Chris Loveless Says Advisors Need Portfolios That Can Bend
The most important part of Chris Loveless’ message is not that advisors want more personalization. Advisors have said that for years. The real point is sharper: personalization is becoming useless unless it can handle taxes, transitions and real client constraints at the same time.
Loveless, president of O’Shaughnessy Asset Management, told InvestmentNews that recent volatility has not slowed advisor demand for personalized, tax-managed portfolios. If anything, volatility has made the value proposition easier to explain. When markets move, advisors can harvest losses, reset cost bases and transition clients more thoughtfully instead of treating every downturn as a threat.
That is a different way to frame market stress.
For OSAM, the opportunity sits inside a broader advisor problem. Many advisors win new relationships only to inherit portfolios full of low-cost-basis positions, legacy allocations, concentrated stock, old fund holdings, values preferences and tax-sensitive constraints. The advisor may know the client needs a better allocation, but moving too fast can create a tax bill that damages trust before the relationship has even begun.
That is why tax-managed personalization is becoming infrastructure, not decoration.
A client does not only need a better portfolio on paper. The client needs a path from the old portfolio to the new one. That path is where advisors can win or lose the relationship.
TL;DR
Chris Loveless says advisor demand is rising: OSAM’s president told InvestmentNews that advisors increasingly want tax-managed, personalized portfolio solutions.
Volatility can create opportunity: Market drawdowns can help advisors harvest losses, reset cost bases and transition portfolios more tax-efficiently.
Transition support is the center of the story: Advisors often inherit portfolios that are not tax-managed and need help moving clients without creating unnecessary tax friction.
Canvas is OSAM’s key platform: Franklin Templeton describes Canvas as OSAM’s tax-aware, personalized portfolio management platform.
Customization now means more than values screens: Advisors may need to account for taxes, concentrated stock, legacy holdings, factor exposure and transition timing.
OSAM’s quant identity matters: Loveless emphasized OSAM’s factor expertise and bottom-up research process as part of the firm’s differentiation.
The Franklin Templeton relationship gives scale: OSAM has kept its identity while using Franklin Templeton support to expand innovation.
The advisor takeaway is practical: Tax-managed personalization should be explained as planning infrastructure, not simply an investment product.
The Old Portfolio Is Usually The Hardest Part
InvestmentNews’ interview with Chris Loveless framed OSAM’s growth around a very practical advisor problem: clients often arrive with portfolios that are not tax-managed, not customized and not easy to move.
That is the part of the client relationship that rarely gets enough attention.
An advisor may sit down with a new client and quickly see that the current portfolio does not match the client’s goals. Maybe the client owns too much concentrated stock. Maybe the allocation is too aggressive for retirement. Maybe the portfolio is stuffed with legacy mutual funds. Maybe the client wants to avoid certain industries. Maybe the tax lots make quick changes expensive.
The advisor can design a better portfolio in theory. The real challenge is getting there.
If the advisor sells everything at once, the client may face a large tax bill. If the advisor moves too slowly, the client may stay stuck in a portfolio that no longer fits. If the advisor cannot explain the transition plan clearly, the client may wonder why they hired a new advisor in the first place.
That is where OSAM’s pitch becomes useful.
The firm is not only saying it can personalize portfolios. It is saying it can help advisors manage the difficult transition from what the client owns now to what the client should own next.
Why “Bending The Portfolio” Is The Best Phrase In The Story
Loveless described OSAM’s value proposition as the ability to bend a portfolio for taxes, values, concentrated stock positions and transition needs.
That phrase works because it captures what advisors actually need.
A rigid portfolio model may look clean, but clients are rarely clean. They arrive with tax history, emotional attachments, inherited positions, employer stock, charitable goals, restrictions and timing constraints. A one-size-fits-all model may force the advisor to choose between investment discipline and client reality.
A portfolio that can bend gives the advisor more room.
