Morgan Stanley Investment Management (MSIM) subsidiary Parametric Portfolio Associates (Parametric) introduced Lazard Asset Management as a new partner for the Custom Active solution, an inventive tax optimisation tool for asset managers.
Parametric is launching a number of new strategies that leverage the Custom Active solution for tax efficiency and other customisation considerations, following its popularity with its previous partner Capital Group.
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The platform has expanded to include a variety of well-known active equity techniques from MSIM investment teams, including as Eaton Vance, Calvert, and International Equity, as well as Lazard Asset Management and Capital Group.
Parametric’s tax management strategies consist of:
- Calvert International ADR
- Capital Group Global Equity ADR
- Capital Group International Equity SMA
- Capital Group U.S. Income and Growth SMA
- Eaton Vance Large-Cap Value
- Eaton Vance Small-Cap
- Lazard Asset Management Emerging Markets Equity Select ADR
- Lazard Asset Management International Equity Select w/ Emerging Markets ADR
- Morgan Stanley Global Franchise ADR
- Morgan Stanley International Resilience ADR
All active equity strategies employ Parametric’s Custom Active solution to meet complicated investing requirements via an active separately managed account (SMA) optimised for tax management. The SMAs also include additional customisation options, such as sector and industry screens and client-directed gain/risk budgets.
Moreover, Parametric uses an actively maintained model offered by its asset management partners and aims to regularly offset profits and losses through year-round tax optimisation reviews.
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By GlobalDataThe Custom Active solution is available through Parametric’s $42bn Centralised Portfolio Management service, which includes $4bn in tax-managed model strategies. Retail investors can access the strategies through a small group of intermediaries and registered investment advisers (RIAs).
Thomas Lee, co-president, and chief investment officer at Parametric stated: “The Custom Active solution enables asset managers to greatly enhance their well-established strategies by providing tax efficiency, personalisation, and flexibility not available in other vehicle structures. We are pleased to expand our product set with these latest strategies and help our partners meet the strong investor demand for investment strategies with active tax management and other customisation features.”
Matt Witkos, head of North America Intermediary Sales, MSIM added: “As a pioneer in tax-managed overlays and customisation with over three decades of experience, Parametric is well-equipped to provide products that help financial advisers meet their clients’ demand for tax efficiency and other investment considerations. Through Custom Active, we are able to elevate strategies from industry leaders and build a portfolio that meets an individual’s investment goals.”
