Parametric Launches Custom Active to Bring a New Focus to Active Tax Management
19 Agosto 2024 - 7:30AM
Business Wire
New partnership with Capital Group offers
strategies optimized by the Custom Active solution
Parametric Portfolio Associates (Parametric), part of Morgan
Stanley Investment Management (MSIM), is pleased to announce the
launch of Custom Active, an innovative tax optimization capability
for asset managers. Investors can now access established equity
strategies customized for tax efficiency and other considerations
powered by the investment expertise of Parametric. In addition to
supporting MSIM’s Eaton Vance and International Equity teams,
Parametric is pleased to be partnering with Capital Group to offer
several strategies optimized by the Custom Active solution. These
strategies are available through Morgan Stanley Wealth Management
(MSWM) and registered investment advisers (RIAs).
“We developed the Custom Active offering to help asset managers
meet the demand from financial advisers and their clients for tax
management and customization,” said Ben Huneke, Co-Head of MSIM.
“Parametric’s three decades of experience solving client challenges
through innovative, systematic solutions backed by investment
science makes us uniquely positioned to offer a mechanism for
active equity managers to address the complex tax-management and
investment goals of their clients.”
Through Custom Active, asset managers partner with Parametric to
offer an existing equity strategy through an active separately
managed account (SMA) optimized for tax management. The SMAs also
offer additional customization opportunities including sector and
industry screens, and client-directed gain/risk budgets.
Jared Gray, Managing Director at Parametric, added: “Effective
tax management can add meaningful tax alpha annually to an
investor’s after-tax return, a benefit that individuals with
complex tax and investment needs may be missing out on today.
Custom Active is a solution that enables equity managers to greatly
enhance their well-established strategies with elevated tax
management and other customization tools. As investors experience
the advantages of active equity tax management, this will
increasingly become the standard.”
In partnership with active managers, Parametric determines
well-suited strategies and implements an actively managed model of
primary securities and a list of additional securities while
seeking to systematically offset any gains with losses through
year-round tax optimization review. Parametric’s approach to
systematic tax management is centered on transparent, rules-based
analysis and opportunistic tax-loss harvesting.
The announcement follows additional applications of Parametric
into MSWM, including most recently introducing patented fractional
share holding capabilities into the entire suite of Parametric’s
Custom Core equity indices in unified managed accounts. MSWM was
also an early adopter of the Custom Active solution across eight
portfolios driven by the tactical asset allocation advice of MSWM’s
Global Investment Committee, and more recently with other MSIM and
third-party strategies.
Jed Finn, Head of Morgan Stanley Wealth Management, added:
“Effective tax management is crucially important to the wealth
management clients we serve – particularly among the high net worth
segment. In welcoming Parametric into the MSWM franchise, we have
been able to deliver another seamless and differentiated solution
for clients and the Advisors who serve them. Parametric continues
to raise the bar for the industry and we are excited to further
unlock its unique power.”
While Parametric currently manages SMAs based on active
strategies from Capital Group and MSIM’s Eaton Vance and
International Equity teams, additional strategies from managers
across investment styles including domestic, international, large,
mid and small cap are expected to be added.
Parametric has a 30+ year history of partnering with advisors,
institutions and consultants to build customized portfolio based on
what is most important to them and their clients. The Custom Active
capability allows Parametric to work more closely with asset
managers to better deliver solutions to advisors and clients.
Parametric is dedicated to understanding inefficient markets and
focused on innovative ways to build portfolios, reduce
inefficiencies and capitalize on market opportunities.
About Parametric
Parametric partners with advisors, institutions, and consultants
to build innovative portfolio solutions focused on achieving their
long-term financial objectives. A leader in custom solutions for
more than 30 years, Parametric helps investors efficiently access
market exposure, solve implementation challenges, and design
multi-asset portfolios that respond to evolving needs. Parametric
also offers systematic alpha strategies to complement clients’ core
holdings. Parametric is part of Morgan Stanley Investment
Management, the asset management division of Morgan Stanley. Learn
more at parametricportfolio.com.
About Morgan Stanley Investment Management
Morgan Stanley Investment Management, together with its
investment advisory affiliates, has more than 1,400 investment
professionals around the world and $1.5 trillion in assets under
management or supervision as of June 30, 2024. Morgan Stanley
Investment Management strives to provide outstanding long-term
investment performance, service, and a comprehensive suite of
investment management solutions to a diverse client base, which
includes governments, institutions, corporations and individuals
worldwide. For further information about Morgan Stanley Investment
Management, please visit www.morganstanley.com/im.
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Media Morgan Stanley: Lauren Bellmare,
lauren.bellmare@morganstanley.com