VANCOUVER, British Columbia, Oct. 16, 2017 (GLOBE NEWSWIRE) -- Genus Capital today released a report on its four-year investment data, entitled Divestment Report: Four Years of Fossil Free Performance. The returns of Genus Capital’s Fossil Free CanGlobe Equity Fund, detailed in the report, show investors who divested climate-impacting fossil fuels from May 2013 to July 2017 did not sacrifice returns. In fact, the fund outperformed the returns of its benchmark* and the overall Canadian stock market index, both of which include coal and major carbon producing industries.
"Perception has long been that including fossil fuel stocks in a portfolio was necessary to generate returns, even for investors concerned about climate change," said Wayne Wachell, CEO and Chief Investment Officer of Genus Capital. "We now have conclusive data to demonstrate that isn't the case."
The report recognizes that divesting presents a challenge for Canadian investors, since extractors, transmitters and emitters of fossil fuels constitute approximately 30 per cent of the value of the Canadian stock market. Genus' fossil free equity funds combined Canadian and global stocks into a single optimized strategy that emphasized top industries in each region, helping to fill the energy gaps with strong companies in other economically sensitive sectors with the potential to achieve energy sector-like stock price exposure.
The Fossil Free CanGlobe Equity Fund has outperformed its benchmarks* since its inception in 2013, but surpassing the four-year milestone validates the company's hypothesis that a divested portfolio can yield better returns than a carbon-heavy one. Genus Capital created the fund at the prompting of the David Suzuki Foundation.
"We approached Genus about creating a divested fund because we knew our investments needed to align with our values," said Andrea Seale, Acting CEO of the David Suzuki Foundation. "Having the data to show that not only is divesting good for the planet — it also generates better returns, is huge. We hope other organizations, and indeed investors, will follow suit and join this movement."
For more information and to download a copy of the report, please visit www.genusfossilfree.com
Notes to Editor
*Fossil Free CanGlobe Equity Benchmark: 35% S&P/TSX Composite, 65% MSCI World (04/01/2015 - Present) Benchmark changed from 40% S&P/TSX Composite, 30% MSCI EAFE, 30% S&P 500 (04/09/2013 - 03/31/2015). Past performance is no guarantee of future performance.
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About Genus Capital Management Inc.
Genus Capital Management Inc. is an independent investment management firm based in Vancouver, founded in 1989. We are passionate about creating innovative investment solutions that meet our clients' changing needs. With more than $1.2 billion in assets under management, Genus' clients include leading environmental organizations, foundations, and individuals across Canada. Today, Genus Capital is at the forefront of Canada's Divest-Invest movement with a complete suite of fossil fuel free funds that are tailored to meet the needs of investors who wish to invest in a sustainable, clean energy future.