Northern Trust Brings Tax-Managed Direct Indexing to Envestnet
Northern Trust Asset Management will make its institutional-quality, tax-managed direct indexing solution available through wealthtech platform Envestnet, expanding access to customized, tax-efficient equity strategies for financial advisors. The move is designed to help advisors more easily implement personalized portfolios within existing Envestnet workflows while emphasizing after-tax outcomes for clients.
The firm’s direct indexing offering provides a lineup of equity strategies that allow advisors to blend multiple indices, apply quantitative factor tilts, and introduce exclusions to reflect client values and preferences, such as ESG screens or other bespoke constraints. This structure gives advisors greater control over risk exposures and tax profiles compared with traditional pooled vehicles.
“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 at 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.”
Northern Trust Asset Management reported $149 billion in assets under management in direct indexing as of September 30, 2025.