Parametric Launches Tax Harvest Core Separately Managed Accounts

Rhea-AI Summary

Parametric Portfolio Associates has launched Parametric Tax Harvest Core, a new tax-managed separately managed account (SMA) solution aimed at U.S. taxable investors with portfolios of $100,000 or more. This offering seeks to expand access to tax-managed investments, providing ongoing tax management and sector-level customization across two strategies benchmarked to S&P 500 and Russell 3000. The initiative is designed to enhance after-tax returns through systematic tax-loss harvesting, catering to financial advisors and their clients.

Positive

• Launch of Parametric Tax Harvest Core targets U.S. taxable investors with a minimum investment of $100,000, broadening access to tax-managed SMAs.
• Ongoing tax management and customization options enhance after-tax performance potential.
• Part of a strategy to strengthen market position in the direct indexing industry.

Negative

• None.

SEATTLE, July 20, 2021 /PRNewswire/ -- Parametric Portfolio Associates LLC (Parametric), the leading separately managed account (SMA) manager,¹ today announced the launch of Parametric Tax Harvest Core, extending the range of tax-managed SMA solutions offered by Parametric to financial advisors and investors. Parametric Tax Harvest Core is designed to meet the needs of U.S. taxable investors with portfolios of $100,000 or above, a lower minimum than most tax-managed custom SMAs available today.

"Parametric pioneered tax-managed equity SMA investing in 1992 with the introduction of Parametric Custom Core® individual separate accounts. Since then – in all market environments – we've partnered with advisors to help their clients maximize after-tax returns," said Rob Ciro, Managing Director, Product Management, at Parametric. "As we look to expand upon our market leading position in the direct indexing industry, we are introducing Tax Harvest Core to bring the benefits of tax-managed custom SMAs to more advisors and a greater number of their clients."

Parametric Tax Harvest Core delivers ongoing tax management and sector-level customization to two portfolio strategies: one benchmarked to the S&P 500 and the other benchmarked to the Russell 3000. By investing in sector ETFs, Parametric Tax Harvest Core portfolios seek to minimize tracking error versus the applicable benchmark and to enhance after-tax performance through systematic tax-loss harvesting and other tax management. ETFs are selected for inclusion based on tracking error, expense and liquidity considerations.

With Parametric Tax Harvest Core, advisors and their clients have the ability to customize each portfolio by restricting sectors, funding positions with cash or in-kind, and accessing tax-efficient, charitable giving options. On-demand reporting of pre-tax and after-tax performance, portfolio gains and losses, and tracking error versus benchmark is also available.

"Parametric Tax Harvest Core provides investors the opportunity to get more from their investments in a risk-controlled and cost-controlled manner," said Mr. Ciro. "The end result we seek is better after-tax returns for clients."

For more about Parametric Tax Harvest Core SMAs, click here:

About Parametric

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.

¹ Source: Cerulli Associates and Money Management Institute's Advisory Solutions Quarterly, December 2020. Page 10.

 

View original content:https://www.prnewswire.com/news-releases/parametric-launches-tax-harvest-core-separately-managed-accounts-301337273.html

SOURCE Parametric

FAQ

What is Parametric Tax Harvest Core?

Parametric Tax Harvest Core is a tax-managed separately managed account (SMA) launched by Parametric Portfolio Associates for U.S. taxable investors with portfolios of $100,000 or more.

How does Parametric Tax Harvest Core enhance investment returns?

It enhances investment returns through ongoing tax management and systematic tax-loss harvesting, aimed at maximizing after-tax performance.

What benchmarks does Parametric Tax Harvest Core use?

Parametric Tax Harvest Core offers strategies benchmarked to the S&P 500 and Russell 3000 indices.

When was Parametric Tax Harvest Core launched?

Parametric Tax Harvest Core was launched on July 20, 2021.

What is the minimum investment for Parametric Tax Harvest Core?

The minimum investment for Parametric Tax Harvest Core is $100,000.

Who can benefit from Parametric Tax Harvest Core?

Financial advisors and their clients who are U.S. taxable investors can benefit from Parametric Tax Harvest Core.