It can hold around concentrated stock. It can transition gradually. It can harvest losses. It can reflect client preferences. It can manage tracking error. It can use factor research while still respecting tax lots and client restrictions.
That does not mean every portfolio should be infinitely customized. Too much customization can create complexity, cost and monitoring challenges. But the ability to bend matters when the client’s circumstances are too specific for a standard model.
Tax Alpha Is A Client Experience Story
Tax-managed investing is often discussed in technical language, but advisors should treat it as a client experience issue.
A client may not understand every detail of tax-loss harvesting, lot-level trading or tracking error. But the client can understand one simple idea: unnecessary taxes reduce the money that stays invested for the client’s goals.
That makes after-tax outcomes easier to connect to planning.
If a retiree wants income, taxes affect spendable cash flow. If a business owner sells a company, taxes affect reinvestment decisions. If an executive owns concentrated stock, taxes affect diversification. If a family wants to give to charity, taxes affect the most efficient way to donate. If heirs inherit wealth, taxes and cost basis can shape the transition.
The portfolio is not separate from the tax plan.
This is why advisors are paying more attention to tax-managed personalization. It gives them a way to talk about investment management in a more client-centered way. Instead of focusing only on performance versus a benchmark, the advisor can focus on how much wealth remains useful after taxes.
Volatility Becomes Useful When The System Is Ready
Loveless’ comments about market volatility are important because they challenge the normal advisor reflex.
Many advisors talk about volatility as something to calm clients through. That is necessary, but it is not the full story. Volatility can also create tax-management opportunities when the advisor has the right system in place.
A market decline may allow a manager to sell positions at a loss, bank the loss for tax purposes and maintain exposure through replacement securities or a carefully managed portfolio process. That loss may later help offset gains elsewhere. For clients with taxable accounts, that can have real value.
But the opportunity is not automatic.
The advisor needs the right account structure, trading system, tax-lot visibility, portfolio rules and client expectations. A volatile market only becomes useful if the portfolio is ready to respond. Otherwise, volatility is just stress.
This is why tax-managed platforms are becoming more important. They can turn market movement into a planning tool instead of leaving advisors to manage everything manually.
Custom Indexing Is Moving From Niche To Workflow
Franklin Templeton’s OSAM page describes Canvas as a tax-aware and personalized portfolio management platform. That description is useful because it places Canvas inside the advisor workflow, not only inside the investment product shelf.
Custom indexing used to feel like a high-end feature for clients with unusual restrictions or very large taxable portfolios. That is changing.
More advisors now face clients who expect customization. Some clients want tax efficiency. Some want values alignment. Some have concentrated positions. Some are transitioning from legacy portfolios. Some want equity exposure with more control over what they own. Some want a portfolio that does not look exactly like a mutual fund or ETF.
That does not mean custom indexing will replace every fund or model portfolio. ETFs and mutual funds still work well for many clients. But custom indexing is increasingly becoming a tool advisors use when client complexity makes pooled vehicles too blunt.
The key is workflow. If customization takes too much time, advisors will not scale it. If the platform makes customization easier, adoption can grow.
The Advisor’s Real Job Is Still Suitability
Tax-managed personalization can sound powerful, but it does not remove advisor responsibility.
OSAM can manage portfolios and provide tools. The advisor still has to understand the client. The advisor still has to determine whether the strategy fits the client’s goals, tax situation, risk tolerance, account type, time horizon and liquidity needs.
That distinction matters.
A personalized portfolio is not automatically suitable just because it is personalized. A tax-managed strategy is not automatically better if the client has no meaningful taxable gains, uses tax-deferred accounts or needs a simpler structure. A customized restriction can reduce diversification. A tracking-error target can still create performance differences from a benchmark.
Advisors need to explain the trade-offs clearly.
The strongest use case is not “everyone should use this.” The strongest use case is “this can help when the client’s existing portfolio, tax situation and preferences require more precision than a standard model can provide.”
