Sustainability need not mean sacrifice

Fundamental and ESG criteria complement each other, says QV's Ian Cooke.

Diana Cawfield 22 December, 2016 | 6:00PM

Long-term investing and sustainability initiatives go hand in hand, says Ian Cooke, portfolio manager of the Morningstar four-star-rated NEI Ethical Canadian Equity. "There's this myth with socially responsible investing (SRI)," says Cooke, "that an ethical portfolio can be costly from a performance perspective. Having been involved in this for a long time now, I think it's very much complementary in helping drive long-term performance."

Cooke is a vice-president at Calgary-based QV Investors Inc., the sub-advisor to NEI Investments, which conducts the screening for socially responsible criteria. QV's investment strategy focuses on the fundamental quantitative strength of a company along with the qualitative strengths of management teams. "Both are absolutely essential," says Cooke.

Using a predominantly large-cap approach with a quality, value style, QV's discipline is based on holding periods of four to five years. With its emphasis on risk management to protect capital, QV seeks companies with strong balance sheets, strong cash flows, barriers to entry and competitive strengths.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
AltaGas Ltd14.79 CAD-0.60
Bank of Nova Scotia57.20 CAD1.82
Canadian Imperial Bank of Commerce92.46 CAD1.91
Canadian Tire Corp Ltd Class A123.85 CAD5.42
Suncor Energy Inc24.73 CAD3.69

About Author

Diana Cawfield

Diana Cawfield  Diana Cawfield is an award-winning writer who has been a regular Morningstar contributor since 2000. Her numerous publication credits include the Toronto StarAdvisor's Edge and Chatelaine, as well as the Canadian Securities Institute's online educational services.

© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies