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Centralized Portfolio Management (CPM)

Our Centralized Portfolio Management (CPM) process seeks to simplify and enhance investment implementation. In addition to implementation efficiency, the CPM process allows for truly customized tax management, restrictions management, and asset class rebalancing.

Strategy Goals

Parametric’s Centralized Portfolio Management (CPM) strategy strives to provide the pre-tax return of multiple asset managers or styles combined within a single coordinated portfolio. By combining the inputs from various strategies into a centralized single account, CPM allows for individual tax, risk, and customization decisions for each client account.

Features of CPM accounts include:

  • Fully customizable through account-level restrictions, and tax considerations
  • Disciplined rebalancing
  • Ongoing tax-loss harvesting
  • Deferral of short-term gains
  • Wash sale avoidance
  • Tax-efficient withdrawals, security deposits, manager, and allocation changes


Investment Philosophy

  • Preferred managers will provide their investment research directly to the centralized portfolio manager (Parametric).

  • Parametric will combine the investment decisions of each investment manager at their respective weights and create a customized CPM target with security bounds.

  • Parametric will optimize the portfolio specifically for each account and create customized trades.

How CPM works

The above example is for illustrative purposes only and is not representative of any client portfolio. It should not be considered investment advice or a recommendation to adopt any investment strategy.

The Parametric Central Portfolio Management strategy is offered by Parametric Tax-Managed & Centralized Portfolio Management.  For additional information please visit the Disclosure page.

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