January 2019 Edition

Despite recent concerns, the global economy fared very well in 2018. The annual growth of global real GDP should reach 3.8% for the year, its highest increase since 2011.

Find more highlights in the Economic & Financial Outlook published on December 18, 2018 by Desjardins Group’s Economic Studies team External link. Opens in a new window., winner of the FocusEconomics Best Economic Forecaster Award in 2017 and 2018. You can also subscribe External link. Opens in a new window. to receive these publications by email.

Desjardins Insurance has been showcased in the media a number of times over the past few months. Our expertise and the distinctive elements of our group plans were highlighted in an article in The Globe & Mail External link. Opens in a new window.. Desjardins Insurance leaders in group retirement savings and group and business insurance, David Charbonneau and Josée Dixon, were also featured in the Performers series of Benefits Canada Lien externe au site. S’ouvre dans une nouvelle fenêtre.. They joined forces to showcase the importance of working in the best interests of plan members to help them achieve overall wellness. Personal health and financial wellness go hand in hand and the articles demonstrate the benefit of our innovative solutions and working closely with you, plan sponsors.

As announced in the December edition of The Essential, we’re pleased to announce the release of our first educational video, available in English and in French. It shows how RRSP contributions made during the first 60 days of the year can be deducted from either the current year’s or the previous year’s income—all in less than a minute and a half. It was posted in the Messages section of the Participant services site on January 9. A few days later, an email was sent to all RRSP holders.

Educational video about RRSP contributions

January 1, 2019 (1 min 24 s)

The video uses plain language, a light and clear structure and sleek graphics to get the point across.

Would you like to promote our educational videos? Contact your Client Relationship Manager or Plan Sponsor Services. We’d be more than happy to share the video so you can post it on your intranet or cafeteria television, or include it in your newsletter.

In early February, a second video will be released, explaining the rules and benefits of the HBP. It will be emailed to RRSP holders and posted in the Messages section of the Participant services site.

Our plan members’ financial wellness matters to us, so we’ve developed an approach that’s in their best interests. For some time, our group retirement savings team has been making changes to clarify and simplify financial information. Every day, we try to deliver understandable, comprehensive and relevant information that will help our plan members focus on planning for their retirement—not deciphering financial jargon.

Encourage your members! Please print this poster and put it up where employees can see it to promote the contest. Two formats are available, in English 8.5 x 11 in (PDF, 736 KB) Opens in a new window. or 11 x 17 in (PDF, 1.4 MB) Opens in a new window. and French 8.5 x 11 in (PDF, 717 KB) Opens in a new window. or 11 x 17 in (PDF, 1.3 MB) Opens in a new window..

How to win: Members have to watch their personalized video or update their information in On Target Retirement^® at dfs.ca/participant External link. Opens in a new window., between December 1, 2018, and March 1, 2019. Once they do, they’ll automatically be entered in the contest. This contest includes three draws: January 7, February 7, and March 7, 2019. At each draw, we will select one winner who will receive a prize of $1,000. This contest is open to all Desjardins Insurance group retirement savings plan members1.

How is the video personalized? The script is based on each member’s unique situation. From the information available in On Target Retirement^®, Penny (our virtual guide) gives personalized tips to achieve financial wellness. She suggests what members can do to get closer to their financial goals.

Good luck to everyone!

If you are a pension plan administrator of a Defined Contribution (DC) pension plan, you are required to produce and transmit to your governmental regulatory authority an annual information return (AIR) no later than six months after the end of your fiscal year.

If Desjardins Insurance has not been given the mandate to produce your 2018 AIR, but you would like us to do so, email us at grs_plansponsor@dfs.ca. If your fiscal year-end is December 31, you must make your request before April 1.

Desjardins Insurance will process the request within the prescribed time frame, and send you instructions on the next steps you will need to take to complete the process with the Office of the Superintendent of Financial Institutions (OSFI) or your provincial regulatory authority, as applicable.

Depending on your contract with Desjardins Insurance, a fee may be charged for this service.

For more information, contact your plan administrator or call the Plan Sponsor Service Centre at 1-888-510-4762 This link will launch your default phone software..

Desjardins Insurance is proud to announce the launch of four new responsible investment funds on its group retirement savings platform on January 30, 2019. These funds, which are presented below, will enhance our responsible investment offer. They will also be made available in the Foresight and caisse offers.

Desjardins Responsible Fixed Income Fund

This fund is composed of a portfolio of actively managed underlying funds that aims to reconcile the implementation of responsible investing principles with the achievement of competitive financial performance, in the form of current income and some long-term capital appreciation. The underlying funds are selected within our Desjardins SocieTerra funds offer. This fund invests in different funds comprised of Canadian and foreign fixed income securities traded on public markets and issued by government entities and corporations. These funds bring to the forefront the integration of environmental, social and governance (ESG) factors into investment selection and management, in some cases through a focus on specific sustainable development approaches or objectives.

Desjardins Responsible Growth Fund

This fund is composed of a portfolio of actively managed underlying funds that aims to reconcile the implementation of responsible investing principles with the achievement of competitive financial performance, primarily in the form of long-term capital appreciation. The underlying funds are selected within our Desjardins SocieTerra funds offer. This fund invests in different funds comprised of Canadian and foreign equity securities traded on public markets. These funds bring to the forefront the integration of environmental, social and governance (ESG) factors into investment selection and management, in some cases through a focus on specific sustainable development approaches or objectives.

Desjardins SocieTerra Environmental Bond (Mirova)

DGIA is the portfolio manager for this fund and Mirova, an asset management company dedicated to responsible investment, is the sub-portfolio manager. This actively managed fund aims to provide steady income with some long-term capital growth by investing primarily in environmental bonds from sovereign and corporate issuers. The manager favors bonds aimed at financing projects that have a positive impact on the environment. The manager may also invest in bonds issued by companies that support energy and ecological transition, including renewable energies, green technologies and sustainable transport.

Desjardins SocieTerra Cleantech Equity (Impax)

DGIA is the portfolio manager for this fund and Impax, an asset management company specializing in resource optimization and responsible investment products, is the sub-portfolio manager. This actively managed fund aims to provide long-term capital growth by investing primarily in shares of companies that operate in the cleantech sector throughout the world, including emerging markets. The manager looks for sustainable returns by investing in the securities of undervalued corporations at least 50% of whose revenues, sales, profits and investments are directly related to cleantech and resource optimization activities. These are mainly companies with growing revenues and with a business model that focuses on energy efficiency, renewable energy, waste management, pollution control, water management, sustainable agriculture and environmental management.

For more details about the allocation of the Desjardins Responsible Fixed Income and Desjardins Responsible Growth Funds, please refer to the Plan Sponsor Services website at dfs.ca/plansponsor External link. Opens in a new window.. For more information about these new funds, do not hesitate to communicate with your client relationship advisor.

DGIA now has a new institutional corporate credit analyst in the Credit and Private Placements team within the Fixed Income group. Her name is Marie-Michèle Brault, and she was already part of the Desjardins family, working as an analyst position in the Financing Solutions Department, where she was responsible for lending portfolios for various medium-sized companies.

You will now be able to obtain Investment Info Bulletins directly from the Investment section of the Plan sponsor services website.

You can also visit the Desjardins Life Insurance website to see how our funds are performing. Click here to see the rates of return.