Customization and Tax Management Dominate Advisor Research Study

Audio By Carbonatix

NEW YORK--(BUSINESS WIRE)--Oct 1, 2025--

Customization and tax management are key priorities for the vast majority of affluent investors according to a new research study authored by Cerulli Associates. Parametric Portfolio Associates, LLC (Parametric) engaged Cerulli to research and develop a report detailing the evolving role of customization within the U.S. retail wealth management industry. Customized at Scale: A Framework for Next-Generation Advisory Platforms reveals comprehensive tax-aware portfolio customization is shaping the future of wealth management and indicates that scalable, tax customization is rapidly becoming a baseline expectation not just for high-net-worth (HNW) clients, but increasingly for investors of all levels.

Report Key Findings

• Nearly 80% of affluent investors surveyed agree that account customization is important to meet their specific situations; close to 70% prioritize providers who help reduce their tax bill.
• Tax minimization is now the most important investment objective for HNW-focused practices with 73% considering it “very important.”
• Nearly half (47%) of financial advisors now offer tax planning services, with this figure rising to 53% among those serving clients with over $5 million in investable assets.
• Financial advisor-managed HNW client assets have surged from 49% market share in 2013 to 66% in 2023, totaling $20.6 trillion.
• 82% of managed account sponsors rank improving tax management capabilities as a top three priority for platform development.

“Investors today expect the same level of customization from their financial services providers as they do from everyday tools that help them shop, eat and choose their preferred entertainment,” said Thomas Lee, Co-President and Chief Investment Officer, Parametric. “Our technology-enabled solutions go beyond traditional investment management to address a range of evolving client needs with hyper customization transforming how advisors work with clients at every life stage.”

This research reveals that tax management is no longer a point of differentiation for advisors and instead a baseline service.

Matt Witkos, Head of Intermediary Sales, Morgan Stanley Investment Management, noted that advisors increasingly need to address complex financial planning needs while maintaining their focus on tax management. “We have been leaders in tax efficient investing for nearly 65 years and through our affiliation with Parametric, we have expanded our highly customizable set of solutions to better address specific portfolio needs that vary as life circumstances change,” he said. “The ability to adapt investment strategies as investors’ lives change while also looking at the tax implications for possible efficiencies creates value and strengthens the advisor-client relationship.”

The report also examines the processes and products enabling customized outcomes, including direct indexing, custom bond SMAs, tax-managed equity long/short strategies and options overlays. It provides a framework for wealth managers and financial advisors to pursue leading capabilities and avoid common pitfalls in platform development and advisor adoption.

The report shows that holistic financial planning and household level oversight also emerged as priorities.

Mr. Lee noted that how advisors interact with clients has changed. “The value proposition has shifted from simply managing investments to holistic financial planning using investments to achieve specific goals—especially through tax management and customization,” said Mr. Lee. “Not only do we help advisors identify the right balance of potential losses to offset gains for tax purposes, but we also identify potential savings and present thoughtful options that reposition portfolios to look beyond tax management to address the core client need.”

The report details how wealth managers, asset managers, and technology providers are innovating to deliver scalable customization, particularly around tax management, and explores the strategic decisions firms face in building, acquiring or partnering to access these capabilities.

The research study draws on in-depth interviews with 26 industry executives and data from Cerulli’s industry-leading databases and highlights a significant evolution underway in the wealth management industry, driven by increasing demand from both investors and financial advisors for personalized solutions—especially those focused on tax management.

About Cerulli Associates:
For over 30 years, Cerulli has provided global asset and wealth management firms with unmatched, actionable insights. Headquartered in Boston, Cerulli Associates is an international research and consulting firm that provides financial institutions with guidance in strategic positioning and new business development. Our analysts blend industry knowledge, original research, and data analysis to bring perspective to current market conditions and forecasts for future developments.

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 $1.7 trillion in assets under management or supervision as of June 30, 2025. 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.

View source version on businesswire.com:https://www.businesswire.com/news/home/20251001194351/en/

CONTACT: Media Relations:

Colleen McElhinney

617.672.8995

KEYWORD: NEW YORK UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: PERSONAL FINANCE FINANCE BANKING PROFESSIONAL SERVICES ASSET MANAGEMENT

SOURCE: Parametric Portfolio Associates, LLC

Copyright Business Wire 2025.

PUB: 10/01/2025 02:08 PM/DISC: 10/01/2025 02:07 PM

http://www.businesswire.com/news/home/20251001194351/en