Parametric
Market insights and commentary from Parametric.
United States6 articlesLast published 1 Jun 2025
Multi-AssetEquities
Research
ParametricFixed Income
Fixed Income Tax Loss Harvesting: Why Timing Matters | Parametric Portfolio Associates
Parametric's Nisha Patel reviews how 2025's volatile yield environment created time-sensitive tax loss harvesting opportunities in fixed income, arguing that calendar-driven reviews are insufficient. The piece highlights Parametric's systematic, technology-driven approach, which realized $362 million in net losses and an estimated $122 million in potential tax savings for Fixed Income SMA investors in 2025.
1 Jun 2025
ParametricEquities
Factor Investing Endures Despite Tough 2025 for Quality Stocks | Parametric Portfolio Associates
Parametric Portfolio Associates reviews the quality factor's underperformance in 2025 - where the MSCI World Quality Index trailed the MSCI World by approximately 5.67% on a sector-neutral basis - attributing the lag to a low-quality rally, firm macro growth, and rotation into momentum and high-beta names. The piece argues for a diversified multifactor approach combining quality, value, momentum, and low volatility, with dynamic factor timing and integrated optimization, as the more resilient long-term strategy.
1 Jun 2025
ParametricFixed Income
Fixed Income Midyear Outlook 2026: Higher-Yield Opportunities | Parametric Portfolio Associates
Parametric's midyear 2026 fixed income outlook argues that elevated yields - near decade highs across Treasuries, municipals, investment-grade corporates, and preferreds - create compelling income and return opportunities despite macro headwinds including above-target inflation (4.2% headline), geopolitical risk, and Fed policy uncertainty. The piece provides sector-specific views on municipals, investment-grade corporates, and preferred securities, advocating for active management to navigate duration, curve positioning, and credit exposure in a higher-for-longer rate environment.
ParametricEquities
What You Need to Know About Tracking Error | Parametric Portfolio Associates
Parametric's Jennifer Sireklove clarifies common misconceptions about tracking error, explaining that it measures the standard deviation of excess returns around a portfolio's own average - not versus a benchmark or as a signal of under/outperformance. The piece illustrates how tracking error must always be interpreted alongside average excess return to meaningfully assess portfolio behaviour relative to a benchmark.
ParametricEquities
How High-Profile IPOs Could Reshape Your Portfolio Exposures | Parametric Portfolio Associates
Parametric Portfolio Associates examines how 2026 rule changes by Nasdaq, FTSE Russell, S&P, and MSCI governing IPO inclusion in major indexes affect investor portfolio exposures, with particular attention to large AI-sector listings. The piece argues that direct indexing provides investors with greater control over if and when newly added IPO constituents enter their portfolios, versus pooled vehicles that must buy automatically upon index inclusion.
ParametricEquities
Tax-Aware Customization Beyond Direct Indexing: Cerulli Report | Parametric Portfolio Associates
Drawing on Cerulli Associates' "Customized at Scale" research, Parametric argues that effective tax management requires a coordinated suite of solutions - including direct indexing, custom bond SMAs, tax-managed long-short equity, options overlays, and special-purpose vehicles - rather than any single strategy. The piece highlights the value of integrated tools like Eaton Vance's TOPS platform for navigating complex portfolio lifecycle transitions from accumulation to distribution.