SEI has acquired LifeYield, a Boston-based tax management technology provider.
Through the acquisition, SEI will be able to provide real-time, automated unified managed household capabilities in a bundled overlay solution. The approach is aimed at allowing advisors to look across all account registrations and optimize clients' after-tax returns.
LifeYield's capabilities provide three core benefits, according to the announcement. These include improving efficiency for advisors and wealth managers, improving outcomes for investors and enabling tax-efficient investing at scale.
By integrating LifeYield’s technology, SEI’s unified managed account capabilities will include expanded capabilities across asset location, tax-loss harvesting, multi-account household portfolio management, tax transition services and withdrawal optimization.
SEI intends to expand these capabilities with a new front-end solution for on- and off-platform distribution to help financial advisors, institutions and asset managers better manage and implement household accounts.
J. Womack, chief product officer at SEI, said in a statement that investors are increasingly prioritizing tax management and the flexibility of a personalized approach to portfolio management. He added that both firms “fervently believe that tax optimization is a philosophy, not a feature.”
LifeYield CEO Mark Hoffman observed that SEI’s position in the industry can significantly elevate his firm’s ability to make its technology available to a wider audience.
“Joining the SEI team is a next step in building upon our existing strategic partnership,” Hoffman said. “We’re excited to deliver a UMH solution that considers the entirety of a household, so the tax benefits extend to everyone who is part of a client's financial picture.”
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