Lester Asset Management’s Lynx Global Biodiversity Fund will invest in pure themes such as green infrastructure.Elvira Werkman/iStockPhoto / Getty Images
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Montreal-based Lester Asset Management (LAM) is launching a biodiversity fund next week that the firm says will be the first of its kind in Canada.
Stephen Takacsy, LAM’s president and chief executive officer, says Lynx Global Biodiversity Fund will invest in around 40 stocks across all market capitalizations and its goal is to beat the MSCI World Index.
Globe Advisor spoke with Mr. Takacsy recently to learn more about the firm’s approach and investment strategies for this new fund.
Why did you launch a biodiversity fund?
We see it as the next big wave in sustainable investing. COP15, the United Nations’ Biodiversity Conference, was held in Montreal in December 2022 and aggressive targets were set to halt and reverse the loss of biodiversity which has been accelerating. Through our research, we discovered very few biodiversity funds – about a dozen in Europe, a small one in the U.S, but nothing in Canada.
Why haven’t environmental, social and governance (ESG) funds been performing decently for a while?
Investors have not been happy with the products launched over the past few years. The ESG space is severely greenwashed. They’re loaded with banks, utilities and resource stocks that have had a rough time as of late. Many have nothing to do with climate or clean tech. Renewable energy stocks and utilities got hammered by rising interest rates, and there are a lot of risky holdings in unprofitable electric vehicle, solar, and mining companies.
How will your global biodiversity fund operate differently?
We’re not going to be closet indexers where we justify holding any of the Magnificent Seven. We’re a pure play and will be sticking to themes that will be driven by powerful tailwinds focused on nature.
We’ll have holdings in environmental assessment, monitoring, restoration, and green infrastructure – companies that aim to create more green space, a theme we call environmental stewardship. The second theme is pollution control with waste management companies, water treatment, recycling, and emission control. Our third theme is companies that have sustainable products, processes and supply chains, or focus on energy efficiency. Sustainable agriculture and food systems are our last theme for this fund.
We want to generate strong returns for investors without taking a lot of risk.
– Deanne Gage, Globe Advisor reporter
This interview has been edited and condensed.
Must-reads from Globe Advisor this week
RRSPs, TFSAs or FHSAs – where should Canadians invest when their money is limited?
Canadians have several tax-efficient saving and investment vehicles at their disposal, from registered retirement savings plans (RRSPs) and tax-free savings accounts (TFSAs) to the new tax-free first home savings accounts (FHSAs). But with the increased cost of living expenses, fully funding registered accounts may not be an option for many, leading to questions about how best to contribute. According to a recent Angus Reid Institute survey of Canadians, a smaller financial cushion has meant that two in five individuals don’t contribute to a TFSA or RRSP annually and one in five are contributing less than half of their annual limit. One in 10 Canadians maximize their contributions each year. Helen Burnett-Nichols has more.
Why this seasonal-focused money manager is selling small caps and buying energy and industrials
It’s a good season to be invested in the stock market, says Horizons ETFs Management (Canada) Inc. research analyst Brooke Thackray – but it depends on which sector you’re buying. Mr. Thackray, who runs the $200-million Horizons Seasonal Rotation ETF, is currently bullish on cyclical equities in sectors such as industrials, materials and energy, which he says generally outperform in the first five months of the year. He’s less keen on gold and uranium equities, which tend to weaken heading into the spring. While there are always exceptions to this seasonal strategy, the ETF’s disciplined approach has delivered a strong performance in recent years. Brenda Bouw asks what he’s been buying and selling.
These Canadians wish they had waited to take their CPP benefits. Here’s why
For many Canadians, the decision of when to start taking their Canada Pension Plan (CPP) retirement benefits is a difficult one. Some rely on advice from an advisor who runs the numbers. But even then, the decision often involves more than just math. Others make the decision on their own, based on information from friends and family, or without enough information. Brenda Bouw reports in this latest article in Planning for the CPP, a continuing series in which Globe Advisor explores the decisions behind the timing of when to take CPP benefits and reviews different aspects of the beloved and often-debated government-sponsored pension plan.
Your CPP questions answered: When to file for CPP benefits and strategies to combine them with the OAS
Globe Advisor invited readers to ask questions about their CPP benefits that we can pose to experts to answer. This week, we asked Chris Warner, wealth advisor at Nicola Wealth Management Ltd. in Victoria, to tackle two questions from readers about the combination between the CPP and Old Age Security (OAS): “I’m turning 70 in October. When should I file the application for the CPP and OAS? Can I designate the month I want the payments to start?” and “Does it make sense to consider CPP and OAS benefits jointly, or are they separate conversations? Does delaying OAS impact health benefits?” Read more here.
Also see:
This advisor grew up wanting to be a stage performer but says her career isn’t too far off
Why Canada’s pension funds hold the key to drive innovation and economic prosperity
Why financial infidelity exists in some spousal relationships
Why RRSP season is no longer a scramble to the deadline for many Canadians
Why more portfolio managers are offering financial planning as part of their services
What you and your clients need to know
Uncertainty and complexity are the hallmarks of our tax system today
Most of us have come across those head-scratching questions when doing our taxes. Do I need to declare this? Can I deduct that? The good folks at the Department of Finance seem to have a knack for making things unbelievably complex. Recent tax changes just underline that point. Tim Cestnick explains.
Forget downsizing: Canadian seniors staying in large houses well into their 80s, due in part to a lack of options
James Newcombe, 83, stayed in his roomy home in Georgetown, Ont., as long as he could. Mr. Newcombe’s desire to stay in his family home as long as possible is increasingly par for the course, and the age at which elderly homeowners sell is going up. A Canadian Mortgage and Housing Corp. report in November found that the sell rate for each five-year age cohort for those aged 75 and over has been trending downward since the early 1990s, putting increasing pressure on the housing market. The report, titled “Understanding the Impact of Senior Households on Canada’s Housing Market,” said the sell rate among that age group has fallen about six percentage points in the past 30 years. Saira Peesker reports.
CPA Canada cuts staff in advance of Ontario, Quebec exit
Canada’s national accounting organization has laid off a fifth of its employees in advance of the pullout of all its Ontario and Quebec members, as part of an industry split. Last week, The Chartered Professional Accountants of Canada’s chief executive officer, Pamela Steer, told employees in an internal memo the organization is “in a challenging operating environment” amid the pending withdrawals of CPA Ontario and CPA Quebec. The pullout, she said, triggered the CPA Canada leadership team to conduct a strategic review of the organization. Clare O’Hara and David Milstead have more.
The other immigration problem: Too much talent is leaving Canada
Surging immigration numbers are top-of-mind for Canadians. But as we reconsider targets for newcomers and address pain points such as housing, we also need to pay attention to talent retention. Tens of thousands of people leave Canada every year, many of them talented and entrepreneurial people we will miss. Importantly, a significant fraction are themselves immigrants, which may mean we are missing an opportunity to boost Canada’s long-term growth and prosperity. Parisa Mahboubi and William Robson explain.
– Globe Advisor Staff