What You Have to Know
- Commonwealth Monetary Community is rolling out a collection of latest tax-focused planning instruments for its advisors.
- Newly revealed planning options cowl direct indexing, portfolio tax optimization, UMAs and extra.
- CEO Wayne Bloom says the suite of options is designed to assist advisors win again extra time to serve shoppers.
The nationwide registered funding advisor platform Commonwealth Monetary Community has launched a collection of latest instruments geared toward serving to advisors enhance their observe effectivity and meet rising consumer calls for — particularly within the area of tax planning.
Newly revealed planning options cowl direct indexing, portfolio tax optimization and unified managed accounts. The agency has additionally established a brand new “turnkey managed chief know-how officer service,” all anticipated to launch for the complete advisor community after beta testing in 2025.
In an interview with ThinkAdvisor, CEO Wayne Bloom mentioned the collective aim behind the suite of latest options helps Commonwealth’s 2,200 partnering advisors win again extra of their time to give attention to delivering glorious consumer service and rising their practices.
“This launch actually represents an essential step for the Commonwealth platform and our advisor group,” Bloom mentioned. “We’re not holding again in terms of giving them new alternatives to outsource and make the most of all of the capabilities we now have to supply.”
Bloom added that as we speak’s unbiased advisor has grown rather more taken with partnering with RIA platforms and different third events so as to add effectivity and scalability to their course of. That is very true on the funding aspect, he famous, and in terms of companies wanted by extra subtle shoppers looking for assist with tax oversight.
”That why I like to think about us right here at Commonwealth nearly as time retailers,” Bloom mentioned. “If we may give advisors again extra of their time to give attention to successful and serving shoppers, then we’re doing what we got down to do.”
Huge Updates to Portfolio Platform
Commonwealth’s announcement highlights a wide range of updates to its Most popular Portfolio Choose funding administration platform, which now gives greater than 100 mannequin portfolios.
The primary of those is the addition of what Bloom referred to as “customized indexing.” Put merely, Commonwealth will increase its present direct indexing capabilities to supply customized indexing in full integration with the PPS Choose platform — making it far simpler for advisors to supply custom-made, tax-efficient portfolios.
Complementing this new system is a tax transition software that helps advisors work with shoppers to effectively transition low-basis portfolios over time, in keeping with a preset tax price range. As Bloom famous, the software will help an advisor transition a consumer to any of the PPS Choose fashions — or customized indexing — over time.
Additionally coming on-line in 2025, advisors will be capable to elect a tax overlay on any PPS Choose mannequin, through a system that may mechanically conduct tax-loss harvesting with out the advisor needing to request particular trades.
Lastly, Commonwealth is spotlighting a unified managed account construction, via which advisors will be capable to mix a number of PPS Choose fashions and third-party managers in a single account.