Parametric’s Custom Active Solution Expands Significantly
In a significant enhancement to its offerings, Parametric Portfolio Associates LLC, a part of Morgan Stanley Investment Management, recently revealed exciting growth within its Custom Active platform. This innovative platform specializes in tax optimization solutions tailored for asset managers, and now incorporates more than 35 new strategies. Collaborations with high-profile partners such as Columbia Threadneedle Investments, Lord Abbett & Co. LLC, PGIM, Polen Capital, and Voya Investment Management have played a crucial role in this expansion.
New Partnerships Strengthening the Offering
The integration of these partnerships enhances the Custom Active solution, which allows asset managers to fine-tune their strategies while maintaining tax efficiency. Thomas Lee, Co-President and Chief Investment Officer at Parametric, noted the excitement surrounding this growth as it reflects the increasing demand for customization in investment strategies aimed at meeting complex investor needs. Parametric’s vast experience in providing long-lasting solutions enabled this growth to cater to investors requiring tailored approaches.
Strategies from Both New and Existing Partners
Within the newly revamped platform, Parametric now showcases over 45 active equity strategies. Among these, 11 strategies come from the latest partners, while existing collaborations with Capital Group and Lazard Asset Management contribute an additional 10 strategies. Furthermore, MSIM's investment teams have developed 13 innovative strategies, including those from Atlanta Capital and Calvert.
Unique Features of Custom Active Solution
All strategies in the Custom Active solution are expertly managed by Parametric itself, ensuring a high level of oversight and tax management. This platform resonates well with a diverse range of individual investors and financial advisors, as expressed by Matt Witkos, Head of North America Intermediary Sales at MSIM. The demand for tax efficiency has driven asset managers to enhance their offerings beyond traditional structures, demonstrating a marked shift in the investment landscape.
Customization Capabilities for Investors
Parametric’s Custom Active solution is designed to address complex investment needs through a separately managed account (SMA) framework, optimized for tax management. Investors benefit from further customization opportunities, such as sector and industry screens, along with client-directed gain and risk budgets. These options empower asset managers to craft strategies that align closely with their clients' specific investment goals.
Overview of Parametric
For over three decades, Parametric has been a trailblazer in delivering custom investment solutions geared towards helping advisors, institutions, and consultants achieve their long-term financial aspirations. The firm enables investors to gain efficient market exposure while tackling implementation challenges. In addition to its extensive range of tax-managed model strategies, Parametric also provides systematic alpha strategies to complement core holdings.
About Morgan Stanley Investment Management
Morgan Stanley Investment Management boasts over 1,400 investment professionals globally and has a staggering $1.7 trillion in assets under management. The firm remains committed to delivering exceptional, long-term investment performance and estate management solutions for a diverse clientele, including institutions, governments, and individual investors. For those seeking more information about the comprehensive suite of investment management solutions, Morgan Stanley Investment Management offers an extensive overview on its platform.
Frequently Asked Questions
What is Parametric’s Custom Active solution?
Parametric’s Custom Active solution is a platform designed for tax-optimized asset management, allowing customization of investment strategies.
Who are the main partners involved in the expansion?
The expansion involves partnerships with Columbia Threadneedle, Lord Abbett, PGIM, Polen Capital, and Voya Investment Management.
How many strategies does the platform now offer?
The Custom Active platform now offers more than 45 active equity strategies from various investment teams.
What are the benefits of the Custom Active solution?
Benefits include tax efficiency, customization options, and access to expertly managed strategies adapted to investor needs.
How can investors access these strategies?
These strategies are made available to retail investors via select intermediaries and registered investment advisers.
