HOW OFTEN DOES BORING EQUAL BRILLIANT?
CAN SIMPLE AND STRAIGHTFORWARD EQUAL SUCCESS?

Consider the following claims:

  • Equity markets are reasonably efficient—out-performance is difficult and hard-won.
  • Taxes matter—they can be the biggest cost a private investor faces.
  • Private clients have unique needs—and may benefit from a customized portfolio.

Do you agree? Most would acknowledge these observations are correct, possibly conventional—but the fact remains - they are powerful truths. When leveraged intelligently, they open the door to an investment strategy that seeks consistent performance and tax-efficiency in a customized account - a powerful investment benefit that is far from boring.

PARAMETRIC TAX-MANAGED CORE: THE BEST OF BOTH WORLDS TMC seeks the consistent performance and diversification of index-based investing with active tax management and customization. TMC portfolios are separate accounts of equities that target a client-designated index. They provide the consistent performance and diversification of index-based investing with active tax management and per-client customization. See how it works.

Delivering better beta
Investors and their advisors increasingly seek core-market exposure as they structure portfolios. Consistently capturing the performance and risk attributes of a given market or market segment (or "beta") is important in delivering the benefits of asset allocation.

Index mutual funds and ETFs deliver index-tracking returns with low turnover; but as commingled investment vehicles, they generally cannot provide customization or be designed to accommodate an investor's taxes. Parametric's Tax-Managed Core (TMC) portfolios represent a significant improvement: customized core exposure and a potentially lower tax bill.

  TMC vs. ETFs and Mutual Funds

 

Measuring what matters
Costs and taxes can change everything—particularly for the high-net-worth investor. And what many advisors and their clients have come to realize is that simply measuring pre-tax performance is not good enough, not when fees, taxes, transaction costs, and inflation can erode much, if not most, of your gains.

In the area of mutual funds (where public data is available) a recent Lipper research study showed that investors gave up-on average over the last 10 years-1.8 to 2.5 percentage points of return per year due to taxes alone.*

  TMC Brochure

* Source: Lipper, Inc. Taxes in the Mutual Fund Industry-2005