Strategic Tax Management
Envestnet | Placemark uses a sophisticated tax-optimization engine that measures and considers the tax costs for potential security sales in making all portfolio construction decisions. The primary cost of taxes in client portfolios is in the form of realized short-term capital gains, and Placemark’s tax management process seeks to minimize and in most instances eliminate short-term capital gains realization. By accurately modeling the tax impact of all trades specific to the client’s tax rates and considering realized gains and losses both within the portfolio and externally, Placemark seeks to deliver the pre-tax returns of the underlying managers and portfolios while improving after-tax returns.
For more complex client situations such as transitioning portfolios, incorporating the risk of low basis positions, deferring long-term capital gains to reduce susceptibility to the alternative minimum tax, budgeting tax exposures and incorporating taxable events from held away assets, strategic tax management offers advisors the most comprehensive solutions for their most demanding and tax sensitive clients.