Parametric Portfolio Associates LLC (“Parametric”), a majority owned subsidiary of Eaton Vance Corp. (NYSE:EV) and a participant at the All In For Impact conference (#AllinForImpact) in Colorado Springs, announced the creation of two new proprietary responsible investing strategies, Parametric ESG Domestic and Parametric ESG International.
These strategies are designed to provide exposure to companies that score well on environmental, social, and governance (ESG) metrics, according to Sustainalytics, a global responsible investment research firm specializing in ESG research and analysis, while providing greater risk control than might be available in comparable indices. Starting with a universe of stocks from the S&P 500 and MSCI EAFE Indexes (the Indexes), Parametric uses an optimization process to overweight companies with above average ESG scores.
Jennifer Sireklove, Senior Investment Strategist, has been named to lead the responsible investing effort at Parametric. In addition to the ESG strategies, Ms. Sireklove has developed a range of strategies for faith-based and environmental investors over the last year, as well as introduced social justice focused screening capabilities. Prior to joining Parametric in 2013, she spent more than a decade doing equity and academic research, with a focus on the energy, industrial and utility sectors.
Ms. Sireklove explains,
Parametric ESG strategies are constructed to provide higher exposure to companies with favorable ESG ratings and to tightly control fundamental risk factors relative to the Indexes to limit unintended bets. The strategies are also designed to be amenable to tax management, so taxable clients can receive the added benefits of loss harvesting and capital gain deferral.
Parametric has been managing responsible investing portfolios by applying social screens or tilts to index-based portfolios for over 15 years. In addition to the new ESG strategies, Parametric recently added licensed screens for fossil free, Catholic values, Shariah compliant and other environmentally and socially-focused portfolios.
Paul Bouchey – CIO, Parametric Seattle Investment Center, adds,
The Parametric ESG strategies are the next step in the continuing expansion of Parametric’s responsible investing solutions. The strategies offer a practical way for investors to incorporate their values into a portfolio while adhering to our principles of efficiency and diversification.
Parametric, headquartered in Seattle, WA, is a leading global asset management firm, focused on the delivery of engineered portfolio solutions, including rules-based alpha-seeking equity, alternative and options strategies, as well as implementation services including custom core equity, futures overlay and centralized portfolio management. As of September 30, 2015, Parametric manages approximately $144.4 billion in total assets on behalf of institutions, high-net-worth individuals and fund investors in the U.S. and internationally. Parametric is a majority-owned subsidiary of Eaton Vance Corp., and its principal investment centers are located in Seattle, WA, Minneapolis, MN, and Westport, CT.
Eaton Vance is one of the oldest investment management firms in the world, with a history dating to 1924. Eaton Vance and its affiliates managed $298.9 billion in assets as of September 30, 2015, offering individuals and institutions a broad array of investment strategies and wealth management solutions. The Company’s long record of providing exemplary service, timely innovation and attractive returns through a variety of market conditions has made Eaton Vance the investment manager of choice for many of today’s most discerning investors.