Parametric International: Why Screen on Beta? | Parametric Portfolio
Why Screen on beta

 Parametric International: Why Screen on Beta?

The Parametric International Equity strategy seeks better exposure to developed international markets by focusing on diversification at the country, sector, and security levels. By reducing concentrations at the country and sector level and then emphasizing low-beta names within each country-sector combination, we build a portfolio that balances the benefits of diversification (higher returns, lower volatility) with the implementation realities encountered in the developed markets.

In this research brief we focus on beta not as a predictor of which stocks will enjoy higher future returns but as a portfolio construction tool that works to reduce risk and derive excess returns from diversification and rebalancing.

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Tim Atwill
Tim Atwill, PhD, CFA

Head of Investment Strategy

 

 

Tim Atwill
Tim Atwill, PhD, CFA
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