(October 4 – 09:30 ET) – Meritas Financial Inc. has moved a step closer to launching its “faith based” fund family. The Winnipeg-based firm has hired Gary Hawton as chief executive officer after an extensive selection process.
The family of socially responsible funds is a joint venture with Waterloo, Ont.’s Mennonite Savings and Credit Union Ltd., the Mennonite Foundation of Canada and Mennonite Mutual Aid of Goshen, Ind.
Hawton says there’s a great need for this type of product in Canada according to a 1999 survey by the Social Investment Forum. “We hope to help investors bridge the gap that currently exists between their principles and the way that they invest their money.”
The survey says that approximately $2.2 trillion was invested in what they consider a socially responsible manner in the U.S. That represents 13% of the $16.3 trillion in total investments. Numbers for Canada indicate that the SRI market stands at $4 billion, representing only 1% of the mutual fund market.
“I think that there is a significant portion of the Canadian population, including those outside of the Mennonite community, that will be interested in a family of funds that screens investments in line with their faith values,” says Hawton.
The funds will be available through credit unions, discount and full service brokerages, and independent planners. “Meritas intends to go beyond the traditional screening found in the SRI industry and will engage in active dialogue with management to increase corporate accountability and stewardship,” Hawton says.
A final launch date hasn’t been set and details on specific funds haven’t been made available yet.
-IE Staff