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Envestnet

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Tax Loss Harvesting for Enhanced Portfolio Efficiency | Envestnet envestnet.com Envestnet 18 facts

claimThe Envestnet values overlay program allows clients to apply customized values-based restrictions to their investment portfolios.

claimEnvestnet provides 'always-on' tax overlay solutions designed to help financial advisors manage client portfolios with tax sensitivity and scale their business.

claimEnvestnet tax management services are limited in scope and are not designed to permanently eliminate taxes in a client's account.

referenceThe 'Investment Methodology Guide' summarizes the research and portfolio construction work of Portfolio Management Consultants (PMC), which are embedded into services available on the Envestnet platform.

procedureThe process of deploying tax-loss harvesting strategies consists of six steps: (1) Identify losses by evaluating portfolios for investment losses that can be harvested without disrupting the broader allocation; (2) Realize losses by executing trades to sell investments that no longer serve the portfolio; (3) Offset gains by applying realized losses to reduce exposure to capital gains taxes; (4) Decrease tax liability by using Envestnet’s tax overlay to deliver automated, risk-based strategies; (5) Reinvest by reallocating proceeds into similar assets without triggering the wash sale rule; (6) Monitor and adjust by tracking performance and rebalancing opportunities through a tax-aware lens using Envestnet’s integrated platform.

claimTax statements provided by Envestnet are not intended to be used for the purpose of avoiding U.S. federal, state, or local tax penalties.

claimEnvestnet does not guarantee that an account's performance will remain within any specific range of the selected investment strategy or the strategy's benchmark.

claimEnvestnet provides tax overlay solutions, including direct indexing and dynamic overlays, designed to help advisors manage client portfolios with tax sensitivity and automate tax-efficient strategies.

perspectiveEnvestnet states that information, analysis, and opinions expressed in their materials are for general information only and do not constitute legal, tax, securities, or investment advice.

procedureWhen providing tax overlay services, Envestnet allows a client's account to deviate from the client's selected investment strategy.

claimEnvestnet and Envestnet | PMC do not provide tax, accounting, or legal advice to clients.

referenceEnvestnet’s 'Intelligent Financial Life' concept represents a shift in the approach to financial management, as detailed in the whitepaper 'Unlocking Personalization at Scale to Better Help Serve Clients Today and Tomorrow'.

claimThe Envestnet Tax Overlay Service is designed to help reduce tax exposure with the goal of improving after-tax returns for investors.

claimActive ETFs can offer significant tax reductions on average compared to active mutual funds in three of the four categories examined by Envestnet.

claimEnvestnet defines the 'Intelligent Financial Life' as a shift in the approach to financial management.

perspectiveEnvestnet claims its platform supports tax-loss harvesting at scale and deepens client trust by providing better tax-saving outcomes.

claimEnvestnet’s platform supports tax-loss harvesting by providing tools for tax-intelligent trading, which aims to support scale and deepen client trust through improved tax saving outcomes.

claimInvesting carries certain risks, and there is no assurance that investing in accordance with the portfolios or strategies mentioned by Envestnet will provide positive performance over any period of time, and investors could lose money.

An Exploratory Study of the Wealthy's Investment Beliefs ... financialplanningassociation.org Journal of Financial Planning Mar 1, 2025 3 facts

referenceResearch by Cerulli (2022) and Envestnet (2023) highlights the importance of non-financial benefits provided by financial advisers to their clients.

referenceEnvestnet published 'Unlock the Mindset of Today’s Affluent Investor' in 2023.

claimEnvestnet (2023) found that high-net-worth individuals value financial advisers for helping them remain focused on the long term during market fluctuations, providing peace of mind, and reducing stress and anxiety.