Several money managers have already launched investment products that are positioned as being tax aware. They claim to address the aforementioned issues and they appear to be selling well with investors. As these firms are able to significantly grow their asset base, they will exert enormous pressure on the rest of the industry to reconcile the somewhat conflicting paradigms of the Pension and Trust industry. The marketplace will continue to force the wrap industry to bridge the two paradigms. The need for the consultant to know the client's entire situation and to therefore have fees and services for the entire relationship will propel the industry into the next epoch of enhanced services and products.
Investors hate paying taxes.
Wall Street has always responded to fill the needs of the marketplace. We will do so again.