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Tax Management

For institutional investors

Active tax management seeks to manage tax impact and maintain portfolio alignment.

As the tax landscape evolves, taxable institutions need portfolio solutions designed to help manage realized gains and maintain strategic flexibility. Parametric combines decades of tax-management experience with customized implementation solutions that seek to help institutional investors navigate changing tax realities.

How it works

Through customized portfolios, tax-aware rebalancing, derivative overlays and continuous tax-loss harvesting, we seek to help institutions pursue more efficient after-tax outcomes across equity and multi-asset portfolios. Our approach can be tailored to coordinate tax decisions across portfolios, manage gain realization and align implementation with each institution’s broader tax position.

Step 1
We work with your team to understand your portfolio, liquidity needs, tax status and investment-policy constraints.

Step 2
We design tax-aware implementations tailored to each institution’s objectives, spanning liquidity sourcing, derivative overlays and continuous loss harvesting.

Step 3
We manage marketable exposures throughout the year, seeking to defer gains and capture losses while tracking your chosen benchmark.

Flexible framework for institutional tax management

Our approach combines customized portfolio construction, active implementation and systematic tax management techniques to help institutions seek efficient after-tax outcomes while remaining aligned with investment policy objectives.

Customized implementation

From benchmark customization to factor tilts and custom values preferences, portfolios can be tailored to reflect an institution’s investment philosophy, constraints and tax considerations.

Liquidity and transition management

Institutions often face liquidity needs that are independent of market conditions. Parametric can help clients evaluate tax-aware approaches to sourcing liquidity, rebalancing portfolios and transitioning exposures.

Overlay implementation

Derivative overlays may help institutions maintain target exposures while reducing the need to sell appreciated physical securities. Overlay strategies may provide additional flexibility for rebalancing and risk management.

Tax-aware portfolio management

Parametric can continuously monitor portfolios for opportunities to harvest losses, manage gains and seek after-tax efficiency throughout the year—not just during year-end rebalancing.

Intended benefits of tax management