks to invest in focus areas under five main themes:
- Affordable housing
- Green buildings
- Underrepresented groups
- Cultural, non-profit and community facilities
- Health and education
The Fund seeks to generate compelling returns by focusing on capital preservation with a “limited risk” approach.
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