Northern Trust Asset Management Delivers Direct Indexing Solution on Envestnet Platform

Key Terms

direct indexing financial

Direct indexing is a way for investors to own the individual stocks that make up an index instead of buying a single pooled fund, allowing customization of holdings, tax management, and cost control. It matters because it lets investors tailor exposure—like removing certain companies or harvesting tax losses—while still tracking broad market performance, similar to building a personalized playlist rather than listening to a pre-set radio station.

quantitative factor tilts technical

Quantitative factor tilts are deliberate adjustments a model-driven portfolio makes to hold more or less of stocks that share measurable traits—such as cheapness, recent price strength, small size, profitability, or steady returns—than a standard benchmark. Like tweaking a recipe to emphasize one ingredient, tilts change a fund’s expected risk and return profile and help investors pursue specific goals (higher return, lower volatility, or diversification) while accepting corresponding trade-offs.

Financial Advisors Relying on Envestnet can now Access Northern Trust Asset Management’s Institutional-Level Solution for Customizing Ultra-High-Net-Worth Portfolios with Tax Management

CHICAGO--(BUSINESS WIRE)-- Northern Trust Asset Management, a leading global investment management firm with $1.4 trillion in assets under management as of September 30, 2025, announced today it will make its institutional-quality, tax-managed direct indexing solution available via Envestnet, a leader in Adaptive WealthTech for financial advisors.

Financial advisors utilizing the Envestnet platform will now have access to Northern Trust Asset Management’s more than 35 years of expertise in customizing tax-aware portfolios for the ultra-high-net-worth market. Northern Trust Asset Management’s direct indexing solution offers a diverse lineup of equity investment strategies, giving advisors the ability to seamlessly blend indices, incorporate quantitative factor tilts, and select exclusions to reflect client values and preferences.

“By offering our direct indexing capabilities on the Envestnet platform, we will empower more financial advisors to personalize portfolios at scale while taking their clients’ taxes into consideration,” said Suzanne Casey and Sunitha Thomas, Co-Heads of the Wealth Client Group, Northern Trust Asset Management. “Tax management is key to effective portfolio management, which is why our innovative direct indexing technology is built to help financial advisors deliver after-tax returns to their clients. The partnership with Envestnet reflects our commitment to helping investors achieve their goals, by using sophisticated strategies and tools to adapt to evolving market conditions.”

“Northern Trust Asset Management shares our dedication to providing financial advisors with the insights and resources they need to meet the evolving, complex needs of ultra-high-net-worth clients,” said Dana D’Auria, Co-CIO and Group President of Envestnet Solutions at Envestnet. “Its institutional-level direct indexing solution gives advisors the power to seamlessly infuse client portfolios with tax-smart approaches which can demonstrate significant value over the long term.”

Northern Trust Asset Management is a top three¹ provider of custom tax-managed investments, with $149 billion assets under management in direct indexing as of September 30, 2025.

This information is general in nature and should not be construed as tax advice. Please consult a tax advisor or professional as to how this information may affect your particular circumstance.

About Northern Trust Asset Management

Northern Trust Asset Management is a global investment manager that helps investors navigate changing market environments in efforts to realize their long-term objectives. Entrusted with $1.4 trillion in assets under management as of September 30, 2025, we understand that investing ultimately serves a greater purpose and believe investors should be compensated for the risks they take — in all market environments and any investment strategy. That’s why we combine robust capital markets research, expert portfolio construction and comprehensive risk management in an effort to craft innovative and efficient solutions that seek to deliver targeted investment outcomes. As engaged contributors to our communities, we consider it a great privilege to serve our investors and our communities with integrity, respect and transparency.

Northern Trust Asset Management is composed of Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Fund Managers (Ireland) Limited, Northern Trust Global Investments Japan, K.K., NT Global Advisors, Inc., 50 South Capital Advisors, LLC, Northern Trust Asset Management Australia Pty Ltd, and investment personnel of The Northern Trust Company of Hong Kong Limited and The Northern Trust Company.

About Northern Trust

Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking services to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 24 U.S. states and Washington, D.C., and across 22 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of September 30, 2025, Northern Trust had assets under custody/administration of US$18.2 trillion, and assets under management of US$1.8 trillion. For more than 135 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit us on northerntrust.com. Follow us on Instagram @northerntrustcompany or Northern Trust on LinkedIn.

Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at https://www.northerntrust.com/terms-and-conditions.

The publisher’s sale of this reprint does not constitute or imply any endorsement or sponsorship of any product, service or organization.

Northern Trust and Envestnet are separate and unaffiliated firms. This material should not be construed as a recommendation or endorsement of any particular product, service, individual or firm.

___________________________________ 1 Direct Indexing ranking based on AUM as of June 30, 2025 from The Cerulli Edge: U.S. Managed Accounts Edition, 3Q2025 published September 2025.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260106986006/en/

Media Contact:

Joanne Zalatoris

+1 (312) 900-3462

Joanne.zalatoris@ntrs.com

Source: Northern Trust Corporation