If an investor has ever asked “Can you help me pay less in taxes?” then you’re not alone. According to the latest research by Cerulli Associates, nearly 70% of affluent investors say it’s important that their wealth manager helps them reduce their tax bill, and 78% want their accounts customized to their specific situation.
That’s a big shift in expectations—changing the way advisors and asset managers approach portfolio construction. What’s driving this evolution?
Cerulli’s new report, Customized at Scale: A Framework for Next-Generation Advisory Platforms,1 is packed with insights from 26 executive interviews and thousands of data points, diving deep into the trends shaping wealth management today. Here’s a quick overview:
Tax management is now table stakes
For high net worth clients—think $5 million and up—tax minimization and wealth preservation are the top investment objectives. Advisors are responding by making tax management a core part of their value proposition: Almost half now offer tax planning services to clients—jumping to 53% for those serving the ultra-wealthy.
But it’s not only for the wealthiest investors. Cerulli finds that advanced tax management capabilities are quickly migrating “down market” to mass-affluent clients with up to $2 million to invest. Advisors who can demonstrate real, tangible tax savings are differentiating themselves in this crowded field.
Customization is the new standard
Investors expect customization in every part of their lives—from grocery delivery to streaming services. So why not in their portfolios? Direct indexing, custom bond SMAs and tax-managed equity strategies are becoming mainstream. The challenge? Few firms have built truly comprehensive platforms that can deliver customization and tax management at scale.
That’s where Parametric comes in. With almost 230,000 separately managed accounts that hold over $400 billion in AUM as of June 30, Parametric is a pioneer in direct indexing and portfolio customization. Our technology and expertise help advisors deliver household-level tax management, not just account-level tweaks.
Cerulli’s report highlights three big takeaways for advisors:
- Tax management is no longer optional. Clients expect it, and advisors who deliver it can justify their fees and deepen their relationships.
- Customization drives client satisfaction. Advisors who can tailor portfolios to individual needs—across accounts, goals and tax situations—can provide more value to their clients.
- Choosing the right partner matters. Most firms lack the scale or resources to build these capabilities in-house. Partnering with a specialist like Parametric gives advisors and their clients access to best-in-class solutions—without the complexity of working with multiple providers.
The bottom line
The future of wealth management is personalized, tax-aware and scalable. Parametric is ready to guide you there. To explore all the data and insights, download the full Cerulli report here. If you’re curious how Parametric can help you deliver next-generation customization and tax management for your clients, let’s talk.
1 Cerulli Associates is an international research and consulting firm that provides financial institutions with guidance in strategic positioning and new business development. This study was sponsored by Parametric. Parametric is not affiliated with Cerulli Associates or any of its affiliates.
Parametric and Morgan Stanley do not provide legal, tax, or accounting advice or services. Clients should consult with their own tax or legal advisor prior to entering into any transaction or strategy described herein.
The views expressed in these posts are those of the authors and are current only through the date stated. These views are subject to change at any time based upon market or other conditions, and Parametric and its affiliates disclaim any responsibility to update such views. These views may not be relied upon as investment advice and, because investment decisions for Parametric are based on many factors, may not be relied upon as an indication of trading intent on behalf of any Parametric strategy. The discussion herein is general in nature and is provided for informational purposes only. There is no guarantee as to its accuracy or completeness. Past performance is no guarantee of future results. All investments are subject to the risk of loss. Prospective investors should consult with a tax or legal advisor before making any investment decision. Please refer to the Disclosure page on our website for important information about investments and risks.
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