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New survey finds $50 billion in social investment in Canada
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Socially responsible investment in Canada is $50 billion, according to SIO's new study. The study, titled Canadian Social Investment Review 2000, is the first time that a comprehensive survey on social investment in Canada has been made available to the public. The study was made possible by sponsorship of two of SIO's founding members, Ethical Funds Inc. and VanCity. "At $50 billion, I think the survey shows that social investment is stronger than expected in Canada," said Eugene Ellmen, SIO's Executive Director. "We have known for some time that screened mutual funds and socially responsible labour funds have been about $10 billion, but the size of the institutional assets has come as a surprise." The survey was released by SIO on Dec. 18. Highlights include: · Total assets of socially responsible investment in Canada on June 30, 2000 were $49.9 billion. This is comprised of: · $10.35 billion in retail investment funds. This includes $5.77 billion in assets of socially screened mutual funds and $4.58 billion in labour-sponsored venture capital funds that are members of the Alliance of Labour Funds. · $11.3 billion in assets (not including screened mutual funds) managed by investment management firms with regard to social or environmental screens. This includes pooled funds, segregated accounts and private stock portfolios subject to social and environmental screens. Total assets held by these companies (including accounts in screened mutual funds) are $14.3 billion. Most of this money is managed on behalf of institutional clients, including pension funds, endowments, foundations, religious organizations and public institutions, such as hospitals and universities. · $27.2 billion in assets of institutional investors managing their funds primarily or wholly in-house with regard to social or environmental screens. · $1 billion in shareholder advocacy initiatives on social and environmental issues. This was comprised mostly of the 22 million shares voted in favour of the shareholder proposal on May 3, 2000 concerning Talisman Energy's activities in Sudan. · $85 million in investments by locally-based community investment organizations, such as microloan funds. · At $49.9 billion, socially responsible investment assets represent 3.2 per cent of the retail mutual fund market and the institutional investment market. This estimate is based on total mutual fund assets of $420.8 billion managed by members of the Investment Funds Institute of Canada (IFIC) and $1,132.7 billion managed by investment managers listed in the annual Benefits Canada survey (November, 2000) for total assets of $1,553.5 billion (June 30, 2000). · While it’s not possible to estimate the growth rate of the institutional social investment market (because this is the first time this market has been surveyed), the retail market has grown 75 per cent from $5.9 billion (June, 1998) to $10.35 billion (June, 2000). This growth has surpassed the growth rate of the mutual fund market as a whole. According to figures published by IFIC, assets of IFIC members grew 30 per cent from $322.7 billion in June, 1998 to $420.8 billion in June, 2000. This shows that social investment assets grew at more than twice the rate of the mutual fund industry as a whole. For a complete copy of the report, visit Canadian Social Investment Review 2000.
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