Tax overlay is a holistic service that enables advisors and
investors to address needs around tax management while
minimizing the affect these client specific customization
requirements have on their investment portfolios. Tax overlay
makes the customization possibilities of managed sleeves
practical, scalable, and broadly applied.
OVERVIEW
Versus Purchase (VSP) Trading
Identifies which tax lot to sell at the
custodian, and if there are multiple tax
lots for the same security, tax overlay
will identify which tax lot should be sold
resulting in the lowest capital gains.
Client specific tax budgets
Investors can express to Envestnet |
PMC their desire to limit the amount of
capital gains realized on a yearly basis
while maintaining reasonable tracking
error.
Short-term gain/loss matching
Immediately harvest a short-term loss in
the account to offset a short-term gain.
Risk-Based Optimization Process
This patented process incorporates strict
adherence to each investment manager's
strategy within the UMA (including
overall risk profile) and centralizes the
discretionary authority, providing a single
investment solution.
Deferring short-term gains
Envestnet | PMC can delay the sale of a
security to allow the security to mature
from short term gains to long term gains.
Tax loss harvesting
Looking back at what gains were realized
year to date and then harvesting losses
in the portfolio to reduce the tax burden.
HOW IT WORKS
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