Partnerships Drive Expansion of Parametric’s Custom Active Platform with 35+ New Strategies
Parametric Portfolio Associates LLC (Parametric), a division of Morgan Stanley Investment Management (MSIM), has announced substantial growth for its Custom Active solution, thanks to several new partnerships with top asset managers. These include partnerships with Columbia Threadneedle Investments, Lord Abbett, PGIM, Polen Capital, and Voya Investment Management. The expansion also incorporates more than 35 new active equity strategies that have been tailored to provide tax-optimized management, increasing the overall diversity and customization offered through the Custom Active platform.
In an effort to meet the increasing demand for tax-efficient solutions, Parametric has introduced these new strategies from its partnerships with Columbia Threadneedle, Lord Abbett, PGIM, Polen Capital, and Voya Investment Management. The platform now includes more than 45 strategies, drawing from both MSIM’s own investment teams and its established partners, including Capital Group and Lazard Asset Management. The goal is to offer investors the flexibility to customize portfolios for tax management and other specific preferences.
Thomas Lee, Co-President and Chief Investment Officer at Parametric, discussed the value of these new partnerships, stating, “We are excited by the substantial growth of the Custom Active platform with the addition of more than 35 new strategies from our MSIM investment teams, our existing partners Capital Group and Lazard Asset Management, and our latest partners Columbia Threadneedle, Lord Abbett, PGIM, Polen Capital, and Voya Investment Management.” He emphasized that Parametric’s experience in handling complex investor needs has positioned the firm to cater to rising demand for customized investment solutions.
The Custom Active platform’s expansion comes with 11 new strategies from these new partnerships. This includes strategies from Columbia Threadneedle, Lord Abbett, PGIM’s Jennison Associates, Polen Capital, and Voya Investment Management. Furthermore, Parametric added 10 strategies from existing partnerships with Capital Group and Lazard Asset Management. MSIM investment teams contributed 13 more new strategies, including those from Atlanta Capital, Calvert, Eaton Vance, International Equity, and Counterpoint Global.
These additions help the platform cater to a wide array of investor needs by offering more tax-optimized equity strategies. The newly introduced strategies include:
- Partnership with Atlanta Capital: High Quality Focused Growth, High Quality Growth Plus, High Quality Select Equity.
- Partnership with Calvert: Equity and Mid-Cap.
- Partnership with Capital Group: Global Growth, International Growth, U.S. Conservative Growth & Income, U.S. Core, U.S. Equity, U.S. Flexible Growth & Income, U.S. Growth, and World Dividend Growers.
- Partnership with Columbia Threadneedle: Contrarian Core, Dividend Income, and Small Cap Growth.
- Partnership with Eaton Vance: Large Cap Growth and Mid-Cap Value.
- Partnership with Jennison Associates: Global Equity Opportunities, Large Cap Growth Equity, and Mid-Cap Growth Equity.
- Partnership with Lazard Asset Management: U.S. Equity Select.
- Partnership with Lord Abbett: Large Cap Value.
- Partnership with Polen Capital: Focus Growth, Global Growth ADR, International Growth ADR, and U.S. Small Company Growth.
- Partnership with Voya Investment Management: Large Cap Growth and Large Cap Value.
Matt Witkos, Head of North America Intermediary Sales at MSIM, further explained that these partnerships reflect the growing need among individual investors and financial advisors for tax efficiency and customization. He noted, “There is clear industry demand for tax efficiency and customization beyond what can be achieved in a traditional vehicle structure, and by using Parametric’s solution, asset managers can enhance their existing strategies accordingly, meeting evolving investor needs.”
The Custom Active solution is designed to address complex investment needs via actively managed separately managed accounts (SMAs), optimized for tax management and other specific investor considerations. Investors benefit from additional customization options such as sector and industry screens, and client-directed gain/risk budgets. Partnerships with asset managers ensure that these strategies are actively managed and undergo year-round tax optimization to maintain tax efficiency.
This expanded platform is part of Parametric’s $42 billion Centralized Portfolio Management business, which also includes $4 billion in tax-managed model strategies. The strategies are available to retail investors through select intermediaries and registered investment advisers (RIAs), extending the platform’s reach across a broader investor base.
With over 30 years of experience, Parametric continues to lead in custom solutions, partnering with advisors, institutions, and consultants to help clients achieve their long-term financial objectives. The firm focuses on helping investors efficiently access market exposure, solve implementation challenges, and design multi-asset portfolios that adapt to evolving needs. In addition, Parametric offers systematic alpha strategies to complement clients’ core holdings.
Parametric’s partnerships with top asset managers and its focus on tax-efficient, customizable investment strategies position the firm to remain at the forefront of investment management. As part of Morgan Stanley Investment Management, which manages $1.7 trillion in assets, Parametric is well-equipped to continue driving innovation through its Custom Active solution and ongoing partnerships.
In conclusion, the growth of the Custom Active platform, bolstered by new partnerships and more than 35 new strategies, demonstrates Parametric’s commitment to providing asset managers with highly customizable, tax-efficient investment solutions. By responding to the evolving needs of investors through these partnerships, Parametric ensures that its solutions remain relevant and valuable in today’s investment landscape.nt space.
