Parametric Launches Tax Harvest Core Separately Managed Accounts – Expansion of Tax Management Expertise to Advisors and Investors
SEATTLE, July 20, 2021 – Parametric Portfolio Associates LLC (Parametric), the leading separately managed account (SMA) manager , today announced the launch of a new tax-advantaged SMA solution – Parametric’s Tax Harvest Core – to expand its value proposition to more advisors and investors. Parametric’s Tax Harvest Core is designed for the needs of U.S. taxable investors with portfolios of $100,000 or above, a lower minimum investment than most customizable SMAs available today.
“Parametric pioneered tax-managed investing in 1992 with Parametric’s Custom Core Equity SMAs. Since then—and in all market environments—we’ve partnered with advisors to help their clients to maximize after tax return in portfolios” said Rob Ciro, Managing Director, Product Management. As we look to build on our market-leading position in the direct indexing industry, we are introducing Tax Harvest Core to help advisors deliver our tax management expertise to more of their clients. Active tax management can deliver meaningful after-tax returns when conducted in a customized, systematic manner.”
Parametric’s Tax Harvest Core delivers daily tax management, customization at the sector level, transition analysis and management to two types of portfolios. One is benchmarked to the S&P 500 and the second one is benchmarked to the Russell 3000. Holding 11 sector ETFs, the portfolio’s seek to minimize tracking error against the respective index while focusing on an after tax performance outcome. ETFs are selected based on tracking error, expense ratios and liquidity, and are systematically rebalanced and replaced with additional sector ETFs once certain loss thresholds are met.
Advisors and their clients have the ability to customize each portfolio by restricting sectors, funding portfolios with cash or in-kind, and accessing tax-efficient, charitable gifting options. On-demand reporting on pre- and post-tax performance, portfolio gains and losses, and tracking error is also available.
“Parametric’s Tax Harvest Core provides investors the opportunity to get more from their portfolios in a risk- and cost-controlled way,” said Rob Ciro. “We believe it can be in the core of investors’ portfolios. It’s tax efficient and realizes losses that help offset the tax-inefficient satellites that are realizing gains. The end result is better overall after-tax returns.”
For more about Parametric’s Tax Harvest Core Solutions, click here:
Parametric, part of Morgan Stanley Investment Management, the asset management division of Morgan Stanley (NYSE: MS), uses investment science to build and manage systematic investment strategies and to implement custom portfolio solutions providing clients with targeted investment exposures with control of costs and taxes. Based on principles of intellectual rigor, ingenuity and transparency, Parametric seeks to deliver repeatable client outcomes with consistently high levels of service and maximum efficiency. As of March 31, 2021, Parametric managed $381 billion in assets on behalf of institutions, high-net-worth individuals and fund investors. Headquartered in Seattle, Parametric also has offices in Minneapolis, New York, Boston and Westport, Connecticut. For more information, visit parametricportfolio.com.