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Sept. 25, 2013 /PRNewswire/ -- Parametric Portfolio Associates LLC ("Parametric"), a subsidiary of Eaton Vance Corp. (NYSE: EV), today announced the launch of Parametric Balanced Risk Fund (Class A: EAPBX, Class I: EIPBX), a mutual fund that seeks its objective of total return utilizing a risk parity strategy. Eaton Vance Management is the Fund's investment adviser and Parametric serves as the Fund's sub-adviser. The Fund is managed by
Jack Hansen, Chief Investment Officer of The Clifton Group, and
Thomas Lee, Senior Portfolio Manager of The Clifton Group. The Clifton Group is a division of Parametric.
Parametric Balanced Risk Fund intends to incorporate investments representing a broad spectrum of major asset class risk allocations, including global equity, global real estate, global credit spreads, diversified commodities, global nominal bonds, inflation bonds, precious metals and volatility.
Portfolio allocation is driven by the long-term expected volatility of each asset class. The portfolio managers seek to maintain a substantially equal level of risk contribution from each of the major asset classes, with periodic rebalancing if exposure weights exceed established thresholds.
"In volatile markets, we believe that investors look for strategies to diversify and protect themselves systematically against market risk," said Hansen. "This new fund offers individual investors access to our risk parity strategy, an approach that had been offered only to the institutional market."
The Clifton Group, widely recognized as a leading institutional manager of derivatives-based investment strategies, was acquired by Parametric in
December 2012. Parametric Balanced Risk Fund is the first fund managed at Clifton to be made available to individual investors.
Parametric, a subsidiary of Eaton Vance Corp., focuses on the delivery of customized portfolio solutions, including rules-based alpha-seeking equity, alternative and options strategies, as well as implementation services including tax-managed core equity, futures overlay and centralized portfolio management. As of
July 31, 2013, Parametric, and its registered investment adviser affiliate, Parametric Risk Advisors, LLC ("PRA"), managed approximately
$107.2 billion in total assets on behalf of institutions, high-net-worth individuals and fund investors domiciled in the U.S. and internationally. Parametric investment centers include
Minneapolis, MN and
Westport, CT (PRA office). For more information about Parametric, visit parametricportfolio.com.
Eaton Vance is one of the oldest investment management firms in
the United States, with a history dating to 1924. Eaton Vance and its affiliates managed
$268.8 billion in assets as of
July 31, 2013, 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.
About Risk: Fund share values are sensitive to stock market volatility. Investments in income securities may be affected by changes in the creditworthiness of the issuer and are subject to the risk of non–payment of principal and interest. The value of income securities also may decline because of real or perceived concerns about the issuer's ability to make principal and interest payments. The value of commodities 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. Investments in foreign instruments or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical or other conditions. In emerging countries, these risks may be more significant. The value of foreign currencies as measured in U.S. dollars will fluctuate and may be unpredictably affected by changes in foreign currency rates and exchange control regulations, application of foreign tax laws, governmental administration of economic or monetary policies, intervention by U.S. or foreign governments or central banks, and relations between nations. Interest payments on inflation-linked securities may vary widely and will fluctuate as principal and interest are adjusted for inflation. Investments in inflation-linked securities may lose value in the event that the actual rate of inflation is different than the rate of the inflation index. Changes in real estate values or economic downturns can have a significant negative effect on issuers in the real estate industry, including REITs. Derivatives instruments can be used to take both long and short positions, be highly volatile, result in economic leverage (which can magnify losses), 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. Borrowing to increase investments (leverage) will exaggerate the effect of any increase or decrease in the value of Fund investments. As interest rates rise, the value of certain income investments is likely to decline. The Strategy has not been independently tested or validated, and there can be no assurance that it will achieve the desired results. To the extent that the actual volatility of an asset class differs from its historical performance, the Fund may not perform as intended. The value of assets held by the Fund may increase or decrease significantly over short periods of time. This may cause the Fund's net asset value per share to experience similar changes in value over the short term. 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.