Real Assets Investment Management Inc. says its two new “social impact” mutual funds gathered $25 million in assets under management in their first eight weeks. The funds were launched in September 2003.

“We want to help invigorate social investing in Canada,” says Real Assets CEO and portfolio manager Deb Abbey. “So far, we’re delighted with the enthusiastic response from investors and financial advisors.”

The Real Assets Social Impact Balanced Fund is a balanced portfolio composed of Canadian and U.S. stocks as well as Canadian fixed income. The fund is designed as a conservative core holding in a long-term investment portfolio. However, the manager proactively pursues high impact shareholder activism strategies that are far from conservative. Real Assets frequently files shareholder resolutions and votes its proxies in order to push companies to deal with important social, environmental and ethical liabilities that can impair shareholder value.

The fund screens out companies that persistently ignore legitimate shareholder concerns, along with companies with operations in the restricted industries of tobacco, nuclear power and weapons.

Abbey says that the social impact approach makes sense financially. “Companies with excellent employee relations are more productive. Companies with progressive environmental policies aren’t exposed to heavy fines. Companies that treat communities fairly wherever they operate enjoy stronger consumer support.”

Only the very best corporate citizens are candidates for the Real Assets Social Leaders Fund, a global equity portfolio of 25 to 100 companies. Social Leaders demonstrate outstanding leadership and commitment to environmental and/or social sustainability. And, Abbey stresses, they are expected to demonstrate the financial benefits of that leadership.

“For the first time,” Abbey says, “Canadian social investors can invest in the best instead of merely screening out the worst.” She points to fund holdings like Electrolux and Canadian Hydro Developers as examples of Social Leaders whose products reduce human impact on the environment.

News release
http://www.realassets.ca/web_newsroom/index.html

Screening the candidates