Parametric Portfolio Associates

CRD#114310
Investment Advisor Firm

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Learn more about Parametric Portfolio Associates

  • Overview
  • By the Numbers
  • Fee Structure
  • Types of Clients
  • Disclosures
  • State Registrations
  • Office Locations

    • Overview

    Parametric Portfolio Associates operates as an advisory firm based in Seattle, Washington. It oversees $386.3 billion in total assets across 132,036 customer accounts, placing it among the largest financial advisory firms in the nation by assets under management (AUM). Parametric Portfolio Associates has a large group, including 192 financial advisors. Parametric Portfolio Associates is not a registered broker-dealer, meaning the company is not able to buy and sell securities for its accounts and those of its customers and instead is required to go through a broker-dealer company to do so. Securities are defined as exchangable financial investments like stocks, options and bonds.

    Parametric Portfolio Associates administers 128,973 of its client assets on a discretionary basis. Discretionary management means that an investment advisor makes buy and sell choices without requiring client authorization. It also has 3,063 non-discretionary accounts with a total of $32.2 billion in assets. Parametric Portfolio Associates supervises about $2.9 million in assets for each customer account. The average financial advisor at Parametric Portfolio Associates manages about 688 client accounts.

    The company's central office is at 800 Fifth Avenue, Seattle, Washington 98104. The company is legally allowed to provide services to clients throughout 51 U.S. states and territories.

    Assets Under Management

    $386.3 billion

    Number of Advisors

    192

    Disclosures

    No

    Office Location

    800 Fifth Avenue
    Seattle, WA 98104

    Parametric Portfolio Associates by the Numbers

    Total Assets Under Management

    $386.3 billion

    National Average: $8.6 billion
    Total Number of Employees

    836

    National Average: 64
    Total Number of Accounts

    132,036

    National Average: 375,227
    Average Account Size

    $2.9 million

    National Average: $23.0 thousand
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    Fee Structure

    A financial advisor's fees largely depend on which services the firm provides the client. Fees charged by Parametric Portfolio Associates most likely include the following fee structures: asset-based, fixed or performance-based. The firm participates in a wrap fee program, in which the company offers a service bundle for a single fee.

    Available

    • Offered by 69% of firms

      Percentage of Assets

      Show Explanation

      This fee, which is the most common fee type charged by advisors for portfolio management, is based on the amount of assets you have under management. Also referred to as an asset-based fee, this fee typically ranges from 0.50%-2.00% of AUM annually. You'll typically pay a lower rate the more assets you have under management.

    • Offered by 26% of firms

      Performance-based

      Show Explanation

      Advisors only earn performance-based fees if a portfolio outperforms a defined benchmark. This fee may be calculated in a number of ways but most commonly is charged as a percentage of investment profits. Performance-based fees may incentivize advisors to make riskier decisions in order to generate higher returns.

    • Offered by 32% of firms

      Fixed

      Show Explanation

      Fixed fees are a one-time, lump sum charged for a specific service, like the creation of a financial plan without subsequent implementation. This can be useful if you only need advice for one specific purpose, rather than a long-term advisor. Fixed fees usually range from $1,000 to $3,000.

    Unavailable

    • Find one of the 21% of firms that offer this fee type

      Hourly

      Show Explanation

      Like a lawyer, a financial advisor may charge you by the hour. This can be helpful if you are only looking for short-term or one-time advice. Rates typically range from $100-$300 per hour, depending on the complexity and level of services needed.

    • Find one of the 1% of firms that offer this fee type

      Commissions

      Show Explanation

      Occasionally, advisors earn commissions from selling financial products, such as securities or insurance policies, or making certain referrals or transactions. Advisors who earn commissions may be incentivized to make certain recommendations to clients in order to make a commission. Fee-only advisors do not earn commissions, while fee-based advisors may.

    • Find one of the 0% of firms that offer this fee type

      Subscription

      Show Explanation

      Firms generally charge this fee for educational materials provided, such as a monthly magazine. This can be useful if you want to learn about investing or financial management on your own.

    • Find one of the 10% of firms that offer this fee type

      Other

      Show Explanation

      Firms can sometimes charge customers using non-traditional fee structures. See this firm's Form ADV for more details.

    Back to Overview

    Types of Clients

    Parametric Portfolio Associates works with a broad range of customers. The firm works with retail investors, high net worth investors, investment companies, pooled investment vehicles, pension plans, charitable organizations, state or municipal government entities, insurance companies and corporations. Out of its 132,036 customers, Parametric Portfolio Associates's biggest client by number of accounts is retail investors, although it also serves 38,867 high-net-worth individuals. The SEC defines a high-net-worth individual as an investor who has at least $750,000 in AUM or a net worth of more than $1.50 million or who counts as a "qualified purchaser" (a standard met by having at least $5 million in investments). Just 1% of the company's accounts reside abroad.

    • High-Net-Worth Individuals* - 29.44%
    • Other Individuals - 65.72%
    • Corporations - 3.83%
    • Charitable Organizations - 1.01%

    * The U.S. Securities and Exchange Commission (SEC) defines a high-net-worth individual as someone who has at least $750,000 under management.

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    Disclosures

    Parametric Portfolio Associates does not have any disclosures.

    Please visit its Form ADV for more details.

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