Desjardins Investments Announces Changes to Mutual Fund Offerings
Desjardins Investments Inc., the manager responsible for Desjardins Funds, is undergoing significant changes aimed at improving its mutual fund lineup. This decision emerges from a continuous review process that ensures the investments align with the evolving requirements of investors and financial professionals.
Enhancements in Responsible Investment Policies
One major focus is the amendment of the "Responsible Investment" policies within the Desjardins Funds. These updates are structured to facilitate investments in entities currently excluded from their portfolio due to a re-evaluation of the global economic climate.
Specifically, by mid-January, changes will lift the restrictions on sovereign debt issued by countries that have not ratified the Paris Agreement. This adjustment allows for more flexible ESG-based risk management, ensuring clientele portfolios are both stable and dynamic in nature.
New Opportunities in Nuclear Energy
Further modifications set for late March involve lifting exclusions on investments in businesses tied to uranium and nuclear energy. While the ban on companies connected to nuclear weapons remains intact, this advancement paves the way for clients to explore the potential of nuclear energy in their portfolios, aligning with international clean energy initiatives.
Streamlining Mutual Fund Offerings
In its quest for improvement, Desjardins Investments will also discontinue certain funds to streamline their offerings. This includes the termination of three specific funds: the Desjardins Sustainable Canadian Equity Income Fund, the Desjardins Sustainable American Small Cap Equity Fund, and the Desjardins Low Volatility Global Equity Fund. The intention behind this consolidation is to enhance overall portfolio management and adapt to the changing needs of investors.
The anticipated termination will not occur until late March, giving current unitholders ample time to adjust their investments. Desjardins will ensure that affected investors receive notifications sixty days prior to the termination date, facilitating informed decision-making and transitions.
Transition to a New Portfolio Management Approach
In another significant update, Desjardins is changing the sub-manager for the Desjardins Canadian Small Cap Equity Fund, with Picton Mahoney Asset Management taking over. This transition aims to enhance the fund's investment strategies and align them with the investment philosophy adopted by Picton, ensuring continuity in investment objectives while potentially enhancing returns.
These changes are expected to roll out around late February and may require regulatory approval, indicating Desjardins' commitment to maintaining transparency and adherence to guidelines throughout this process.
About Desjardins Group
As a vital player in North America's financial landscape, Desjardins Group stands as the continent's largest cooperative financial institution. It presently manages a staggering $511.9 billion in assets. Recognized for its innovative financial solutions and robust support to its clients and members, the organization is also celebrated for being a top employer and one of the world's best banks.
With a rich history spanning over a century, Desjardins Group remains dedicated to providing diverse financial products and services, ensuring that both individual clients and businesses can receive tailored solutions through its expansive network.
About Desjardins Investments Inc.
As a key player in investment fund management in Canada, Desjardins Investments Inc. administers a diverse array of investment funds, showcasing approximately CAN$54.5 billion in managed assets. With a distinguished collection of fund managers from various globally recognized portfolio management firms, Desjardins fosters responsible investing, paving the way for future-centric financial growth for Canadians.
Frequently Asked Questions
What changes are being made to Desjardins Investments' mutual funds?
Desjardins is updating its Responsible Investment policies, terminating specific funds, and changing its portfolio management strategies.
What funds are being terminated?
The Desjardins Sustainable Canadian Equity Income Fund, Desjardins Sustainable American Small Cap Equity Fund, and Desjardins Low Volatility Global Equity Fund will be discontinued.
When will these changes take effect?
The changes are scheduled to roll out between January and March 2026, with specific dates outlined for each adjustment.
Who is the new sub-manager for the Canadian Small Cap Equity Fund?
Picton Mahoney Asset Management will replace the previous sub-manager for the Desjardins Canadian Small Cap Equity Fund.
How does Desjardins ensure responsible investing?
Desjardins regularly reviews its investment policies and strategies to adapt to evolving market conditions and enhance sustainable investing practices.
