Background 

Louisbourg Investments’ operations are guided by its clients’ investment policies and concerns about various subjects, in particular elements of risk and responsible investment. 

Responsible investment is changing rapidly and now represents a major shift in the financial world. Louisbourg Investments recognizes that environmental, social and corporate governance issues are relevant. It also recognizes the importance of pursuing sustainable economic development, and thus is of the opinion that responsible corporate behaviour can have a positive influence on long-term financial performance.  

Based on these reflections, Louisbourg Investments has decided to prepare this policy in order to make the notion of responsible investment integral to all of its activities. 

In preparing and implementing its policy on responsible investment, Louisbourg Investments has adopted a pragmatic approach, in particular through the exercise of its right to vote by proxy, and through dialogue with the firms in which it invests. A broad range of financial and other considerations may be relevant when making investment decisions. Louisbourg Investments is also of the opinion that a business’ social responsibility must be among its investment criteria, although not the only criterion.  

Definition 

In this policy, Louisbourg Investments refers to responsible investment as: “Taking into consideration environmental, social and governance (ESG) concerns when managing and choosing investments.” 

Policy framework and criteria 

This policy on responsible investment applies to the following types of instruments: corporate bonds, North American shares and international shares.  

Louisbourg Investments has adopted a policy on responsible investment composed of the following points:  

• Strict exclusion of investment sectors that violate Louisbourg Investments’ values. Businesses operating exclusively in the production of or trade in arms, tobacco or pornography are excluded.  

• A “Best in Class” approach to inclusion by which it selects the best companies in a potentially controversial sector, but also encourages market stakeholders to take a certain amount of responsibility. 

• A dialogue-based approach in which Louisbourg Investments supports shareholder actions already under way or communicates directly with businesses in order to discuss environmental, social and corporate governance concerns.  

• Voting by proxy is an important component of our process of engagement when investing in shares of public companies. Louisbourg Investments has adopted a policy on managing proxy voting rights that deals with various subjects on which we may be called to vote.  

Roles at Louisbourg Investments 

Various actors are responsible for the following tasks related to the development, approval and implementation of this policy: 

Board of Directors: The role of the Board of Directors is to define general directions and to approve the policy on responsible investment. 

CEO: The role of the CEO is to ensure that all mechanisms required to implement the decisions of the Board of Directors are in place and efficient.  

Portfolio managers: The role of portfolio managers is to integrate the principles stated in the policy on responsible investment into their management and, if required, they are given the required training to do so. It is also their responsibility to establish dialogue with business leaders about corporate responsibility.  

Updating and accountability  

This policy will be reviewed annually at the same time as other Louisbourg Investments reports.