Responsible investment and COVID-19

Spring 2020

Responsible investment: A solid strategy for volatile markets

The COVID-19 situation is evolving quickly, and we understand that you may have concerns. The continued spread of the coronavirus has resulted in increased stock market volatility. Our best advice: stick to your investment strategy. The markets have always had ups and downs, but over the long term, they’ve generally increased in value.

One of the core tenets of responsible investment (RI) is the belief that a company that cares as much about its environmental, social and governance (ESG) policies as it does about its financial performance is better equipped to meet the challenges of the global economy.

Rebound opportunities

In the current context, it's preferable to hold shares in companies that have strong corporate leadership, sound financial health and strong ESG ratings, all of which provide the stability and flexibility needed to weather the storm.

It's no accident then that our SocieTerra Funds and Portfolios proved to be resilient during the last quarter. As of March 31, 2020, all of our equity funds achieved higher returns than the one-year median return in their categorynote1.

A portfolio that generates a positive impact

What's more, our portfolios invest in businesses that are part of the solution and are responding to the challenges that society is currently facing. Here are a few of these health, food and technology companies.

Health – COVID-19

Company: Qiagennote2

Manufacturer of a COVID-19 diagnostic test.

This company is part of:

Desjardins SocieTerra International Equity Fund


Health – COVID-19

Company: Modernanote2

Developer of a COVID-19 vaccine. Phase II clinical trials could begin in May.

This company is part of:

Desjardins SocieTerra Positive Change Fund


Health

Company: Teladoc Healthnote2

Provider of telemedicine, virtual health care, medical advice and analysis using artificial intelligence.

This company is part of:

Desjardins SocieTerra Positive Change Fund


Food retail and distribution

Company: Loblawnote2

Food retailer and distributor. In 2018, 50% of seasonal produce was purchased from Canadian growers. Loblaw has committed to reducing store-generated food waste by 50% by 2025.

This company is part of:

Desjardins SocieTerra Canadian Equity Fund


E-commerce

Company: Shopifynote2

Canadian e-commerce company that enables hundreds of companies to continue doing business despite store closures.

This company is part of:

Desjardins SocieTerra Canadian Equity Fund

Desjardins SocieTerra Positive Change Fund


This information should not be construed as a recommendation to buy or sell the securities, products or services referred to or as the sole basis for an investment decision.

  1. Morningstar. - External link. Opens in a new window. [on-line], 2021. [cited March 31, 2021].
  2. This company is in the fund’s portfolio as at April 30, 2020.

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Desjardins Funds are not guaranteed, their value fluctuates frequently, and their past performance is not indicative of their future returns. Commissions, trailing commissions, management fees and expenses may be associated with mutual fund investments. Please read the prospectus before investing. Desjardins Funds are offered by registered dealers.