SEI Expands Tax Management and Overlay Capabilities

Rhea-AI Summary

SEI (NASDAQ:SEIC) on November 12, 2025 expanded its tax management and overlay capabilities for separately managed accounts (SMA) and unified managed accounts (UMA).

The enhancements add ETF integration, expanded tax-transition analysis, coordinated trading and overlay management to reduce wash sales, an annual capital gains budget feature, automated daily tax-loss harvesting at the tax-lot level, and an Estimated Taxes Saved Report showing year-to-date and since-inception tax savings. SEI says the changes aim to give advisors greater control, transparency, and optionality to improve after-tax outcomes for investors.

Insights

Tax & Wealth Solutions Analyst

SEI broadened tax-overlay capabilities to give advisors more control over transitions, harvesting, and reporting.

Built on nearly two decades of experience, SEI expands tax-management across SMAs and UMAs to include ETF integration, automated daily tax-loss harvesting, coordinated trading to avoid wash sales, and an annual capital gains budget. The offering bundles transition analysis, implementation, portfolio design, and client reporting into a single workflow, which can reduce operational friction during portfolio changes.

Key dependencies and risks include advisor adoption, accuracy of tax-lot and wash-sale automation, and the quality of the integrated reporting. The announcement cites 73% of high-net-worth advisors prioritizing tax minimization, which supports product-market fit but does not guarantee uptake. Results depend on execution quality and compatibility with existing advisor platforms.

Concrete items to watch: uptime and accuracy of the daily tax-lot engine, how ETF transitions are handled tax-wise during implementation, and client-facing metrics in the Estimated Taxes Saved Report. Expect initial integration and early adoption signals over the next 12 months, with measurable after-tax reporting available immediately upon deployment.

ETF Integration, Tax Transition Expansion, and Enhanced Tax Optimization Helps Advisors Strengthen Portfolio Customization and After-Tax Outcomes for Investors

OAKS, Pa., Nov. 12, 2025 /PRNewswire/ -- SEI^® (NASDAQ:SEIC) today announced a significant expansion of its tax management and overlay capabilities for separately managed account (SMA) and unified managed account (UMA) solutions. The enhancements provide advisors with greater control, transparency, and optionality for tax-management customization, in an effort to support both immediate and long-term tax benefits for investors.

Built on the foundation of nearly two decades of tax overlay services, this expansion advances SEI's commitment to tax minimization, which matters most according to high-net-worth advisor practices. In fact, 73% of them consider tax minimization as their top investment objective priority¹.

Designed to help advisors optimize tax outcomes, SEI's Tax Management and Overlay capabilities now feature a more robust process. From tax transition analysis, through implementation and portfolio design, to portfolio management and client-centric reporting, these capabilities are designed to integrate tax considerations through multiple phases of the wealth management process and add value to advisor-client relationships. With the expansion, the integrated approach supports tax optimization by:

• Transitioning existing securities, including both individual stocks and exchange-traded funds (ETFs) with thoughtful tax analysis and potential portfolio inclusion
• Coordinating trading and overlay management, including both single-strategy SMAs, direct indexing, and multi-manager UMAs, to help avoid wash sales and optimize portfolio allocations
• Enabling an annual capital gains budget, designed to intentionally target a maximum for annual gains realization, for strategic planning and tax control
• Automating tax-loss harvesting with daily security and tax-lot level analysis for opportunities to realize capital losses
• Providing investor-centric reporting with the Estimated Taxes Saved Report, which includes both year-to-date and since-inception quantified value through integrated tax management

Erich Holland, Head of Client Experience for SEI's Advisor business, said:

"These enhancements underscore our focus on simplifying the complex and empowering investors—and deepen our belief that tax management is part of our DNA, and not just a feature. We're setting a new standard for how modern portfolios are optimized by empowering advisors and their clients to transition portfolios with greater agility and help achieve materially improved after-tax outcomes.

"Taxes are the biggest drag on investor returns, and for advisors, that means every dollar saved through tax optimization is an opportunity to deepen client relationships, differentiate their approach, and deliver measurable value. By proactively managing tax outcomes, advisors can help clients keep more of what they earn, while streamlining their operations and driving organic growth for their business."

¹Cerulli, "Customized at Scale: A Framework for Next-Generation Advisory Platforms," October 2025.

About SEI^®
SEI (NASDAQ:SEIC) is a leading global provider of financial technology, operations, and asset management services within the financial services industry. SEI tailors its solutions and services to help clients more effectively deploy their capital—whether that's money, time, or talent—so they can better serve their clients and achieve their growth objectives. As of Sept. 30, 2025, SEI manages, advises, or administers approximately $1.8 trillion in assets. For more information, visit seic.com.

Important Information

Separately managed accounts are offered through the Managed Account Solutions program.

Neither SEI nor its affiliates provide tax advice. Please note that (i) any discussion of U.S. tax matters contained in this communication cannot be used by you for the purpose of avoiding tax, penalties, and/or interest which may be imposed by the IRS or any other taxing authority; (ii) this communication was written to support the promotion or marketing of the matters addressed herein; and (iii) you should seek advice based on your particular circumstances from an independent tax advisor. Accordingly, Clients should confer with their personal tax advisors regarding the tax consequences of investing with SEI Investments Management Corporation (SIMC) and engaging in the tax-management techniques described herein (including the described tax loss harvesting strategies) based on their particular circumstances. Clients and their personal tax advisors are responsible for how the transactions conducted in an account are reported to the IRS or any other taxing authority on the Client's personal tax returns. SIMC assumes no responsibility for the tax consequences to any Client of any transaction.

SEI Investments Management Corporation (SIMC) does not represent in any manner that the tax consequences described as part of its tax-management techniques and strategies will be achieved or that any of SIMC's tax-management techniques, or any of its products and/or services, will result in any particular tax consequence. SIMC is a wholly owned subsidiary of SEI Investments Company (SEI). The tax consequences of the tax-management techniques, including those intended to harvest tax losses, and other strategies that SIMC may pursue are complex and uncertain and may be challenged by the IRS. Neither SIMC nor its affiliates provide tax advice.

Company Contact:	Media Contact:
Alicia Rudd	Eric Hazard
SEI	Vested
+1 610-676-3887	+1 214-734-8203
arudd@seic.com	eric@fullyvested.com

 

View original content:https://www.prnewswire.com/news-releases/sei-expands-tax-management-and-overlay-capabilities-302613112.html

SOURCE SEI Investments Company

FAQ

What did SEI (SEIC) announce on November 12, 2025 about tax management?

SEI announced expanded tax management and overlay capabilities for SMA and UMA solutions, including ETF integration, tax-transition analysis, tax-loss harvesting, and an Estimated Taxes Saved Report.

How does SEI's update help advisors avoid wash sales for SEIC clients?

The update coordinates trading and overlay management across SMAs, direct indexing, and multi-manager UMAs to help avoid wash sales and optimize allocations.

What new automated tax features did SEI add for SEIC portfolios?

SEI added automated daily tax-loss harvesting with security- and tax-lot-level analysis and an annual capital gains budget to limit realized gains.

Does SEI provide reporting on tax savings for SEIC-managed accounts?

Yes. SEI introduced an Estimated Taxes Saved Report that shows year-to-date and since-inception quantified tax savings from integrated tax management.

Which account types are affected by SEI's November 12, 2025 enhancements (SEIC)?

The enhancements apply to separately managed accounts (SMA) and unified managed accounts (UMA), including single-strategy SMAs, direct indexing, and multi-manager UMAs.