Parametric Commodity Strategy

Parametric Commodity Strategy

Parametric Commodity Strategy

 
 
Summary

Parametric’s Commodity Strategy uses a unique portfolio construction process that seeks to provide greater diversification than traditional commodity benchmarks. The strategy may meet investors’ needs by seeking to efficiently and consistently capture the diversification and inflation-fighting goals of the commodity asset class without incurring the return risks of fundamental active management or the concentration risks of mainstream commodity indexes.

 
 
Investment Approach
Philosophy

Parametric employs an investment approach that relies on thoughtful portfolio construction as a source of return, rather than market forecasts. We seek to avoid concentrations that occur in mainstream commodity indices by investing across multiple commodity types and sectors, including a material allocation to non-index commodities. The result is a diversified, consistent and long-only exposure that seeks to deliver the strategic benefits of the asset class. Institutional investors have access to a variety of investment vehicles designed to support their plan’s objectives and risk tolerance.

 
Differentiators
  • Generates performance through portfolio-construction techniques and not through any reliance on forward-looking, relative value judgments on the underlying commodities
  • Broad and long-only exposure to commodities increases the probability of capturing inflationary pressures
  • Pure-play commodity strategy-low-risk collateral management and no exposure to commodity-related equities
 
 
 
Investment Process
Investment-Process-Commodity