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 International Equity 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.