The PMC Tax Management Service, designed to help advisers unlock frozen assets, prospect new business and attract held away assets, takes advantage of today’s market volatility in two ways: It seizes upon the volatility to either chip away at investors’ capital gains tax bills or to stockpile tax losses that can be used to offset future gains.
“An often overlooked value of stock losses is that they carry forward forever,” says John Phoenix, president of
The service is best suited for affluent clients with separate accounts looking for constant tax management, as well as clients who are transitioning their investments between platforms or managers and want to avoid realizing significant gains.
This is the first of two tax service overlays Envestnet plans to launch in 2009. The other, a new tax sensitive overlay service that will harvest tax losses year round and will be built to integrate onto the Envestnet platform, will be launched later this year.