Envestnet and Vanguard Collaborate to Deliver Tax-Efficient, Advisor-Centric Investment Solutions

Strategic Relationship Combines Vanguard’s Advisor’s Alpha^® Framework And Model Portfolios With Envestnet Adaptive WealthTech To Help Financial Advisors Maximize Tax Efficiency For Clients

Envestnet, the Adaptive WealthTech leader, announced an expanded relationship with Vanguard, one of the world’s leading investment management companies, to help transform tax-aware investing from a complex, manual process into a scalable client value proposition. The collaboration deepens how the firms jointly serve financial advisors, while expanding access to tax-efficient, personalized investment capabilities through a scalable model portfolio approach.

Vanguard’s Advisor’s Alpha^® framework is now available within Envestnet’s Wealth Management Platform and paired with its tax-aware portfolio management technology to help advisors more clearly articulate and deliver more personalized after-tax outcomes for clients.

A key focus of Vanguard’s Advisor’s Alpha framework is the delivery and synergy of tax-efficient retirement strategies, including tax-loss harvesting. For more than 25 years, Vanguard research has helped identify and define key activities through which advisors can add value to client returns, including tax optimization. The research reinforces the critical role of tax-aware investing in long-term portfolio outcomes.

“We’re proud to expand our relationship with Vanguard and build on how we support financial advisors together,” said Dana D’Auria, Co-Chief Investment Officer and Group President of Solutions for Envestnet. “Tax management is no longer a year-end exercise. Advisors increasingly need solutions that help them manage tax implications throughout the year while keeping their portfolios aligned with their clients’ long-term goals. By bringing together Vanguard’s Advisor’s Alpha framework with Envestnet’s platform and tax-aware portfolio management capabilities, we’re helping advisors more clearly demonstrate their value and deliver more personalized, tax-efficient outcomes for clients.”

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“Vanguard’s Advisor’s Alpha framework has long underscored the meaningful value financial advisors can bring to client outcomes,” said Eve Cout, Head of Advisor Solutions, Financial Advisor Services, Vanguard. “Combined with the scale of Envestnet’s wealth management ecosystem, this work helps advisors more confidently adopt model portfolios and tax-efficient strategies — delivering more disciplined, better-informed outcomes for investors.”

Vanguard will also participate in Envestnet’s Fund Strategist Tax Management (FSTM) Advantage program, joining a growing group of asset managers helping to remove cost barriers to tax management services and expand advisor access to tax-aware portfolio management on the Envestnet platform.

Through the FSTM Advantage program, advisors using Fund Strategist Portfolios — including Vanguard Active-Passive model portfolios — can apply ongoing tax management aligned to client-specific tax sensitivity preferences. Rather than treating tax management as a year-end event, the service continuously evaluates the tax impact of portfolio changes throughout the year, seeking to balance tax costs against portfolio alignment with the underlying investment strategy. Participating asset managers help make these capabilities available at no additional cost for eligible portfolios*, expanding access to sophisticated tax management for more advisors and investors.

“Our technology continuously evaluates the tax consequences of portfolio decisions, seeking to balance the cost of taxes with maintaining alignment to the intended investment strategy,” added Ms. D’Auria. “While advisors cannot control markets, they can help improve after-tax outcomes for clients. By helping mitigate unnecessary capital gains exposure and retain more of what investors earn, tax management becomes one of the most powerful and measurable ways advisors can create long-term value.”