International Equity
For institutional investors
Parametric's International Equity is designed to efficiently capture the long-term returns of developed international equity markets while avoiding both the return risks of active management and the concentration risks of mainstream international equity indexes.
International Equity seeks to outperform the MSCI EAFE Index over three to five years. International Equity emphasizes broad exposure with diversification among countries, economic sectors, and individual securities. Central to this investment approach are long-term strategic country and sector allocations, disciplined rebalancing, and broadly diversified individual holdings. Our transparent, repeatable process provides greater insights into your holdings.
There is no guarantee that the investment objective will be achieved. The targeted return is hypothetical and should not be relied upon to make investment decisions. The targeted return is aspirational in nature and is not based on criteria and assumptions. All investments are subject to the risk of loss. See disclosures for additional information.
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Why choose Parametric?
Engineered and disciplined approach
Parametric believes that broadly diversifying, avoiding concentrations, and portfolio rebalancing are all key aspects to managing risk and driving thoughtful investment decisions. By diversifying at the country and sector levels, then emphasizing low-beta names within each country-sector combination, Parametric builds a portfolio designed to balance the benefits of diversification with the market conditions present in the international equity markets.
How it works
Parametric’s International Equity Strategy uses a rules-based portfolio construction approach that consists of these steps:
Intended benefits of International Equity
Lower volatility
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While developed non-US equities may demonstrate heightened volatility, they do so against a backdrop of rising prices. Managing this volatility by diversifying is a key aspect of the investment philosophy.
Consistent exposure
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Our process reduces exposure to concentrated areas of international markets, reweighting away from large countries to create a more diversified portfolio.
Long-term growth capture
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Our International Equity Strategy relies on a rules-based approach, coupled with a rebalancing discipline, to reduce concentrations and emphasize diversification in pursuit of its capital appreciation objective.
Transparent, repeatable outcomes
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Top-down portfolio construction doesn’t rely on market forecasts or behavioral biases. Our implementation focuses on disciplined rebalancing, resulting in a “buy low/sell-high” methodology.