Parametric hired by the California State Teachers' Retirement System for 'Stabilized Equity' Program
SEATTLE, March 25, 2015 /PRNewswire/ -- Parametric Portfolio Associates LLC ("Parametric"), a subsidiary of Eaton Vance Corp. (NYSE: EV), announced that the firm was recently awarded a $100 million mandate as part of a larger low volatility and covered call program that California State Teachers' Retirement System (CalSTRS) is putting in place in 2015. Parametric's allocation was completed with a pair of $50 million tranches funded in January and February.
CalSTRS' program, named Stabilized Equity, is designed to allocate assets to low-volatility equity strategies with the goal of maintaining equity exposure with less risk. The allocation to Parametric encompasses two parts: equity exposure benchmarked to the S&P 500, along with Parametric's DeltaShift covered call program as an overlay. An additional feature of the equity allocation is that Parametric incorporates social restrictions defined by CalSTRS, including tobacco, firearms and geopolitical considerations.
"This assignment is obviously very exciting for us. We are delighted to work with a sophisticated plan sponsor such as CalSTRS to provide a systematic low volatility equity strategy as a solution to maintaining equity exposure with less risk," reported Brad Berggren, Chief Investment Officer of Parametric's Westport Investment Center, where the options program is managed.
Brian Langstraat, Parametric's Chief Executive Officer, noted that the firm's options-related capabilities and assets under management place Parametric as an industry leading player. "Managed option investing, both as an overlay and in conjunction with diversified equity portfolios, is a strong area of growth for Parametric. We are pleased to have a growing list of institutional, high net worth, and sub-advisory clients in this area."
For their part, CalSTRS Director of Innovation and Risk, Steven Tong said, "The fact that Parametric had demonstrated expertise in both the options implementation and diversified equity management made them an attractive partner for us."
About Parametric
Parametric, headquartered in Seattle, WA, is a leading global asset management firm, providing investment strategies and customized exposure management to institutions and individual investors around the world. Parametric offers a variety of rules-based, risk-controlled investment strategies, including alpha-seeking equity, alternative and options strategies, as well as implementation services, including customized equity, traditional overlay and centralized portfolio management. Parametric is a majority-owned subsidiary of Eaton Vance Corp. and offers these capabilities through investment centers in Seattle, WA, Minneapolis, MN and Westport, CT. As of January 31, 2015, Parametric and its wholly-owned subsidiary, Parametric Risk Advisors LLC, managed $138.1 billion in client assets.
About CalSTRS
The California State Teachers' Retirement System, with a portfolio valued at $185.5 billion as of January 31, 2015, is the largest educator-only pension fund in the world. CalSTRS administers a hybrid retirement system, consisting of traditional defined benefit, cash balance and voluntary defined contribution plans. CalSTRS also provides disability and survivor benefits. CalSTRS serves California's 879,000 public school educators and their families from the state's 1,700 school districts, county offices of education and community college districts. Follow us on Twitter @CalSTRS
SOURCE Eaton Vance Corp.
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