Socially Responsible Investing
Socially responsible investing (SRI) is the practice of investing in a way that combines social change with performance returns. Parsec does this by evaluating a company’s environmental, social and corporate governance standards, denoted by the acronym ESG.
Engage in socially responsible investing (SRI) with a Parsec SRI portfolio, an equity- and fixed-income portfolio combined to create any desired asset allocation while selecting companies using a socially responsible screening process and funds with a social or sustainable mandate.
For individual stocks, the Parsec research team utilizes the existing securities covered by its due diligence process and uses an additional filter from an external provider, Sustainalytics, which prepares and monitors reports on a multitude of issues on more than 7,000 companies worldwide and scores these companies on a variety of metrics. Ratings are prepared in each category (Environmental, Social, Governance), with offsetting deductions for any controversies in each category. An overall ESG score is also calculated. The Parsec team then uses these ratings to focus on stocks in the top 50% relative to their sector peers. Parsec managed $120.4 million in its SRI stock model as of July 6, 2022.
Mutual funds and ETFs are selected using Parsec’s standard screening process among funds with a social or sustainable mandate, or an above-average sustainability rating as defined by Morningstar. Parsec managed $34.7 million in its SRI fund model as of July 6, 2022.
Parsec’s SRI portfolio includes proxy voting from Egan-Jones, an independent provider of global governance services. They analyze proxy issues and vote proxies using their “Socially Responsible Investing” guidelines at no additional cost to the client. If a client has a question on how his or her shares have been voted or will be voted on a specific issue, Parsec advisors can provide this information. The complete set of voting guidelines is available upon request.
Existing clients should contact their Parsec advisor to further discuss this new portfolio.
For new clients, we have two financial advisors on staff who specialize in socially responsible investing and understand your socially conscious priorities in order to provide you with this customized SRI portfolio.
Please note that our entry-level service is $600 quarterly, plus an additional fee for any assets that Parsec manages. This additional fee follows Parsec’s standard fee schedule, with a 50% discount on the first $500,000 in assets.
Socially Responsible Investing (SRI, also known as Environmental, Social Governance – ESG) strategies prioritize ESG criteria over other investment criteria. As a result, such strategies will be more limited in the number and types of investments available and may perform differently than strategies that do not screen for ESG factors. Socially responsible investing is qualitative and subjective by nature, and there is no guarantee that the criteria utilized, or judgment exercised, by Parsec Financial will reflect the beliefs or values of any one investor. Socially responsible norms differ by region. There is no assurance that the socially responsible investing strategy and techniques employed will be successful. Past performance is not a guarantee or reliable indicator of future results.
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