Responsible Investing Solution Chalk Drawing

Responsible Investing

Investors are increasingly considering the environmental or social impact of companies. At Parametric, we specialize in implementing the investor’s vision rather than imposing our own views. Explore how we build portfolios that balance responsible investing and return objectives.

Strategy Goals

Responsible investing at Parametric looks beyond stock returns and aims to align clients’ principles with their investment portfolio. As one can imagine, there are as many ways to define environmental, social, and governance (ESG) criteria as there are investors. As a result, Parametric takes a consultative approach to help advisors and their clients design and customize portfolios, incorporating the diverse and evolving set of environmental, social and governance criteria.

Portfolio Construction / Tilt

Emphasize an ESG metric, subject to constraints designed to reduce tracking error. For many accounts, investing in an index or strategy with an existing tilt may be most expedient. In some cases, an account specific, custom tilt on an index or strategy of the client’s choosing may be appropriate.

 

ESG Metric

 

 

Single or comprehensive metric, such as, carbon emissions or ESG score can be targeted

 

Universe

 

 

All constituents of the selected index or strategy eligible for investment in the tilted portfolio, but reweighted

 

Constraints 

 

 

Security, sector, and industry weights, and fundamental factor exposure, relative to original index or strategy, typically considered


Responsible Investing is offered by Parametric Investment & Overlay Strategies.  For additional information please visit the Disclosure page.

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