STRUCTURED FOR SUCCESS

Our observations and experience lead us to an investment philosophy and approach we call structured portfolio management. Parametric portfolio managers act as investment "engineers," quantitatively creating portfolios with explicit risk and return targets and continually measuring and managing the impact of relevant costs.

Tax-Managed Core
Parametric Tax-Managed Core portfolios are equity separate accounts that target a client-designated index. They provide the consistent performance and diversification of index-based investing with active tax management and per-client customization. Many investors create TMC portfolios to target broad-market, capitalization-weighted indexes such as the S&P500®, Russell 3000®, or MSCI EAFE®. In addition, Parametric regularly creates varied and sophisticated TMC portfolios targeting market segments (small/mid blends), yield targets, and specialized third party benchmarks such as the KLD Domini 400 Social Indexsm or the FTSE RAFITM.

Structured Emerging Markets
In 1994, Parametric created a proprietary and unique process for structuring a portfolio seeking long -term exposure to the equity markets of developing countries. The result is our Structured Emerging Markets Strategy. Diversification, disciplined rebalancing, and cost control are the hallmarks of this successful approach.

DeltaShift
For investors who hold a concentrated stock position, Parametric offers a managed covered call writing program which seeks to improve total return and enhance income. DeltaShift is a transparent, consistent investment methodology with a focus on client goals, efficient operational processes and yield enhancement.

A structured approach is a scientific approach; we are suspicious of intuitions (ours included) and seek quantifiable tests wherever possible. We emphasize consistency of results, transparency of process, and we routinely tailor portfolios to the unique needs of each investor.

The supporting evidence is powerful: structured portfolio management has shown that it can, on its own and in combination with traditional active strategies, improve an investor's real return and, consequently, increase an investor's probability of success.

Structure is inherent in everything we do. This approach is not only the heritage of our company, but the fundamental concept that drives us, today and in the future.

 
Every Parametric product strives to be:
  • Precise: Sophisticated investors must reconcile many different variables. Parametric analyzes and optimizes for the most relevant elements, delivering a powerful solution.
  • Collaborative: A good investment is never created in a vacuum. Every Parametric offering is developed via highly collaborative partnerships. As one investor described it, "Parametric wants to hear about your problem because it's their next product."
  • Inventive: We don't believe it's enough to be satisfied with today's answer. We are constantly researching, testing, and applying new knowledge in the field of investment management.