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Developed Non-US

Our Developed Non-US Strategy is designed to provide all-cap exposure to countries with the potential to outperform the index with less volatility and an emphasis on low beta securities. Our investment process is based on mathematical principles of diversification, compounded growth, and volatility capture. 

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 portfolios’ 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 Developed Non-US Strategy employs 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 capitalization-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. An emphasis on low beta stocks and the inclusion of small-cap securities seeks to further reduce portfolio volatility. 

How to invest and related products

The Parametric Developed Non-US Strategy is designed to be implemented in a separately managed account (SMA) maintained by a qualified custodian. Investors should contact their financial advisor to establish an SMA. Parametric also subadvises funds with a similar strategy, offered and distributed by our affiliate, Eaton Vance Distributors Inc., a registered broker-dealer.
Learn more*

*We provide a link to the Eaton Vance website for your convenience only. It is for informational purposes only and is not an offer to buy or sell any security. Although Parametric is an affiliate of Eaton Vance, Parametric does not administer the website or control any of its content. Accordingly, this link is provided as is, without representation or warranty, express or implied, as to the accuracy of such content or its completeness or timeliness, all of which (including, without limitation, any implied warranties of merchantability or fitness for a particular purpose) Parametric expressly disclaims. This link’s appearance on Parametric’s website should not imply our endorsement of the linked site or its content. Parametric is not responsible for your use of the linked site, its content, or any other resources (including, without limitation, other linked sites and their contents) accessible through it. If you choose to leave this website and visit the linked site, you will be subject to its terms of use and privacy policies. By continuing to the linked site, you acknowledge and agree to the foregoing.

Investing in a commodities strategy has certain risks. The value of commodities investments will generally be affected by overall market movements and factors specific to a particular industry or commodity, which may include weather, embargos, tariffs, health, and political, international, and regulatory developments. Economic events and other events (whether real or perceived) can reduce the demand for commodities, which may reduce market prices and cause their value to fall. The use of derivatives can lead to losses or adverse movements in the price or value of the asset, index, rate, or instrument underlying a derivative due to failure of a counterparty or due to tax or regulatory constraints.

For additional information please visit the Disclosure page.

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