Stock Market Ticker

International Equity

Our International Equity strategy is designed to provide all-cap exposure to countries with the potential to outperform the index with less volatility and a focus on low beta securities. By systematically rebalancing at the country and sector level, we seek to capture a premium.

Strategy Goals

Parametric’s Systematic Alpha strategies are broadly diversified and dynamically rebalanced portfolios designed to outperform capitalization-weighted approaches over the long term with less risk. Diversification is established via a system of portfolio target weights. As market forces move the portfolio’s holdings away from the target weights, diversification is re-established via a trigger-based rebalancing process. Our active reweighting and rebalancing have the potential to generate excess returns.  Parametric’s experience constructing and managing portfolios for over 25 years has informed and enhanced the development of our Systematic Alpha strategies.  

The Parametric International Equity strategy is a broadly-diversified equity investment process designed to efficiently capture the long-term returns of developed international equity markets.  The strategy uses the MSCI EAFESM Index as the benchmark and emphasizes broad exposure and diversification among countries, economic sectors and individual issuers through disciplined portfolio construction.

Investment Philosophy

 

The Strategy

 

The strategy offers a core exposure to overseas developed international markets as defined by the MSCI EAFESM Index. The strategy’s top-down process seeks excess returns and lower volatility than cap-weighted indexes. 

 

The Approach

 

Parametric uses a rules-based, disciplined portfolio construction method to outperform benchmarks without market forecasts. Instead, the strategy seeks the benefits of greater diversification which can result in both higher returns and lower volatility. 

 

The Features

 

The strategy maintains exposure to three distinct alpha drivers via diversification targets at the country, sector, and security level. Emphasis on low beta stocks and the inclusion of small cap  securities seeks to further reduce portfolio volatility.

International Equity is offered by Parametric Investment & Overlay Strategies.  For additional information please visit the Disclosure page.

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