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Centralized Portfolio Management

For wealth managers

For institutional investors »

Parametric’s Centralized Portfolio Management (CPM) solutions are designed for advisors and their clients who use multiple managers to eliminate implementation inefficiencies and minimize tax costs by using a single centralized account.

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Leveraging proprietary technology and more than 25 years of experience managing tax-efficient, risk-controlled, customized portfolios, Parametric provides advisors with a simple yet enhanced way to offer holistic portfolio solutions to their clients. 

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CPM offers a customizable and scalable platform for advisors to manage investment portfolios in a way that minimizes trading and tax costs. Combining the inputs from various third-party management strategies into a single account, the platform allows for unique tax, risk, and customization decisions for each client.

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Why choose Parametric?

$35.9B+

Total CPM AUM

49

Dedicated CPM investment professionals

36

Directed brokerage relationships

As of 9/30/2024

How it works

Advisors design multimanager portfolios and apply unique client customizations. Parametric aggregates all portfolios and implements a single centralized portfolio to minimize trading costs and taxes. Parametric manages ongoing portfolio activities, streamlining operational efficiency. CPM centralizes tax issues and the operational activities of opening, closing, trading, and maintaining accounts between Parametric and the advisor—where maximum coordination and customization can occur.

  • Design
  • Implement
  • Base portfolio
  • An advisor selects equity or fixed income managers for inclusion in their asset allocation portfolios.
  • Desired customization options—such as in-kind funding, exclusions, tax management, and responsible investment strategies—are incorporated into allocations.
  • Parametric establishes a direct feed with the advisor’s selected managers and receives model portfolio updates.
  • Client accounts are invested according to investment guidelines.
  • We coordinate all administration, rebalancing, cash-flow management, and customization features.
  • Daily reconciliation is made to the custodian and compliance before and after trading.
  • Clients are provided with consolidated reports.
Design
  • An advisor selects equity or fixed income managers for inclusion in their asset allocation portfolios.
  • Desired customization options—such as in-kind funding, exclusions, tax management, and responsible investment strategies—are incorporated into allocations.
Implement
  • Parametric establishes a direct feed with the advisor’s selected managers and receives model portfolio updates.
  • Client accounts are invested according to investment guidelines.
Base portfolio
  • We coordinate all administration, rebalancing, cash-flow management, and customization features.
  • Daily reconciliation is made to the custodian and compliance before and after trading.
  • Clients are provided with consolidated reports.

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This represents a new relationship between advisors, active managers, and the centralized portfolio manager—a relationship with benefits for all parties.

Intended benefits of CPM

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Operational scale

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We implement a platform that provides scalable and unified access to active managers, mutual funds, ETFs, and market exposures across public equities and fixed income.



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Demonstrated value

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We outsource implementation of public assets to a central manager, allowing advisors to focus on client goals and value-added services.





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Customization

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We deliver the flexibility to customize portfolios across strategies to include restricted or concentrated stock, different investment structures, and active tax management.


Simplicity

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We combine multiple asset classes and investments in a single account with a set of new-account paperwork, a statement, and a report.




Get in touch

Want to know more about our Centralized Portfolio Management solutions? Complete our contact form, and a representative will respond shortly.