CHICAGO—October 27, 2020—Envestnet, Inc. (NYSE: ENV) is rolling out a series of technology enhancements, including innovative features in the Envestnet | Tamarac platform that enable independent registered investment advisers (RIAs) to efficiently manage and track annual capital gains taxes in clients’ taxable accounts.
“Our new capital gains management and monitoring features give advisors and their clients the insights they need to make tax-aware—and tax-smart—investing decisions,” said Andina Anderson, Executive Managing Director of Envestnet | Tamarac. “Tamarac, and the broader Envestnet platform, are making it easier for advisors to expand the essential advice they deliver by uncovering tax opportunities for clients.”
Tamarac users can compare incurred and anticipated capital gains to budgeted capital gains and set desired annual capital gains amounts when rebalancing accounts or groups. RIAs can also utilize these tools to proactively track the capital gains an account or group has incurred year-to-date and receive rebalance warnings whenever trades incur capital gains that exceed the annual budgeted amounts.
These capabilities are made possible by Tamarac’s newly developed Annual Capital Gains Tax Budget setting, which also enables advisors to track long- and short-term gains together or individually. The new setting harnesses the existing ST Capital Gains Tax Rate and LT Capital Gains Tax Rate fields to estimate year-to-date taxes incurred by short- and long-term gains, and by current rebalances. The existing Max Gain Amount setting will continue to limit the amount of gains that a rebalance can incur.
In addition, advisors can proactively make trades that optimize for capital gains in Tamarac using the following new tools:
- Saved Search Filter: Advisors can create a saved search with their Annual Capital Gains Budget to audit for the percentage of the capital gains budget which has been met.
- Rebalancing Workflow Page Columns: New columns—Tax Budget Used, YTD Capital Gains Taxes, and Annual Capital Gains Tax Budget—can be added to the Rebalance, Trade List, and Rebalance Review pages in Tamarac to help advisors proactively plan tax-appropriate trades for each client.
- Bulk Report & Upload Columns: The Account Information bulk report in Tamarac Reporting® now includes new Annual Capital Gains Tax Budget and Annual Capital Gains Tax Budget Value Type columns, which can be uploaded to add or change capital gains budgets for many accounts or groups simultaneously.
The capital gains feature in Tamarac complement the new Mutual Fund Capital Gains Dashboard powered by Envestnet Analytics, which allows RIAs and enterprise organizations utilizing the Envestnet platform to:
- Collect estimates for distributions of mutual fund capital gains and apply them to client accounts.
- Identify and develop plans to avoid distributions.
- Eliminate manual entries.
- View client positions and funds to watch, based on indicators of potential distributions of capital gains.
- View fund reported estimates to narrow in on clients and accounts which require attention and prioritize trades that can be executed through Envestnet.
To view a demo of the capital gains management and tracking tools in Tamarac, and the Mutual Fund Capital Gains Dashboard from Envestnet Analytics, and connect with the Envestnet team at our booth, log into the Schwab IMPACT conference site and from The Exchange page click: “Engage with our sponsors.”
New Blocks Coming Soon from Envestnet | MoneyGuide’s MyBlocks™
MoneyGuide is also developing two new blocks which are currently in beta-testing—the Goal Block and Spend vs. Borrow Block. These blocks will eventually be added to the MyBlocks series, which now includes 34 bite-sized, interactive modules designed to help advisors begin conversations with clients about their goals, and how they fit into their financial plans.
- Goal Block: Simplify the goal planning process—this new goal block lets clients take control of their goals in retirement. This easy-to-use block will teach clients how to enter their essential and personal retirement expenses. These goals may be actively imported into a real financial plan or clients can use our new Goal-Sync feature to empower them to make immediate changes to their financial plan. The goal block supports client engagement by creating a lifestyle in retirement that motivates them.
- Spend vs. Borrow Block: Guides an investor to make a better-informed decision between liquidating assets and taking out a loan to pay for a specific goal. Within the block, users can easily create multiple scenarios—which take into consideration loan options based on current interest rates and credit scores, as well as financial assets—on purchases under consideration such as a car, home improvement project, and a vacation.
Envestnet Express Proposal Application
The firm’s Express Proposal Application will go live in November 2020 as a complement to the Envestnet platform’s standard proposal generator. The Express Proposal Application is designed to save advisors time, fund accounts faster, and highlight the most useful information for advisors and clients throughout the proposal process in Envestnet.
The Express Proposal Application was also developed to be shared, and to engage clients remotely, while ensuring accurate and seamless capture of data and streamlining the analysis, sales, and onboarding phases of the proposal process. Advisors can also access on-demand eLearning and product documentation directly from the Express Proposal Application, providing advisors with in-application support to fully optimize the tools.
The Express Proposal Application is also integrated with Envestnet | PMC to deliver a more intuitive Tax Overlay and Impact Overlay experience and offers eSignature through DocuSign as a service within proposals. Being able to take advantage of the eSignature feature within a proposal rather than as a separate service removes significant friction from the proposal process. In addition, Envestnet will continue to integrate the Express Proposal Application with other Envestnet and third-party technologies to allow for a seamless flow of client data into the proposal workflow. The Application already utilizes Envestnet’s existing custodial account-opening integrations to enable accounts to be opened and funded faster.
“The innovations we continue to develop at Envestnet, which are driven by feedback from our advisor partners, each play a role in streamlining the user experience—and improving outcomes for clients—across our ecosystem,” said Stuart DePina, President of Envestnet. “These product enhancements further simplify workflows for advisors to make it easier for them to deliver financial wellness to more people.”
Envestnet, Inc. (NYSE: ENV) is transforming the way financial advice and wellness are delivered. Our mission is to empower advisors and financial service providers with innovative technology, solutions, and intelligence to make financial wellness a reality for everyone. Over 103,000 advisors across more than 4,900 companies—including 16 of the 20 largest U.S. banks, 46 of the 50 largest wealth management and brokerage firms, over 500 of the largest RIAs, and hundreds of FinTech companies—leverage the Envestnet platform to grow their businesses and client relationships.
Envestnet and its affiliates and representatives do not render tax, accounting or legal advice. Any tax statements contained herein are not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state, or local tax penalties. Taxpayers should always seek advice based on their own particular circumstances from an independent tax advisor.
JConnelly for Envestnet