Coordination across sub-accounts of a U.S.-based individual investor can potentially uncover opportunities to more effectively manage tax liability. Our case study found this result independent of the client’s benchmark-tracking and tax preferences.

The concept of tax alpha can help a wealth manager explain a client’s after-tax performance. In a new article in the Journal of Wealth Management, we propose two frameworks for the after-tax calculation used to measure tax alpha. 

For wealth managers and financial advisers seeking customized solutions to meet growing client demand, rules-based management approaches for model portfolios may offer opportunities to improve on traditional management approaches.    

Do green and non-green bonds differ in liquidity? In addition to bid-ask spreads, we consider other bond characteristics, such as credit spread, duration, issue size and time since issuance, to isolate and quantify the liquidity effect of the bond’s label. 

Householding applies one target asset allocation across all family assets and manages them holistically for the highest practicable after-tax return. We compare the outcomes of two use cases for householding vs. a single-portfolio approach. 

The SEC recently proposed amendments to the liquidity classification of open-end investment funds, aimed at standardizing reporting practices. But under the proposed approach, many large equity funds could exceed regulatory limits.

The Securities and Exchange Commission’s proposed liquidity-rule amendments aim to better prepare open-end investment funds for stressed conditions. But could the plan also produce unintended, counterintuitive results during volatile periods?

As thematic equity ETFs have grown in popularity, concerns have been raised about their liquidity — especially when an ETF holds a large fraction of a constituent’s shares. How can ETF investors get a handle on this risk? 

Laszlo Hollo, who works on MSCI’s risk management and liquidity core research team, details how sudden and powerful shocks to the system in March led to decreased liquidity across asset classes -- including investment-grade and high yield bonds, and even caused uncertainty for U.S. Treasurys. Liquidity has improved since then. Have markets simply caught their breath? Or have actions taken by the Federal Reserve, the Bank of England and other central banks improved the situation.

When the Woodford Equity Income Fund suspended redemptions on June 3, 2019, it showed how, when a fund’s liquidity profile is misaligned with its shareholder profile and redemption constraints, a single large redemption request can trigger gating.