Global asset manager Eaton Vance has launched an equity fund aimed at reducing volatility over the long term.
The Eaton Vance International Parametric Global Defensive Equity fund, a Ucits fund domiciled in Ireland, invests in defensive equities and aims to provide absolute and risk-adjusted performance relative to the MSCI All Country World Total Return index “over the long term”, the firm says.
The fund, which has $70m of seed money, tries to capture the volatility risk premium by selling equity index options.
The fund is managed by chief investment officer Jack Hansen, managing director Thomas Lee, and Alex Zweber, a portfolio manager of Parametric’s Minneapolis Investment Center, the investment adviser for Eaton Vance.
Hansen says: “Given ongoing uncertainty in the global markets, we are pleased to offer clients a strategy that follows a disciplined and systematic process which is structured to deliver results in down and sideways markets. We believe this may help clients reduce the magnitude of drawdowns and recover faster from stress events.”
The Ucits fund is a sub-fund of Eaton Vance International (Ireland) Funds.