Parametric Launches Systematic Alternative Risk Premia Fund
SEATTLE, August 6, 2018 – Parametric Portfolio Associates LLC (Parametric), an affiliate of Eaton Vance Corp., today announced the launch of Parametric Research Affiliates Systematic Alternative Risk Premia Fund (Institutional Class: ESATX). The Fund is co-managed by two Parametric investment professionals: Thomas Lee, Managing Director of Investment Strategy & Research, and Christopher Haskamp, Senior Portfolio Manager. Eaton Vance Management is the Fund’s investment adviser and Parametric serves as the Fund’s subadviser. Research Affiliates, LLC (Research Affiliates) also subadvises the Fund on a nondiscretionary basis.
The Fund’s investment objective is total return. The Fund seeks to provide market exposures across four asset classes – equities, fixed income, commodities and currencies – by taking long and short positions in derivative instruments. “Risk premia” are the returns assets are expected to generate in excess of the return of a risk-free investment as compensation for taking risk. The Fund’s strategy focuses on so-called alternative risk premia that are not commonly considered in the management of portfolios investing primarily in securities on a long-only and unlevered basis. Various factors are drivers of risk premia. The Fund seeks to generate positive returns from exposure to carry, value and momentum factor risk premia. Depending on market conditions, the Fund may also seek to generate positive returns from exposure to the equity volatility factor risk premium.
“Our systematic, disciplined approach incorporates factors extensively studied by Research Affiliates that we believe are exploitable across all asset classes,” said Mr. Lee. “We are excited for the opportunity to deliver a strategy that is expected to exhibit low correlation to traditional assets and offers the potential to capture meaningful excess total returns with broad diversification.”
Shane Shepherd, Ph.D., Director of Research, Research Affiliates explained, “With low return prospects across most asset classes, diversifying return drivers becomes increasingly important. Our goal with systematic alternative risk premia is to deliver strong uncorrelated returns in excess of cash within a relatively transparent strategy.”
Parametric, a subsidiary of Eaton Vance Corp., is a leading systematic asset manager focused on delivering elevated, transparent, repeatable investment outcomes by bringing clarity and accessibility to investment science. Parametric's solutions apply ingenuity and scientific rigor to manage risks and controls costs across three main categories: better beta, nontraditional alpha and efficient portfolio implementation. As of June 30, 2018, Parametric managed $231.3 billion assets on behalf of institutions, high-net-worth individuals and fund investors in the U.S. and internationally. Parametric operates from investment centers in Seattle, WA, Minneapolis, MN and Westport, CT. For more information, visit parametricportfolio.com.
Research Affiliates, LLC, is a global leader in smart beta and asset allocation. Founded in 2002 and based in Newport Beach, California, Research Affiliates is dedicated to creating value for investors and seeking to have a profound impact on the global investment community through its insights and products. The firm’s investment strategies are built on a strong research base and are led by Rob Arnott and Chris Brightman. Research Affiliates delivers solutions in partnership with some of the world’s leading financial institutions through its offerings of mutual funds, ETFs, separately managed accounts and/or commingled accounts. As of June 30, 2018, about $197 billion in assets are managed worldwide using investment strategies developed by Research Affiliates.
Eaton Vance Corp. (NYSE: EV) is a leading global asset manager whose history dates to 1924. With offices in North America, Europe, Asia and Australia, Eaton Vance and its affiliates managed $441.1 billion as of June 30, 2018, offering individuals and institutions a broad array of investment strategies and wealth management solutions. The Company’s long record of providing exemplary service, timely innovation and attractive returns through a variety of market conditions has made Eaton Vance the investment manager of choice for many of today’s most discerning investors. For more information about Eaton Vance, visit eatonvance.com
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About Risk: Investing in or having exposure to momentum, value and carry risk premia strategies involves the risk that there may be periods during which the investment performance of the Fund while using the risk premia strategies may suffer. The Fund’s exposure to derivatives involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other investments. Derivatives instruments can be highly volatile, result in leverage (which can increase both the risk and return potential of the Fund) , and involve risks in addition to the risks of the underlying instrument on which the derivative is based, such as counterparty, correlation and liquidity risk. If a counterparty is unable to honor its commitments, the value of Fund shares may decline and/or the Fund could experience delays in the return of collateral or other assets held by the counterparty. Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical, currency exchange rates or other conditions. The use of leverage may cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or to meet segregation requirements. Leverage may cause the Fund to be more volatile than if it had not been leveraged, as certain types of leverage may exaggerate the effect of any increase or decrease in the value of the Fund’s portfolio securities. The value of commodity investments will generally be affected by overall market movements and factors specific to a particular industry or commodity including weather, embargoes, tariffs, or health, political, international and regulatory developments. No Fund is a complete investment program and you may lose money investing in a Fund. The Fund may engage in other investment practices that may involve additional risks and you should review the Fund prospectus for a complete description.
Before investing, investors should consider carefully the investment objectives, risks, charges and expenses of the Fund. This and other important information is contained in the prospectus and summary prospectus, which can be obtained from a financial advisor. Prospective investors should read the prospectus carefully before investing.
The Fund is distributed by Eaton Vance Distributors, Inc., Two International Place, Boston, MA 02110. Member FINRA/SIPC.