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Tom Lee, co-president and CIO of Parametric, discusses how investor expectations are shifting from standardized investment products toward highly customized portfolios. He describes the “hyper- customization of finance,” where portfolios can be tailored around an investor’s individual circumstances, including values, concentrated stock positions, factor preferences and existing exposures, while still pursuing index-like outcomes. Tom explains that this evolution is transforming asset management from a product-oriented business into a service model, with technology allowing Parametric to deliver customization at scale. “We’re moving to a world where we’re not selling products anymore, we’re selling a service.”
About Evercore: Flow of Funds with Glenn Schorr
Evercore's Flow of Funds with Glenn Schorr is a smart, timely look inside the forces shaping private markets, wealth management, and the financial institutions behind them. Hosted by Glenn Schorr, Senior Managing Director and leading equity analyst at Evercore ISI, the show features a mix of sharp market analysis, Glenn’s own perspective, and conversations with top executives, investors, and industry leaders.
Risk disclosures:
The views and opinions are those of the author as of the date of publication and are subject to change at any time due to market or economic conditions and may not necessarily come to pass. The views expressed do not reflect the opinions of all investment personnel at Morgan Stanley Investment Management (MSIM) and its subsidiaries and affiliates (collectively the Firm”), and may not be reflected in all the strategies and products that the Firm offers.
There is no assurance that a separately managed account (“SMA”) will achieve its investment objective. SMAs are subject to market risk, which is the possibility that the market values of the securities in an account will decline and that the value of the securities may therefore be less than what you paid for them. Market values can change daily due to economic and other events (e.g. natural disasters, health crises, terrorism, conflicts and social unrest) that affect markets, countries, companies or governments. It is difficult to predict the timing, duration, and potential adverse effects (e.g. portfolio liquidity) of events. Accordingly, you can lose money investing in an SMA.
A short sales strategy involves selling a security borrowed by the investor, with the expectation that its price will decline, obligating the investor to later replace it at the current market price. Short sales carry unique risks, including potentially unlimited losses if the security’s price rises, additional costs for borrowing, and the possibility of forced closure under unfavorable conditions. Other risks include increased leverage, regulatory changes that may restrict short selling, and the need to provide collateral, which can reduce investment flexibility.
References to specific securities and their issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as a recommendation to purchase or sell such securities. Any specific securities mentioned are not representative of all securities purchased, sold or recommended for advisory clients. Actual portfolio holdings vary for each client and there is no guarantee that a particular client’s account will hold any, or all, of the securities identified. It should not be assumed that any of the securities or recommendations made in the future will be profitable or will equal the performance of the listed securities.
