SEI Investments' enhanced managed-accounts program, which was spiffed up to optimize tax management and provide for better customization and coordination across portfolios, is up and running after about nine months of development.

The Integrated Managed Accounts Program uses a tax overlay strategy to boost the tax-efficiency of the portfolios. Bruce Higgins, a product manager at SEI, says the equity-investment floor for accounts in the program is about $250,000 and that many projected users will have accounts that fall in the $600,000-700,000 range.

SEI expects the program to attract both new and current SEI clients primarily through its primary distribution channel, which is comprised of some 3,500 independent financial advisors.

SEI worked with Parametric Portfolio Associates to simulate the effects of a hypothetical tax overlay portfolio. SEI claims that the portfolio outperformed non tax-managed separate accounts by up to 65 basis points per year on an after-tax basis. The simulations also found that the strategy outperformed traditional tax-efficient separate accounts by up to 35 basis points a year on an after-tax basis, according to SEI.  

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