#None #Envestnet #Tax Management #Asset Managers

Envestnet Partners with Asset Managers for Tax Efficiency

In a significant development for investors, Envestnet recently announced its collaboration with multiple asset managers to enhance tax optimization solutions without incurring additional costs. This move addresses a prevalent concern among investors regarding the expense of tax management, making it more accessible and beneficial for wealth growth.

Enhancing Financial Advisory Services

As investors increasingly prioritize tax efficiency, especially in light of their growing wealth, Envestnet's offering aims to empower financial advisors to provide improved tax-managed outcomes. Erik Preus, Group Head of Investment Solutions at Envestnet, emphasized this commitment, stating that their goal is to eliminate financial barriers associated with accessing important tax management capabilities. By partnering with participating asset managers in the Fund Strategist Tax Management Advantage program, Envestnet enables seamless access to these solutions, further supporting advisors in achieving optimal financial outcomes for their clients.

The Importance of Tax Management

Managing tax exposure is crucial for investors, as capital gains taxes can significantly affect a portfolio's overall returns. Envestnet's program is designed specifically to help advisors mitigate these taxes and ensure that portfolios are optimized according to each client’s tax sensitivity preferences. This bespoke service allows advisors to choose from varying levels of tax sensitivity—very high, high, or moderate—tailored to individual investor needs.

The evaluation process of tax implications occurs as portfolio managers make tactical changes, ultimately striving for better after-tax performance. This approach features a meticulous balancing act between adhering to investment models and considering the potential tax costs involved.

Expanding Access to Tax Management Solutions

The asset managers currently participating in this initiative include a range of reputable firms, such as Fidelity Investments, Goldman Sachs Asset Management, and T. Rowe Price, among others. Their involvement provides enterprises with the opportunity to adopt the Fund Strategist Tax Management Advantage service at no extra cost to clients. Sarah Bauer, Head of Asset Management Engagement at Envestnet, highlighted the growing demand for integrated technology platforms that encompass tax management as part of their core offerings.

By lifting the financial burden of these services, Envestnet paves the way for a broader implementation of ongoing tax management strategies—essentially equipping advisors and their clients with necessary tools while easing financial constraints.

How Investors Benefit

Investors interested in refining their financial portfolios can now explore the benefits of this innovative tax management service via advisors utilizing the Envestnet platform. The combination of free tax management services and tailored advice will yield better outcomes for clients, allowing them to experience potentially substantial tax savings.

Envestnet stands at the forefront of evolving wealth management solutions. Their recent partnership represents a significant stride toward creating more equitable financial strategies and enhancing client experiences throughout the investment lifecycle. To learn more about these developments and how they can be leveraged, clients are encouraged to engage with their respective Envestnet representatives, who can provide more information on the benefits of the program.

Conclusion

Envestnet has clearly set a new standard in financial advisory by facilitating access to advanced tax management capabilities without additional costs to investors. By partnering with notable asset managers, they reinforce their pledge to empower financial advisors, thereby enhancing the overall investment experience and fostering clients' financial well-being.

For more insights on how Envestnet is revolutionizing the financial services landscape, visit Envestnet’s official website.