MEASURING AND MANAGING RISK

Substantial risks are incurred in holding concentrated securities, yet the tax cost of their diversification is high. The purpose of this portfolio analysis is to measure the cost/benefit of transitioning an existing portfolio into a Parametric Tax-Managed Core portfolio. In this analysis, we focus on the risks incurred and recommend a level of diversification to help obtain an expected return.

Parametric's Tax-Managed Core strategy is designed to maximize wealth by providing a pre-tax return similar to the chosen index, while minimizing the impact of taxes. The Tax-managed Core solution will attempt to maximize the utilization of stocks within the existing portfolio while balancing the need for diversification and lower risk.

A Parametric Tax-Managed Core portfolio allows an investor's preferences, social concerns, and pre-existing holdings to be taken into consideration—something that is virtually impossible with traditional mutual funds.

To get an idea of how much can be saved (versus the cost of full liquidation) by turning an existing portfolio into a Parametric TMC portfolio, contact Far Salimian at 206.694.5534 / fsalimian@paraport.com. You will be asked to provide - via an Excel file - the following lot-level information for common equities only.

 - Tickers
 - Number of shares
 - Purchase dates (if not available, identify whether short or long-term)
 - Purchase price
 - Additional cash amount (if any)
 - Benchmark choice