OSAM’s Quant Identity Gives The Personalization More Discipline
Loveless also emphasized that OSAM is a quant firm at heart, with factor expertise across value, momentum, yield and quality.
That detail matters because personalization can become messy without discipline.
A client may want customization, but the portfolio still needs an investment framework. If every client request leads to random changes, the result can become fragmented and hard to monitor. A factor-based process gives the portfolio a research backbone. It helps the manager decide what to own, what to avoid and how to maintain discipline while adjusting for client-specific needs.
That is the balance OSAM appears to be selling.
The portfolio can bend, but it should not break. It can reflect taxes and preferences, but it still needs a systematic investment process. It can manage tracking error, but it still needs to pursue an intended exposure.
That combination is important for advisors. Clients want personalization, but advisors still need a process they can defend.
Where Passive Replication Fits
Loveless also discussed OSAM’s passive replication portfolios, including managing to a limited tracking-error range while creating room to sell stocks at losses and re-enter positions later.
That is one reason direct indexing has grown.
A client may want exposure similar to an index, but the advisor may want more tax-management flexibility than a traditional index fund provides. A direct indexing or passive replication approach can hold individual securities, track a benchmark closely and still create tax-loss harvesting opportunities.
This structure is not magic. It has costs, operational requirements and tracking-error trade-offs. But it can be useful for taxable investors with enough account size to justify the approach.
The advisor has to explain that the goal is not to beat the index every month. The goal may be to deliver index-like exposure while improving after-tax flexibility over time.
That is a different client conversation from traditional active management.
The Transition Conversation Can Win The Relationship
The transition phase is where advisors can show value quickly.
A new client may not know whether the advisor’s long-term investment process will outperform. But the client can immediately see whether the advisor understands their tax situation, legacy holdings, risk concerns and personal preferences.
A careful transition plan can build trust.
The advisor can show which positions may be sold first, which positions may be held longer, where losses may be harvested, how concentrated stock may be reduced and how the portfolio will gradually move toward the desired allocation. That gives the client a roadmap instead of a vague promise.
This is especially important for advisors who recruit clients from other advisors.
When a client leaves one advisor for another, the client often brings an existing portfolio. The new advisor’s first impression may be the transition plan. If that plan feels thoughtful, the relationship starts well. If it feels rushed or tax-blind, the client may worry.
The Franklin Templeton Relationship Gives OSAM A Scale Test
OSAM has been part of Franklin Templeton for several years, and Loveless said the relationship has exceeded expectations while allowing OSAM to keep its identity.
That balance matters.
Boutique investment firms often worry that joining a larger asset manager will slow them down. Large asset managers often want acquired firms to scale, integrate and contribute to broader distribution. The risk is that the boutique loses its edge or the parent company fails to support what made the boutique valuable.
Loveless’ comments suggest OSAM sees the Franklin Templeton relationship as a growth enabler.
The official Franklin Templeton profile also confirms Loveless is responsible for OSAM’s business initiatives and client service and relationships, which means his comments are not only investment commentary. They speak to how OSAM is positioning itself with advisors.
For advisors, the question is whether the combination creates better support. OSAM brings the quant and custom-indexing identity. Franklin Templeton brings distribution, resources and scale.
That combination can be powerful if the culture stays fast and the tools keep improving.
Why The Asset Class Expansion Matters
InvestmentNews reported that OSAM plans to broaden its platform with more options across asset classes and strategy types, including extension strategies and more fixed income capabilities.
That matters because personalization cannot stop at U.S. equities if advisors want a broader client solution.
Many clients need full-portfolio coordination. They may have taxable equity accounts, fixed income needs, income goals, concentrated positions, options overlays, legacy holdings and liquidity requirements. If personalization applies only to one narrow sleeve, the advisor still has to stitch together the rest of the portfolio manually.
A broader platform can help advisors centralize more of the client’s taxable investment work.
That does not mean OSAM should try to be everything. But expansion can make Canvas more useful if it helps advisors manage more client problems inside one system.
