Franklin Templeton Expands Canvas Platform By Offering Tax Overlay Capability to Several Asset Manager Strategic Partners

Key Terms

tax overlay financial

A tax overlay is an extra layer of rules and trades applied to an investment portfolio to reduce or delay the taxes owed when buying, selling or rebalancing holdings. Think of it as a route planner that steers trades around costly “tax tolls” — it helps preserve more of returns for investors by harvesting losses, timing gains and choosing which shares to sell without changing the portfolio’s overall investment strategy.

separately managed accounts financial

A separately managed account is an investment portfolio owned by a single investor but professionally managed to that investor’s specific goals and preferences, rather than pooled with other clients’ money. It matters to investors because it offers greater customization, tax control and transparency—like hiring a personal chef instead of eating from a shared buffet—though it often requires higher minimums and can have different fee and liquidity implications.

tax-loss harvesting financial

Selling investments that have fallen in value to realize a loss and use that loss to reduce the taxes owed on gains or other income, then optionally replacing the position with a similar holding to keep the portfolio’s strategy intact. Think of it like trimming a wilted branch from a plant to keep the plant healthy while using the trimmed weight to balance out heavier growth elsewhere; it can lower your current tax bill and improve after‑tax returns, though rules can limit immediate repurchases.

concentrated stock diversification financial

A portfolio approach where an investor keeps a large, concentrated holding in one or a few stocks while spreading the rest of their assets across many other securities or risk-reducing tools. It matters because the concentrated holding can drive outsized gains or losses, so investors use diversification around it to limit the chance that one company’s setback wipes out most of their returns—like protecting a prized tree by planting a variety of other trees around it.

after-tax reporting financial

After-tax reporting shows a company’s financial results after income taxes have been subtracted, similar to comparing take-home pay to gross pay. It gives investors a clearer view of the money that actually remains for owners, dividends, debt repayment or reinvestment, and helps compare profitability across companies or periods when tax expenses differ. Because taxes can change reported earnings substantially, after-tax figures are key to assessing true cash available to shareholders.

tax-aware transitions financial

Tax-aware transitions are portfolio changes made with an eye on the tax bill they will create, such as selling holdings, moving into new funds, or rebalancing investments. Like packing up a home move to avoid unnecessary costs, these moves aim to preserve more of an investor’s money by timing trades, using tax-loss harvesting, or choosing tax-efficient vehicles so the same strategy yields a bigger after-tax return. Investors care because taxes can meaningfully reduce realized gains and long-term performance.

tax-aware customization financial

Tax-aware customization is the process of tailoring an investment strategy, portfolio or financial action to account for the taxes that will be owed, so the after-tax return is maximized rather than just the pre-tax return. Think of it like planning a road trip that avoids tolls and traffic: small route changes can save money and time over the journey. For investors, it matters because two portfolios with the same gross performance can leave very different amounts of money in your pocket once taxes are paid.

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Canvas Preferred Partner Program (P3) Allows Select Active Managers to Offer Tax-Managed Versions of Strategies to the Market

SAN MATEO, Calif.--(BUSINESS WIRE)-- Franklin Templeton, a global investment leader, today announced the launch of its Preferred Partner Program (P3), an expansion of its Canvas platform that enables third-party asset managers to offer tax-managed versions of their proprietary investment strategies through Canvas.

The program extends Canvas’s personalization and tax management capabilities beyond Franklin Templeton product, allowing selected managers to deliver their investment philosophy with a systematic tax overlay that combines traditional alpha and tax alpha within a single portfolio experience.

Through Canvas P3, MFS Investment Management, Federated Hermes and T. Rowe Price will now offer select systematically tax managed strategies in partnership with Franklin Templeton. These strategies, starting with separately managed accounts, will pair each manager’s investment expertise with Canvas’s tax overlay capabilities, which are designed to target after-tax outcomes while maintaining alignment with the manager’s investment approach.

“We built Canvas to help advisors deliver more personalized and tax-efficient portfolios at scale,” said Roger Paradiso, Head of Franklin Templeton Custom Client Portfolios “Canvas P3 further expands our strategy suite and gives advisors a way to access strategies from other select asset managers they also want work with while adding tax-aware implementation at the individual account level. Advisors should have choices when selecting a manager that they believe in while getting the best tax-aware outcome their clients deserve."

The Canvas platform supports tax-loss harvesting, tax-aware transitions, annual tax budgets, concentrated stock diversification, client-specific restrictions and after-tax reporting. These capabilities are applied at the account level, allowing advisors to tailor implementation to each client’s circumstances while preserving the investment intent of the underlying strategies and account.

“The value of Canvas is in its scalable implementation," said Mark Lavan, Head of Wealth Management at Franklin Templeton “By bringing other managers’ strategies onto the platform, Canvas can help transform a manager’s conversations historically anchored in performance, into a more personalized and integrated portfolio experience for advisors and their clients. This is an important step in making tax-aware customization more accessible across a broader range of investment strategies.”

Canvas is core to Franklin Templeton’s broader effort to deliver technology-enabled, personalized investment solutions to advisors and their clients. The platform is designed to help advisors create, transition and manage customized portfolios with account-level tax management and implementation support.

About Franklin Templeton

Franklin Templeton is a trusted investment partner, delivering tailored solutions that align with clients’ strategic goals. With deep portfolio management expertise across public and private markets, we combine investment excellence with cutting-edge technology. Since our founding in 1947, we have empowered clients through strategic partnership, forward-looking insights, and continuous innovation – providing the tools and resources to navigate change and capture opportunity.

With more than $1.78 trillion in assets under management as of May 31, 2026, Franklin Templeton operates globally in more than 35 countries.

To learn more, visit franklintempleton.com and follow us on LinkedIn.

Franklin Resources, Inc. [NYSE: BEN]

All investments involve risks, including possible loss of principal. Franklin Templeton, its affiliates, and its employees are not in the business of providing tax or legal advice to taxpayers. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties or complying with any applicable tax laws or regulations. Tax related statements, if any, may have been written in connection with the “promotion or marketing” of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.

Copyright © 2026. Franklin Templeton. All rights reserved.

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Franklin Templeton
Public Relations:
Eloise Cappelletti (212) 632-3207
eloise.cappelletti@franklintempleton.com

Source: Franklin Templeton