Parametric Portfolio Associates LLC (Parametric), part of Morgan Stanley Investment Management (MSIM), is pleased to announce Lazard Asset Management as a new partner for the Custom Active solution, an innovative tax optimization capability for asset managers. Following the success with previously announced partner Capital Group, Parametric is introducing several new strategies that use the Custom Active solution for tax efficiency and other customization considerations.

“The Custom Active solution enables asset managers to greatly enhance their well-established strategies by providing tax efficiency, personalization and flexibility not available in other vehicle structures,” said Thomas Lee, Co-President and Chief Investment Officer at Parametric. “We are pleased to expand our product set with these latest strategies and help our partners meet the strong investor demand for investment strategies with active tax management and other customization features.”

The platform has grown to capture a wide range of well-established active equity strategies from Lazard Asset Management, and Capital Group, as well as MSIM investment teams including Eaton Vance, Calvert, and International Equity.

Strategies Tax-Managed by Parametric include:

• Calvert International ADR
• Capital Group Global Equity ADR
• Capital Group International Equity SMA
• Capital Group U.S. Income and Growth SMA
• Eaton Vance Large-Cap Value
• Eaton Vance Small-Cap
• Lazard Asset Management Emerging Markets Equity Select ADR
• Lazard Asset Management International Equity Select w/ Emerging Markets ADR
• Morgan Stanley Global Franchise ADR
• Morgan Stanley International Resilience ADR

All the active equity strategies use Parametric’s Custom Active solution to support complex investment needs through an active separately managed account (SMA) optimized for tax management. The SMAs also offer additional customization opportunities including sector and industry screens, and client-directed gain/risk budgets.

“As a pioneer in tax-managed overlays and customization with over three decades of experience, Parametric is well-equipped to provide products that help financial advisors meet their clients’ demand for tax efficiency and other investment considerations,” said Matt Witkos, Head of North America Intermediary Sales, MSIM. “Through Custom Active, we are able to elevate strategies from industry leaders and build a portfolio that meets an individual’s investment goals.”

Parametric implements an actively managed model provided by its asset management partners and seeks to systematically offset gains with losses through year-round tax optimization review. The Custom Active solution is offered through Parametric’s $42 billion Centralized Portfolio Management business that has $4 billion in tax-managed model strategies. The strategies are available to retail investors through select intermediaries and registered investment advisers (RIAs).

About Parametric

Parametric partners with advisors, institutions, and consultants to build innovative portfolio solutions focused on achieving their long-term financial objectives. A leader in custom solutions for more than 30 years, Parametric helps investors efficiently access market exposure, solve implementation challenges, and design multi-asset portfolios that respond to evolving needs. Parametric also offers systematic alpha strategies to complement clients’ core holdings. Parametric is part of Morgan Stanley Investment Management, the asset management division of Morgan Stanley. Learn more at parametricportfolio.com.

About Morgan Stanley Investment Management

Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 1,400 investment professionals around the world and $1.6 trillion in assets under management or supervision as of September 30, 2024. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service, and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide. For further information about Morgan Stanley Investment Management, please visit www.morganstanley.com/im.

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