PMC, the investment management arm of Envestnet, has announced that it will begin offering two tax overlay services that will allow advisers to potentially improve their clients’ absolute returns by reducing the impact of tax liabilities. The offering will include the introduction of a new tax management solution, the PMC Tax Management Service, as well as a new tax-sensitive overlay service scheduled to be unveiled later this year.
The PMC Tax Management Service is best suited to affluent tax-sensitive clients who have separate account strategies who want ongoing tax management, or those who need to transition investments between platforms or managers, but do not want to realize significant gains. The service is supported by Metamorphosis Money Management. Using M3’s methodology and trade optimization system, the service seizes upon the daily volatility in the stock market to either chip away at investor’s capital gains tax bills, or stock pile tax losses that can be used to offset gains months or even years into the future.
