Morgan Stanley Investment Management (MSIM) announced the introduction of Tax Optimized Portfolio Solutions (TOPS) by its Wealth Strategies Group, a new tool designed to integrate a broad suite of tax management solutions from MSIM, Eaton Vance, and Parametric Portfolio Associates to deliver personalized outcomes for individual clients.
TOPS addresses complex portfolio challenges including managing volatility, enhancing total return, generating income, planning legacies, and understanding investment tax implications through an integrated and highly customized approach.
Brian Smith, Co-Head of the Wealth Strategies Group, commented on the new offering, stating, “The power of TOPS is bringing together various component pieces and enhancing their individual value by combining them in highly customized ways.” Smith added that the team utilizes TOPS to analyze client-specific financial attributes, developing tailored solutions that align with complex financial planning to provide improved tax outcomes and add value to advisor-client relationships.
TOPS interprets features from a range of tax management solutions, pioneered by Eaton Vance and Parametric, to assist advisors in allocating client assets more effectively. This aims to maximize tax efficiency, generate alpha and income, address complex portfolio concerns, and align investments with client priorities. Solutions leveraged include Parametric’s direct indexing, long/short extension, custom option overlay programs, and tax-optimized ladders, alongside tools for diversifying concentrated stock positions and specialized tax-advantaged charitable giving vehicles.
Matt Witkos, Head of North America Intermediary Sales, emphasized the necessity of in-depth knowledge regarding each individual’s and family’s circumstances, preferences, and risk tolerance, requiring accommodation for a broad range of specifications. Witkos explained that TOPS enables the Wealth Strategies Group to identify the most relevant solutions, which provide greater value when combined in a customized, results-oriented manner, and to offer a continuous glidepath as markets and investor preferences evolve.
Regarding TOPS’ role with advisors, Witkos noted, “TOPS is a tool that combined with our expertise, positions advisors to be their clients’ trusted advocate and allows them to generate efficient, customized portfolios.”
Parametric has over 30 years of experience in custom solutions, aiding investors in efficiently accessing market exposure, resolving implementation challenges, and designing multi-asset portfolios responsive to evolving needs such as tax management. Parametric also offers systematic alpha strategies designed to complement core holdings. This innovative approach to customization and efficiency from Parametric, combined with Eaton Vance’s decades-long focus on tax-efficient investing, establishes a foundation for the TOPS tool.
Morgan Stanley Investment Management, along with its investment advisory affiliates, manages or supervises $1.7 trillion in assets as of June 30, 2025, and employs more than 1,400 investment professionals globally. The firm aims to provide long-term investment performance, service, and comprehensive investment management solutions to a diverse client base, including governments, institutions, corporations, and individuals worldwide.
Morgan Stanley (NYSE: MS) operates as a leading global financial services firm, offering investment banking, securities, wealth management, and investment management services. With offices in 42 countries, Morgan Stanley serves clients globally, including corporations, governments, institutions, and individuals.
