Delivering World Equities with Impact While Satisfying NextGen Daughter and Sophisticated Investment Consultant

Client told her consultant: “When I look at my portfolio I want to see companies that will change the world!”  Aperio worked with the investor and her consultant to create a customized strategy that met her social and impact criteria while tracking the MSCI World Index.

Challenge

The consultant needed to balance his client’s desire to make a difference with her wealth with his fiduciary responsibility to ensure the highest net return on a risk-adjusted basis.

Aperio Solution

Aperio, working with her investment consultant, helped the client more clearly articulate what types of impact she was seeking.  Her interests were focused on companies that were involved in developing products and services that would reduce negative human impact on the environment and would allow for more sustainable choices.  Aperio created a universe of companies meeting her social and impact criteria, and then using an optimizer created a portfolio that closely mimics the MSCI World Index.

Impact

Client invested $20m in a core equities strategy tracking the MSCI World index with less than 3.0% tracking error. The NextGen daughter got a more impactful core equity portfolio and the consultant ensured a transparent methodology with a market-tracking return and comparable risk.

Footnote

Subsequent to the implementation of this customized strategy, Aperio Group developed the Global Environmental Impact strategy.  For more information on this strategy, please contact us.