Envestnet Enhances Tax Management Service with Strong After-Tax Performance
Envestnet has strengthened its UMA Tax Overlay service, delivering an average after-tax benefit of +1.96% for the full 2025 tax year across nearly all participating accounts. The program offers active and holistic tax management by combining strategies such as tax-lot-level trading, capital gains budgeting, deferral, and ongoing loss harvesting to optimize taxable portfolios throughout the year. The UMA Tax Overlay is part of Envestnet’s broader commitment to continuous tax planning rather than just end-of-year efforts. As of March 31, 2026, it manages approximately $26 billion in assets across its related programs and has seen a three-year compound annual growth rate of about 29%. The service is tailored for high-net-worth clients with an average account size of around $2 million. The program’s performance highlights include avoiding over $25,000 in estimated tax liability per account on average while incurring approximately $1,700 annually in service costs. Accounts heavily invested in actively managed sleeves saw the highest benefits, achieving up to 2.34% after-tax returns.
Topics: after-tax returns investment management tax efficiency UMA Tax Overlay