A complete solution for tax-aware portfolio management
Effective tax management is more than tax-loss harvesting. It requires a comprehensive, systematic approach that considers the tax implications of every investment decision.
MyVest’s Strategic Portfolio System™ makes tax management best practices more accessible and consistently applied in a full-service portfolio management system. Learn more about why MyVest is the leader in tax management, from tax overlay to transitions to reporting.
Industry-leading, Comprehensive Tax Overlay
Our sophisticated, systematic tax overlay technology automatically rebalances portfolios while considering the tax impact of all trading decisions. SPS has the flexibility for you to configure tax overlay to the unique needs of your managed accounts programs, including Rep-as-PM and centrally managed UMAs. SPS tax overlay and portfolio optimization delivers:
Tax optimization
- Proactive tax-loss harvesting
- Smart gain deferral
- Intelligent security-level substitutions
- Dynamic asset location
Tax management
- Household-level tax budgeting
- Household wash sale management
- Tax opportunity monitoring & alerts
- Best tax lot selection
- What-if analysis for recommended trades
Tax-Aware Portfolio Transitions
Our capabilities help firms and advisors automate and deliver portfolio transitions at scale more efficiently.
SPS starts by automatically generating a smart initial transition plan informed by firm-defined rules and a client’s personalized inputs. The advisor reviews the proposed plan and iterates with their client as needed to strike the preferred balance between tax impact and adherence to the target strategy.
Once the final plan is approved it’s encoded in SPS’s portfolio management suite where transition tools make it easy to aggregate, track and manage groups of portfolios in transition on a day-to-day basis.
Key transition capabilities of SPS help advisors
- Establish the balance between tax impact and adherence to a new target strategy
- Automate keep-sell analysis of legacy securities
- Establish a tax budget to control the pace of a transition
- Calculate and share the tax savings impact and ongoing progress with clients
Built to support the enterprise
- Manage portfolio transitions across an enterprise’s multiple managed account programs (UMA, Rep-as-PM, and bank trust), from plan generation to execution
- Give firms the the option for transitions to be advisor managed or delegated to a central team for management in bulk
Transitioning a client’s legacy portfolio — How it’s done in SPS
Taking a common example, a client’s portfolio is highly concentrated in low-basis company stock with large embedded gains across many different tax lots.
Objective
Transition legacy portfolio into a new investment strategy while reducing company stock exposure.
Evaluation
SPS determines that the company stock can substitute for a position in the new investment strategy, allowing it to be gradually reduced and sold opportunistically over time.
Transition plan
SPS proposes an initial transition plan informed by the client’s tax profile, personalizations and capital gains budget. Advisor and client adjust and agree on the level of tax impact, tracking error, and time to transition the portfolio.
Transition management
SPS’s daily rebalancing process then automates the ongoing execution and monitoring of the transition plan.
Expand tax budget
Once the transition plan is implemented there is an ongoing opportunity to proactively harvest losses to offset gains throughout the year. This expands the client’s tax budget and can also help accelerate time to complete the transition.
Tax Impact Reporting
Along with the tools to deliver tax savings, SPS generates reporting that makes it easier for advisors to improve client conversations and demonstrate their value to clients.
Tax impact reporting breaks down taxable events (income, short-term gains, and long-term gains), enabling advisors to show clients the extent to which each source has been shielded from taxes.
MyVest’s reporting quantifies specific tax management outcomes provided by our Strategic Portfolio System™ (SPS) for each portfolio including tax-loss harvesting, asset location, gain deferral and more. 
