Expands from equity separate accounts to fixed income portfolios
SEATTLE, July 27, 2020 – Parametric Portfolio Associates LLC (Parametric), an affiliate of Eaton Vance Corp. (NYSE: EV), today announced the launch of Parametric Custom Core® Fixed Income individual separate accounts. Custom Core Fixed Income portfolios provide advisors and their clients with exposure to the fixed income markets they select, combining the benefits of index-based portfolio construction, active credit oversight and direct ownership of securities. Like Custom Core Equity portfolios, Custom Core Fixed Income portfolios can be customized to reflect each client’s individual responsible investment criteria and other desired portfolio tilts and inclusions, to incorporate the client’s pre-existing securities holdings and to harvest tax losses on a year-round systematic basis.
These bespoke benchmark-based separate accounts compete against index exchange-traded funds (ETFs) and index mutual funds across a range of applications on the basis of enhanced tax efficiency, increased client control over portfolio construction and management, and the avoidance of pass-through fund operating and trading costs. Parametric’s Custom Core Fixed Income portfolios also provide the potential benefits of active credit oversight and direct access to fixed income market liquidity.
“Advisors and investors are increasingly seeking customized solutions across their full portfolios. As a pioneer of equity separate accounts, we’re pleased to expand Parametric's Custom Core benchmark-based separate account offerings to fixed income portfolios,” said Brian Langstraat, Chief Executive Officer, Parametric. “The extensive customization potential of Custom Core helps advisors meet the unique needs of their clients, especially in today’s turbulent market environment where investors are acutely concerned about income protection and liquidity. Custom Core’s proprietary technology, customization capabilities and client reporting tools deliver scalable solutions to make advisors’ jobs easier.”
Custom Core Fixed Income portfolios are managed by Parametric’s team of 45 fixed income professionals, led by James H. Evans, CFA, Chief Investment Officer, Fixed Income. The team has been developing portfolio construction algorithms during the past several years to bring Custom Core’s advantages to bond investors offering strategies managed against the corporate, government/credit and broad fixed income bond indices.
“Custom Core Fixed Income applies a hybrid investment approach using forward-looking credit analysis and rules-based portfolio construction,” said Tom Luster, Managing Director, Taxable SMA Strategies. “This enables Parametric to manage a portfolio’s systematic risk and deliver cost-effective, customized investment solutions for every investor’s unique needs.”
Parametric draws on decades of experience to develop scalable income investment strategies that utilize state-of-the-art technology to seamlessly integrate traditional credit research, quantitative risk factors analysis and specialized trading. As of June 30, 2020, Parametric managed $47.6 billion in systematically invested fixed income assets.
For more about Parametric’s Custom Core Fixed Income:
Parametric uses investment science to build and manage systematic investment strategies and to implement custom portfolio solutions providing clients with targeted investment exposures with control of costs and taxes. Based on principles of intellectual rigor, ingenuity and transparency, Parametric seeks to deliver repeatable client outcomes with consistently high levels of service and maximum efficiency. As of June 30, 2020, Parametric managed $297.0 billion in assets on behalf of institutions, high-net-worth individuals and fund investors. Headquartered in Seattle, Parametric also has offices in Minneapolis, New York, Boston and Westport, Connecticut.
About Eaton Vance
Eaton Vance Corp. provides advanced investment strategies and wealth management solutions to forward-thinking investors around the world. Through principal investment affiliates Eaton Vance Management, Parametric, Atlanta Capital, Calvert and Hexavest, the company offers a diversity of investment approaches, encompassing bottom-up and top-down fundamental active management, responsible investing, systematic investing and customized implementation of client-specified portfolio exposures. As of June 30, 2020, Eaton Vance had consolidated assets under management of $486.4 billion. Exemplary service, timely innovation and attractive returns across market cycles have been hallmarks of Eaton Vance since 1924. For more information, visit eatonvance.com.