Strategy Overview

No single set of values applies to all investors. Unfortunately, many socially responsible investing (SRI) products are one-size-fits-all portfolios with high fees, poor performance, and ambiguous risk profiles. There is a better way.

Aperio’s Socially Responsive Indexing strategy represents the next generation of SRI investing for institutions and high-net-worth individuals. It starts with respect—respect for the diversity of client values. We don’t force personal beliefs and institutional ideals into cookie cutter products.

Our SRI methodology is based on a consultative design process where we help each client define their unique set of social and ethical investment choices. We build customized portfolios that integrate these preferences and optimize the permitted stocks to selected benchmarks such as the Russell 3000 and MSCI ACWI. Clients receive the performance and cost advantages of indexing with customization that satisfies their social philosophy.

Our strategy uses separately managed accounts (SMAs) and employs state-of-the-art social scoring techniques that translate qualitative principles into a clear and well-defined quantitative investment plan. We vote proxies in a manner consistent with expressed values and update social scores to ensure these values are maintained in the portfolio over time.

Aperio’s SRI strategy maximizes the expression of a client’s worldview without compromising the power of indexing. When put to work for institutions and high-net-worth individuals, Aperio’s approach means no longer settling for sub-par results or accepting someone else’s interpretation of your values.

“In a sharp break from past practice, major charitable foundations are initiating or strengthening efforts to harmonize the social and environmental effect of their endowment investments with their philanthropic goals.”

– Charles Piller, Los Angeles Times, December 2007

What matters?

Great environmental record? In line with your religious values?  Good corporate governance? No tobacco? Tell us what’s important to you, and we’ll customize your portfolio to match.