Borealis GAM Inc. selected by QEMP for a global ESG equity strategy
Montréal, Québec, October 27, 2022
The Quebec Emerging Manager Program is proud to announce the selection of Borealis GAM Inc. for a global ESG mid-cap equity mandate.
Following a rigorous selection process, the Quebec Emerging Manager Program (“QEMP”) has selected Borealis Global Asset Management Inc. (“Borealis”), an investment firm specializing in sustainable and equitable investing. Borealis was founded in 2019 by two managers deeply experienced in institutional management, with the conviction that investors have a key role to play in accelerating the transition to a model of sustainability. Valérie Cecchini, co-founder, is a pioneer of responsible investment in Québec who has been working to advance sustainable finance within the profession, academia and philanthropy for over ten years. Florent Salmon, co-founder, contributes complementary expertise, notably in quantitative research, portfolio construction and risk management, acquired over more than 25 years in the investment industry.
The objective of the Borealis Global ESG MidCap Equity Fund L.P. is to outperform its benchmark and to improve its non-financial performance over time. Borealis uses a fundamental approach, including ESG and non-financial factors, to construct a concentrated portfolio of global mid-cap stocks. The strategy focuses on mid-capitalization companies located in developed countries. These companies are major players in the value chain, both internationally and locally, and offer attractive long-term investment opportunities, driven by their innovation capabilities and solid financial position.
“Like the companies in which it invests, Borealis GAM seeks to balance economic and social performance, with the dual objective of maximizing long-term returns for its partners while enabling them to have a positive impact in our community.
Our mission at Borealis is to influence the strategic choices made by companies, notably through shareholder engagement, and to direct capital flows towards sustainable economic activities for the benefit of all stakeholders. In this way, we are helping to shape tomorrow’s world, one dollar and one vote at a time.”
– Managing Partner and Portfolio Manager, Borealis GAM
“We are grateful to the QEMP for selecting Borealis for this global ESG management mandate. This is an important show of support that will allow us to strengthen our team in Montréal and be in a better position to seek mandates outside Québec, broadening our reach.
Our complementary expertise has allowed us to develop a unique investment process that truly integrates technology into a traditional stock selection and portfolio construction process. Our Borealis LAB division is at the core of our innovation efforts in asset management. This is a more robust and more flexible investment model that enables us to offer our investors an innovative investment solution.
From the outset, we also wanted to link our analytical framework to non-financial data. This approach provides a broader view of the company, its risk factors and its growth opportunities. We believe this is a significant source of long-term alpha that should be leveraged and that we want to extract for our clients.”
– Florent Salmon, Managing Partner, Borealis GAM
“We are delighted to contribute to the success of Borealis and the launch of their ESG strategy. Valérie and Florent are renowned experts in institutional portfolio management in Montréal. The QEMP, an impact investment,
will support their growth and promote local talent. Borealis is also a great example of the technological and innovation capabilities found among Québec’s emerging managers. We are proud to welcome a firm that is aligned with the responsible investment considerations prioritized by our investors and the growing demand from the institutional market.”
– Carolyn Cartier-Hawrish, Manager, QEMP
As a fund of funds structure, the QEMP grants emerging managers structured investment mandates and offers a mentorship framework, supported by prestigious Québec institutional investors. Within this context, Innocap, the combination of two of the most respected firms in the dedicated managed account industry: Innocap + HedgeMark, ensures a rigorous institutional framework in terms of due diligence, risk management and continuous monitoring of the program. As the leader in the dedicated managed account industry, Innocap works with investors to increase transparency and control over their assets.
The PGEQ Fund L.P. has more than C$350 million of assets under management as of September 30th, 2022. Borealis is the 10th manager to have joined the program since 2021, adding to the investment talent available to institutional allocators and diversifying investment portfolios with a broad range of traditional and alternative solutions, including various ESG strategies. The QEMP’s impact has been accelerated thanks to a strategic investment last year totalling $110 million from the Government of Québec and some of its initial investors.
About the QEMP
Created in 2016, the QEMP’s mandate is to promote the growth of financial entrepreneurship in Québec by offering institutional investors diversified investment strategies managed by independent Québec-based emerging managers. This project was developed in connection with the work of Finance Montréal’s Entrepreneurship Work Group, in collaboration with established portfolio management firms. The QEMP seeks emerging managers offering traditional strategies (fixed income, Canadian equity, US equity, global equity, sustainable or ESG strategies, etc.) and alternative strategies (hedge funds, sustainable or ESG strategies and real asset funds, etc.). In order to invest in the growth of leading managers of the future, the QEMP encourages allocators, cities and municipalities, pension funds, foundations and universities to join the program. For more information about the QEMP, visit www.qemp.ca or consult our LinkedIn page.
Innocap is the combination of two of the most respected firms in the dedicated managed account industry: Innocap + HedgeMark. Since 1996, Innocap provides institutional allocators a superior way to structure, access and monitor their alternative investments through their platform. Innocap is the leading Dedicated Managed Account Platform in the world with US$49 billion in assets as of August 1st, 2022, >235 funds, >US$900 billion of client assets leveraging their technology. They benefit from solid, committed, and long-term institutional shareholders. Innocap’s team is home to >300 innovative talents and robust financial technology operating from 7 locations worldwide. For more information about Innocap, visit www.innocap.com or consult our LinkedIn page.
About Borealis GAM Inc.
Founded in Montréal in 2019 by two managers with institutional management backgrounds, Borealis is an investment firm specializing in sustainable investing. Applying innovation and technology to fundamental analysis, Borealis targets the dual objective of delivering competitive returns while accelerating the transition to a more equitable and inclusive capitalism, investing in global mid-cap stocks. To learn more about Borealis and its mission, visit /www.borealis-gam.com or consult our LinkedIn page.
Allocators interested in learning more about the QEMP should contact:
Global Head, ESG and Impact Solutions