Is Parametric a broker-dealer?

Is Parametric a broker-dealer?

Yes, Parametric is not a broker-dealer. Instead, it is an investment management firm that specializes in systematic, rules-based investing strategies.

1. What services does Parametric offer?

Parametric offers a range of investment solutions, including separate account portfolios, mutual funds, and customized investment strategies.

2. How does Parametric differ from traditional broker-dealers?

Broker-dealers typically execute trades on behalf of clients and may provide investment advice. In contrast, Parametric focuses on creating customized investment solutions based on clients’ specific needs.

3. Is Parametric regulated by the SEC?

Yes, Parametric is regulated by the Securities and Exchange Commission (SEC) as an investment advisory firm.

4. Can Parametric execute trades on behalf of clients?

Parametric does not execute trades directly. Instead, the firm works with brokerage firms and custodians to implement its investment strategies on behalf of clients.

5. Does Parametric charge commissions on trades?

Parametric typically does not charge commissions on trades. Instead, the firm may charge a fee based on assets under management or performance.

6. How does Parametric select investments for clients?

Parametric uses a systematic, rules-based approach to construct portfolios that seek to optimize specific investment objectives, such as tax efficiency or risk control.

7. Can clients of Parametric access their accounts online?

Yes, clients of Parametric can access their accounts online through the firm’s secure client portal, which provides real-time account information and performance reporting.

8. Does Parametric provide financial planning services?

While Parametric does not offer traditional financial planning services, the firm works closely with clients and their financial advisors to tailor investment solutions to meet their specific goals and objectives.

9. How does Parametric address risk management in its investment strategies?

Parametric incorporates risk management techniques, such as diversification and downside protection, into its investment strategies to help minimize potential losses during market downturns.

10. Can clients of Parametric speak directly with an investment professional?

Yes, clients of Parametric have access to a team of experienced investment professionals who can provide personalized advice and guidance on their investment portfolios.

11. What types of clients does Parametric serve?

Parametric serves a diverse range of clients, including high-net-worth individuals, financial institutions, pension funds, and endowments.

12. Does Parametric offer socially responsible investment options?

Yes, Parametric offers socially responsible investment (SRI) options for clients who wish to align their investment portfolios with their values and ethical beliefs.

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