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The Canada Life Assurance Co. has launched a new suite of sustainable target date funds.

The Canada Life Sustainable Target Date Funds — which the firm said are the first of their kind in the Canadian group plan marketplace — are segregated funds that look to invest in companies with strong ESG practices.

Investing in companies that demonstrate robust ESG practices is becoming more important to institutional investors.

“We recognize our members are looking to invest in a way that aligns with their values, without sacrificing returns,” said Brad Fedorchuk, executive vice-president of group customer at Canada Life, in a statement.

The actively managed funds are sub-advised by J.P. Morgan Asset Management and are available through a group variable annuity policy issued by Canada Life.

The launch of the target date funds come more than two months after Canada Life launched three sustainable mutual fund portfolios.