The latest developments in financial products and investments from around the world.

Envestnet | PMC
Envestnet | PMC has rolled out its Fund Strategist Tax Management Service. This offering enables advisors to manage the tax impact of fund strategist portfolio (FSP) accounts, in either third-party manager or proprietary home office mutual fund and exchange-traded fund (ETF) models.

The new offering applies to all model portfolios available through Envestnet's Fund Strategist Network, consisting of more than 140 strategist firms and over 2,000 portfolios, it said in a statement yesterday. 

PMC's Fund Strategist Tax Management Service figures out the potential tax implications of adding the service either to an existing account, or moving client assets from an existing portfolio to a new model portfolio, on the Fund Strategist Network. Depending on the selected tax-sensitivity level - moderate, high, or very high - the service will estimate tracking error to recommend trades that would balance a client's tax cost with portfolio risk.

"For many investors, capital gains taxes are the largest expense in their portfolios. Our Fund Strategist Tax Management Service makes it easy to manage capital gains tax liability for clients invested in fund strategist portfolios all year long, in an automated and continuous way," Erik Preus, CFA, managing director of Envestnet | PMC, said. 

"With this offering, we have addressed the tax-related headwinds traditionally associated with outsourcing advisor-as-portfolio-manager accounts to third-party institutional managers. Now, instead of having to liquidate account holdings right away upon investing in an FSP, regardless of the tax consequences, we can help advisors potentially manage their clients' tax costs according to individual investment goals,” Preus said.