The danger is complexity. The more asset classes and strategy types a platform adds, the more advisors need education, guardrails and clear use cases.
The HNW Portfolio Race Is Really About Advisor Capacity
The demand Loveless described fits a broader platform trend.
A related NJ Financial News article on Cetera’s private wealth model portfolios argued that high-net-worth portfolio tools are becoming a capacity solution for advisors who need customization, tax awareness and institutional-style support without building a full CIO desk.
OSAM’s story fits that same market shift, but from a different angle.
Cetera’s model portfolio launch was about helping advisors access scalable private wealth infrastructure. OSAM’s Canvas story is about helping advisors personalize and transition taxable portfolios with more precision. Both point to the same underlying pressure: clients are asking for more than a generic allocation, and advisors do not have unlimited time.
This is why portfolio infrastructure is becoming a recruiting and growth issue.
Advisors want platforms that help them serve more complex clients without drowning in manual work.
What Advisors Should Explain Before Using Tax-Managed Personalization
Tax-managed personalization can be compelling, but clients need plain-language expectations.
An advisor should explain that the portfolio may differ from an index or model because it is being customized around taxes, restrictions or transition needs. The advisor should explain that tax-loss harvesting depends on market conditions. The advisor should explain that tracking error is possible. The advisor should explain costs and the role of the third-party manager.
Most importantly, the advisor should explain that tax management does not guarantee better performance.
A strategy can create tax benefits in some years and fewer opportunities in others. A market that rises steadily may create less harvesting opportunity than a choppy market. A client with few gains may not benefit as much as a client with major gains elsewhere. A client using retirement accounts may have different needs than a client with large taxable assets.
The more specific the client, the more specific the explanation should be.
Questions Advisors Should Ask Before Implementing A Custom Portfolio
What is the client’s tax picture? The strategy should match realized gains, embedded gains, income needs and account type.
What needs to be transitioned? Advisors should identify legacy holdings, concentrated stock and positions with large unrealized gains.
How much tracking error is acceptable? Clients should know that customization can create performance differences from a benchmark.
Which restrictions are essential? Too many exclusions can weaken diversification or change portfolio behavior.
What is the time horizon? Tax-managed transition may require patience, especially when embedded gains are large.
How will success be measured? Advisors should define whether the goal is after-tax return, lower tax drag, smoother transition or values alignment.
Who monitors the strategy? The client should understand the roles of the advisor, OSAM and the platform provider.
These questions keep personalization from becoming a buzzword.
The Client Benefit Is Control, Not Complexity
Clients do not usually want complexity for its own sake.
They want control. They want to know that taxes are being considered. They want their legacy holdings handled carefully. They want their values respected where appropriate. They want concentrated stock managed thoughtfully. They want the advisor to avoid unnecessary taxable events. They want the portfolio to reflect their real life, not only a risk-score questionnaire.
Tax-managed personalization can help with that.
But advisors should resist the urge to over-explain every technical feature. The client benefit should be simple: the portfolio can be built and transitioned around your situation.
That is a stronger message than “we use a sophisticated custom indexing platform.”
The technology should support the client story, not replace it.
The Risk: Personalization Can Be Oversold
Every fast-growing investment trend carries a risk of overuse.
Direct indexing, custom indexing and tax-managed personalization are no exception. Some advisors may use the terms because they sound modern. Some clients may hear “tax alpha” and assume a guaranteed benefit. Some platforms may frame customization as universally superior to ETFs or funds.
That would be a mistake.
For some clients, a simple ETF portfolio may be better. For others, a model portfolio may be enough. For tax-deferred accounts, tax-loss harvesting may be irrelevant. For small accounts, the added complexity may not be worth it. For clients with too many restrictions, the portfolio may become less diversified than expected.
The advisor’s job is to match the tool to the problem.
OSAM’s platform may be powerful, but it is still a tool. The value depends on whether it solves a specific client need.
