PHILADELPHIA, PA — Janney Montgomery Scott has introduced a tax-overlay management system for its unified managed account platform, expanding automated tax-management capabilities across a broader segment of client portfolios as wealth managers compete to differentiate investment offerings and improve after-tax returns.
The firm stated the technology integrates tax-aware portfolio management directly into its advisory platform, allowing financial advisors to automate functions such as tax-loss harvesting, gain deferral and tax-sensitive trading without relying on third-party software.
The launch broadens access to portfolio tax-management tools that have traditionally been concentrated among ultra-high-net-worth clients. By embedding those capabilities into its existing unified managed account platform, Janney aims to incorporate tax considerations throughout portfolio construction and ongoing management while reducing manual administrative work for advisors.
The platform performs daily monitoring for tax-loss harvesting opportunities, executes tax-smart security substitutions designed to maintain market exposure, and enables advisors to establish customized tax and gain budgets based on individual client circumstances. The system is integrated into Janney’s existing advisor workflow.
Unlike many competing tax-management platforms, Janney developed and tested the technology internally, allowing the firm to control future enhancements and service delivery rather than relying on outside vendors.
“Helping clients manage taxes has always been an important part of our investment approach,” John Yackel, executive vice president and chief wealth solutions officer, said. He added that automating routine tax-management functions allows advisors to spend more time working with clients while incorporating tax considerations throughout the investment process.
Eric Hahn, Janney’s director of tax overlay management, said the platform enables advisors to apply tax-aware portfolio management across investment approaches including direct indexing and actively managed strategies.
“We believe tax considerations should be integrated throughout both portfolio construction and ongoing management,” Hahn said. “Our advisors have more versatility. They can now add tax efficiency to diversified strategies such as direct indexing and active management.”
The introduction of the platform reflects continued investment by wealth management firms in advisor technology as firms seek to improve portfolio personalization, increase advisor productivity and strengthen client retention through integrated planning tools.
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