SEI today announced a significant expansion of its tax management and overlay capabilities for separately managed account (SMA) and unified managed account (UMA) solutions. The enhancements provide advisors with greater control, transparency, and optionality for tax-management customization, in an effort to support both immediate and long-term tax benefits for investors.
Built on the foundation of nearly two decades of tax overlay services, this expansion advances SEI’s commitment to tax minimization, which matters most according to high-net-worth advisor practices. In fact, 73% of them consider tax minimization as their top investment objective priority¹.
Designed to help advisors optimize tax outcomes, SEI’s Tax Management and Overlay capabilities now feature a more robust process. From tax transition analysis, through implementation and portfolio design, to portfolio management and client-centric reporting, these capabilities are designed to integrate tax considerations through multiple phases of the wealth management process and add value to advisor-client relationships. With the expansion, the integrated approach supports tax optimization by:
- Transitioning existing securities, including both individual stocks and exchange-traded funds (ETFs) with thoughtful tax analysis and potential portfolio inclusion
- Coordinating trading and overlay management, including both single-strategy SMAs, direct indexing, and multi-manager UMAs, to help avoid wash sales and optimize portfolio allocations
- Enabling an annual capital gains budget, designed to intentionally target a maximum for annual gains realization, for strategic planning and tax control
- Automating tax-loss harvesting with daily security and tax-lot level analysis for opportunities to realize capital losses
- Providing investor-centric reporting with the Estimated Taxes Saved Report, which includes both year-to-date and since-inception quantified value through integrated tax management
Erich Holland, Head of Client Experience for SEI’s Advisor business, said:
“These enhancements underscore our focus on simplifying the complex and empowering investors—and deepen our belief that tax management is part of our DNA, and not just a feature. We’re setting a new standard for how modern portfolios are optimized by empowering advisors and their clients to transition portfolios with greater agility and help achieve materially improved after-tax outcomes.
“Taxes are the biggest drag on investor returns, and for advisors, that means every dollar saved through tax optimization is an opportunity to deepen client relationships, differentiate their approach, and deliver measurable value. By proactively managing tax outcomes, advisors can help clients keep more of what they earn, while streamlining their operations and driving organic growth for their business.”
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