The Bigger Lesson: After-Tax Advice Is Becoming A Competitive Advantage
The Loveless interview shows where advisor value is moving.
Clients can access cheap beta almost anywhere. They can buy index funds, ETFs, robo portfolios and model allocations at low cost. That makes it harder for advisors to justify value only through asset allocation.
After-tax advice is different.
It requires understanding the client’s holdings, tax lots, goals, constraints and transition needs. It requires judgment. It requires coordination between investment management and planning. It gives the advisor a way to show value in a place where generic portfolios often fall short.
That is why tax-managed personalization is becoming more important.
It helps advisors move from product selection to implementation strategy. It turns the question from “What should the client own?” into “How do we get the client there in the smartest way?”
That second question is where many clients need the most help.
Frequently Asked Questions About OSAM, Chris Loveless And Tax-Managed Personalization
Who Is Chris Loveless?
Chris Loveless is president of O’Shaughnessy Asset Management, also known as OSAM. Franklin Templeton says he is responsible for driving OSAM’s business initiatives and overseeing the firm’s client service and relationships team.
His comments to InvestmentNews focused on advisor demand for tax-managed personalization, the role of market volatility, OSAM’s quantitative investment process and the firm’s plans to broaden its platform. His perspective matters because he sits at the intersection of OSAM’s investment identity and advisor-facing growth strategy.
What Is OSAM’s Canvas Platform?
Canvas is OSAM’s tax-aware and personalized portfolio management platform. Franklin Templeton describes it as a way to access personalized, tax-optimized portfolios at scale.
For advisors, Canvas can help create portfolios that account for taxes, client values, concentrated stock positions and transition needs. The practical value is not only customization. It is the ability to help advisors move clients from legacy portfolios into more appropriate portfolios without ignoring tax consequences.
Why Are Advisors More Interested In Tax-Managed Portfolios?
Advisors are more interested in tax-managed portfolios because many clients have taxable assets, embedded gains, concentrated stock and portfolios that were not built around their current goals. A standard model portfolio may not solve those issues cleanly.
Tax-managed strategies can help advisors transition clients more carefully, harvest losses when markets create opportunities and focus on after-tax outcomes. That can be especially valuable for high-net-worth clients, business owners, executives and families with complex planning needs.
Does Tax-Managed Personalization Guarantee Better Returns?
No. Tax-managed personalization does not guarantee better performance or better after-tax results. The benefit depends on the client’s tax situation, market conditions, account type, embedded gains, trading opportunities and how the strategy is implemented.
A tax-managed approach may be most useful for taxable accounts with meaningful gains, legacy holdings or transition needs. It may be less useful in retirement accounts or for clients whose portfolios are already simple and tax-efficient. Advisors should explain the trade-offs before recommending the strategy.
What Should Clients Ask Before Using A Custom Indexing Strategy?
Clients should ask how the portfolio will be customized, what tax benefits the advisor expects, what costs apply, how closely the portfolio may track a benchmark and what restrictions may affect diversification. They should also ask who is responsible for monitoring the strategy.
Clients should also understand the transition plan. If they own low-cost-basis securities, concentrated positions or old fund holdings, the advisor should explain how those assets will be handled over time. A good custom indexing strategy should fit the client’s broader financial plan, not simply sound sophisticated.
Further Reading
OSAM’s Chris Loveless: Advisor Demand Surges As Tax-Managed Personalization Becomes A Market-Must: InvestmentNews’ interview with Loveless on volatility, advisor adoption, tax management, OSAM’s quant process and 2026 expansion plans.
O’Shaughnessy Asset Management: Franklin Templeton’s OSAM overview, including AUM and advisement, Canvas, core investment tenets and leadership.
Christopher Loveless: Franklin Templeton’s profile of Loveless, including his role as OSAM president and business leadership responsibilities.
Cetera’s Private Wealth Portfolios Show The HNW Advisor Race Is Changing: Related NJ Financial News coverage on advisor capacity, customization and private wealth portfolio infrastructure.
