07.20.26

Advisor Platforms Focusing on Taxes, Not Stock Picks

by: Jennifer Lea Reed

Cerulli Associates reports that managed account platforms are prioritizing tax optimization over investment selection as the most reliable way to improve client outcomes. In a recent survey, 76% of platform sponsors cited improving tax management as their top development priority, ahead of adding illiquid products. While tax-loss harvesting is widely available, other tools such as automated tax transitions, asset location optimization and tax-smart withdrawals remain less common. Cerulli expects unified managed household platforms and broader tax capabilities to grow as managed accounts expand. Advisors who adopt these tools may improve client retention and demonstrate greater value through after-tax returns.

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