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Parametric Calvert ESG Defensive Equity Fund

Type: Aligned Investments

Topic: Buildings & Housing, Energy Efficiency, Renewable Energy, Water

Status: Current

Parametric has helped McKnight tilt its newest investments toward companies with positive ratings on environmental, social, and corporate governance (ESG) practices. This may reduce long-term risks.

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$60 million; originated in 2017

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In moving money from hedge funds to a lower-cost defensive equity strategy, McKnight introduced minimal standards of environmental, social, and governance practices. This approach raises the ESG score of the companies in the stock portion of the portfolio materially–and it drops out companies that may be higher risk. The portfolio is then optimized to iron out other “factor biases” that may have been introduced.

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Blended 50% S&P 500 / 50% 3 Month T-BILL

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Lessons Learned

McKnight has found many different opportunities to align its endowment with its economic point of view and its mission across multiple asset classes. Our fund managers have demonstrated repeatedly that they are willing to bring creative, effective solutions to the table in response to a customer’s request.

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Disclaimer of Endorsement: The McKnight Foundation does not endorse or recommend any commercial products, processes, or service providers.

Last updated 3/2020