Integrating ESG Risk Analysis Into A Macro Investment Strategy
Integration of Environmental, Social and Governance (ESG) risk factors into investment processes is increasingly common for strategies that select across individual securities, including public equities and bonds, and private assets. It is less common for top-down absolute return macro strategies that invest on the basis of an analysis of country-level fundamentals. In CIBC Asset Management’s recent research paper, the authors describe their approach to rigorous ESG integration in the context of the CIBC AM (CAM) Active Currency investment strategy.
The CAM framework encompasses a dynamic macro ESG scoring methodology spanning distinct E, S and G quantitative factors, and complementary forward-looking qualitative country analysis. This approach facilitates a continuous robust assessment and integration of ESG risks into Active Currency portfolio construction and positioning, and ensures that client portfolios are continuously exposed to those opportunities with the highest accompanying risk-adjusted expected returns.
For more information, read CIBC Asset Management’s Research, “Integrating ESG Risk Analysis Into A Macro Investment Strategy.” If you have further questions, please reach out to your CIBC Mellon Relationship Manager.
Security Enhancements Coming to CIBC Mellon’s Recordkeeping Document Delivery Portal
CIBC Mellon continually seeks to strengthen security protocols around its technology systems, along with client data and information under its control. We have identified an opportunity to enhance information security when sending duplicate tax slips, duplicate statements and other documents that may contain personal and private information to advisors that support our clients and their investors.
CIBC Mellon uses Transport Layer Security (TLS) to protect emails from message eavesdropping and tampering by creating an encrypted communication tunnel between its email gateway servers and those belonging to an external party. Effective July 12, 2021, we will begin using our “Send Securely” email feature when sending documentation to advisors that are not currently enabled to receive TLS messages. As part of this feature, the recipient receives a notification in their email inbox asking them to set up a password through the Secure Mail portal. Upon establishing a password, the recipient is then eligible to receive secure emails from CIBC Mellon.
Note that advisors that are subscribed to CIBC Mellon’s TLS protocol, or request their duplicates through WealthLink, WealthDocs or via fax, will experience no impact and can continue using these secure delivery methods.
If you have any questions about our new email security enhancement, please contact your CIBC Mellon Relationship Manager or recordkeeping Client Relationship Representative.
CDS Advises of the Observance of New Federal Statutory Holiday – The National Day for Truth and Reconciliation on September 30, 2021
On June 3, 2021, Canada's federal government received royal assent for Bill C-5. This legislation provides for the observance of a new federal statutory holiday, the National Day for Truth and Reconciliation. This statutory holiday will be observed on September 30 of each year.
While the Canadian Depository for Securities (CDS) notes that it will be open on September 30, 2021, CDS has been advised that the Bank of Canada and Payments Canada's systems (ACSS and LVTS/Lynx) will be closed. Consequently, CDSX Online will be operational but CAD settlement activities will be restricted. CDS states that a bulletin closer to September 30 will be issued to provide additional operational details.
TMX Markets advised the Toronto Stock Exchange, TSX Venture Exchange, and TSX Alpha Exchange will be open for trading on National Day of Truth and Reconciliation and regular operating hours will be in effect. TMX Markets states that as this holiday is considered a non-settlement day, an updated settlement schedule will be provided closer to the holiday.
While September 30 has been designated a federal holiday, we note that a holiday designation has not been made at the provincial level at this time. As a result, CIBC Mellon will provide operational services on this day. CIBC Mellon will continue to monitor any changes related to provincial holiday legislation and apprise clients regarding changes to its operating schedule.
For more information, see the CDS bulletin and the TMX Markets Operating Schedule.
AIMA’s Alternative Credit Council Releases Guide to Private Credit for Borrowers and Investors
Canada’s Alternative Investment Management Association’s (AIMA) Alternative Credit Council (ACC) recently published a comprehensive guide to accessing private credit for both business owners and Canadian investors.
For more information, read the report.
Canada’s Office of the Superintendent of Financial Institutions Publishes Letter on Prudential Treatment of Crypto Asset Exposures
Canada’s Office of the Superintendent of Financial Institutions (OSFI) states that it has seen significant growth in crypto assets and recognizes that regulators globally have started analyzing the risks associated and considering whether adjustments are needed to prudential frameworks for crypto asset exposures. In its latest letter, OSFI aims to raise awareness of international consultations on the prudential treatment of crypto assets and seek views from all Federally Regulated Financial Institutions (FRFIs).
For more information, view OSFI’s letter.