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Custom Core® Fixed Income


Parametric has been a pioneer in customized core equity solutions for more
than 30 years—now we’ve brought that expertise to fixed income.

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Parametric’s Custom Core Fixed Income strategy is a professionally managed separately managed account (SMA) that seeks to deliver market and risk-factor exposure similar to a benchmark. We add value through customization and active tax management while reducing downside risk with fundamental research and rules-based portfolio construction.

Custom Core Fixed Income is a powerful way to scale your practice, with access to low account minimums, seamless transitions, and extensive customization options.

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Why choose Parametric?

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$376B+

Total firm AUM



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$46.5B+

Customized fixed income AUM



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30+

Years of tax management experience



As of 6/30/2022

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A new approach to customized fixed income

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Hybrid approach

We combine fundamental, bottom-up credit analysis with rules-based investing to avoid behavioral biases and market timing.
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Liquidity

Direct bond holdings within an SMA create high portfolio liquidity. Unlike an exchange-traded fund (ETF), portfolios will never trade at discounts to net asset value in times of market stress.
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Broad range of exposures

Choose from a number of licensed benchmarks to create a custom portfolio of fixed income holdings. Our experienced traders have access to a national network of more than 100 broker-dealers to buy and sell a wide range of bonds at attractive prices.
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Customization

Customize your clients' fixed income exposure with their choice of maturity, credit quality, sector, or industry exposure. You can also choose from more than 100 responsible investing screens to apply to your clients’ fixed income holdings.
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Low tracking error

Our strategies exhibit a 50% lower tracking error than ETFs on a long-term basis.

Intended benefits of Custom Core Fixed Income

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Credit oversight

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Our experienced team of credit analysts and strategists selects and monitors investments, helping to reduce credit risk.

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Transparency

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We provide full daily reports of all holdings and trades.

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Tax management

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Our tax-management strategies can add 0.2% to 0.3% in tax alpha.

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Hassle-free transitions

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We minimize taxes and tracking error when transitioning an existing bond portfolio by retaining holdings that fit the characteristics of your client’s selected benchmark.

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