“In some cases, [firms] have yet to make any movement,” Wheatley said.
Forty of the 47 investment management firms surveyed (85%) indicated that they had considered reconciliation and Indigenous rights recognition within their investment analysis. For 33 of those 40 firms (70%), considering reconciliation led to a change in the valuation of the companies in their portfolio.
However, only 22 firms (47%) had proxy voting guidelines that incorporate considerations related to Indigenous peoples.
Investment managers were also asked whether they knew of any Indigenous-led or Indigenous-focused investment opportunities.
While 18 firms (39%) said they were unaware of any such opportunities, nearly half of firms said they knew about the Raven Indigenous Impact Fund. First Nations Finance Authority Bonds, the National Aboriginal Capital Corporations Association Indigenous Growth Fund and the Deshkan Ziibi Conservation Impact Bond were the other opportunities named by the firms.
Perhaps a result of this limited awareness, only 10 firms (21%) reported raising Indigenous-focused opportunities with their Indigenous clients, and only eight firms (17%) said they’d done so with non-Indigenous clients.
The survey also looked at investment managers’ internal policies for promoting reconciliation.
Twenty-three firms (49%) had enacted policies to attract, retain and/or promote Indigenous employees, while 21 firms (45%) reported having educational programs for management and staff on the history of Indigenous peoples. The least-common policy was related to procurement from Indigenous suppliers, which only eight firms (17%) had adopted.
Wheatley said investment managers have many opportunities to up their game.
“Some Australian investment industry firms have built reconciliation action plans to articulate a firm vision for reconciliation and set targets and responsibilities to guide their actions. We would love to see Canadian firms draw inspiration from these models,” she said.
“Investment management firms have wide spheres of influence within the industry; their direct interface with clients and investee companies and their interaction with regulatory institutions and industry peers position them to be drivers of positive change,” Wheatley added.
The report detailing the survey results included five broad recommendations for investment managers: develop a clear vision on reconciliation; deepen engagement with Indigenous people; identify opportunities to support reconciliation; promote reconciliation across the investment chain; and partner and/or invest in Indigenous communities and businesses.
Truth and Reconciliation Call to Action 92 defined reconciliation for corporate Canada by asking it to adopt the United Nations Declaration on the Rights of Indigenous Peoples. Doing so would involve actions such as ensuring equitable job access for Indigenous peoples and educating staff on Indigenous rights.
The RRII survey was conducted between February and March 2021. Of the firms that provided their location, 27 were headquartered in Canada, one in the U.S. and one in the U.K.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
