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Tax Management

Tax management is more than just harvesting losses, even though many firms stop there. Our continuous tax management process optimizes for tax-efficiency and risk-related improvements. Read more about Parametric’s tax management capabilities.

Strategy Goals

Tax management seems like it should be simple, but the reality is far more complex with risks to consider. Parametric’s tax-managed solutions strive to provide investors with “better beta”. Better beta for a tax-paying investor means delivering predictable pre-tax returns, superior after-tax returns and customization benefits of many types. Extensive research and over two decades of experience have led to Parametric to becoming a market leader in tax-management. 

Tax Loss Harvesting

One of the primary drivers of tax efficiency in a Tax-managed Custom CoreTM account comes from tax loss harvesting. The Parametric portfolio manager will sell a basket of securities the majority of which are at a loss, and simultaneously replace with a different basket of purchased securities. The trade results in net losses for the client, and helps to control risk.

Tax-Loss-Harvesting

*For illustration purposes only


Custom Core™ consists of Tax-Managed and Non Tax-Managed Strategies. Tax-Managed Custom Core™ and Centralized Portfolio Management strategies are offered by Parametric Custom Tax-Managed & Centralized Portfolio Management. Non-Tax Managed Custom Core™ are offered by Parametric Investment & Overlay Strategies. Parametric is divided into two segments: Parametric Investment & Overlay Strategies and Parametric Custom Tax-Managed & Centralized Portfolio Management. For compliance with Global Investment Performance Standards (GIPS®), the Firm is defined and held out to the public as Parametric Investment & Overlay Strategies. For additional information please visit the Disclosure Page.  For additional information please visit the Disclosure page.

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