AUM Over 30 Years

Can portfolio exposures be more efficiently implemented?

 

Challenge

The late 1980s was a period where tactical asset allocation was quite popular. Many asset managers sought to trade their portfolios more often, while doing so quickly and efficiently. And many traditional asset managers may not have understood derivatives and/or they may not have been set up to trade these specialized instruments. In addition, the daily, weekly and monthly management of all these transactions could be time consuming.

Explore our Customized Exposure Management (CEM) solutions

Solution

Our first advisory exposure management relationship,* primarily listed futures, was working for a fund sponsor as their implementer of tactical calls provided by another registered investment advisor. Following that, several other clients came to us looking for assistance in expressing their investment views. During this period, we ran a number of implementation programs as others began to see the value in bringing in a derivatives professional (or specialist). We continue to evolve new programs based on our clients’ asks and needs.

 

Overlay

 

For illustrative purposes only

Get more information on CEM

Parametric’s comprehensive, custom overlay solutions are designed to achieve an investor’s policy objectives, including those related to exposure management and securitizations, while helping minimize transaction costs. Additionally, by selecting an exposure management specialist, investors can focus on broader priorities, save time and be confident that the day-to-day operations are being handled efficiently. As of June 30, 2017, we manage over $92B in customized exposure management strategies*.  


Justin Henne

Justin Henne, CFA - Managing Director - Customized Exposure Management

Mr. Henne leads the investment team responsible for the implementation and enhancement of Parametric’s Customized Exposure Management product. Justin has gained extensive experience trading a wide variety of derivative instruments in order to meet each client’s unique exposure and risk management objectives.

 

Explore other investor challenges

 


*Reflects investment advisory services provided by The Clifton Group, which was acquired by Parametric in 2012.

Derivatives such as futures, swaps, and other investment strategies have certain disadvantages and risks.  Futures require the posting of initial and variation margin. Therefore, a portion of risk capital must be preserved for this purpose rather than being allocated to a manager. Liquid futures may not exist for published benchmarks which may result in tracking error. Also, some intra-period mispricing may occur. Swaps require periodic payments, may be less liquid than futures, and may have counterparty/credit risk. Some investment strategies require a cash investment equal to the desired amount of exposure.

All investments are subject to risks. For additional information about Parametric, please visit Disclosures.

 

{F33BD959-1499-4857-91FB-3B0EF4ADCB43}

Loading...