Envestnet Whitepapers

8 Help clients keep more: Managing the impact of taxes in a personalized way Getting results: Resources to help you minimize the tax drain Whether you're already helping clients with tax planning techniques or looking to expand your service offering, we believe in the power of tax management, and we are committed to helping advisors uncover opportunities and add more value. With our investment vehicles and sophisticated technology solutions, you can broaden your value proposition and add more scale to your practice: • Envestnet offers after-tax reporting capabilities, a Unified Managed Account (UMA) program, and services to automate your tax management processes. • The Envestnet | PMC Tax Overlay Service and Fund Strategist Tax Management Service are always-on technologies that automate tax management based on your clients' unique needs. The Envestnet platform also offers access to tax-efficient strategies, like municipal bonds and tax-efficient ETFs. • BlackRock's Tax Evaluator tool helps monitor potential and historical capital gain distributions across more than 7,000 funds as well as identify tax-loss harvesting opportunities in portfolios. Using the tool can help advisors minimize tax drag for clients' portfolios while also saving time. In addition, BlackRock offers tax- efficient ETFs and tax-aware model portfolios. • BlackRock's Tax Foundations online Continuing Education course highlights why managing taxes matters and how you can adapt your investment processes to maximize after-tax returns. With your prospects With the tools you already use With your clients Anticipate potential Help get the most for your clients with Tax Evaluator What does Tax Evaluator do? Differentiate your proposals by showing prospects how you can help them save money in taxes. Upload their current portfolio and quickly compare and quantify the potential tax savings they might expect with your portfolio management approach. Identify potential tax-saving opportunities to help clients keep more of what they earn each year. Reinforce your value by showing clients the potential dollar impact of your tax efficient investment strategy. How do I use Tax Evaluator? It's not what you make, it's what you keep. For Financial Professional Use Only – Not For Public Distribution tax impacts See capital gains estimates and identify potential tax loss harvest opportunities across 7000+ funds. The tool helps facilitate your strategic portfolio decisions to help minimize tax impacts for your clients. Just upload your portfolio to see estimated capital gains distributions and fund performance information, as well as identify funds with negative price returns. Tax Evaluator works where you work. Access Tax Evaluator directly from the Envestnet platform. Look for the BlackRock Launch Pad to get started with Tax Evaluator and other Advisor Center tools. USRRMH0922U/S-2448163-1/2 Fund Strategist Tax Management Service Year-round tax-efficient investing For more information, go to investpmc.com. Envestnet | PMC FOR ONE-ON-ONE USE WITH A CLIENT'S FINANCIAL ADVISOR ONLY. 1 The Fund Strategist Tax Management Service is designed to help reduce tax exposure with the goal of improving after-tax returns. It's Not What You Make, It's What You Keep That Matters Taxes you pay on gains from investments, or capital gains taxes, could be your portfolio's largest expense. Particularly for some investors, the taxes they pay on these gains could approach 50 percent or higher. While you may only file taxes once a year, managing your capital gains tax liability should be continuous and ongoing. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 $2,124,000 No tax drag $1,762,000 1% tax drag $1,459,000 2% tax drag 20-year hypothetical impact of taxes, assumed annual return: 7.5% YEARS Ending wealth difference in 20 years: $665,000 Initial investment: $500,000 Hypothetical Growth Of $500,000 Over 20 Years At 7.5% Per Year This is a hypothetical illustration and not meant to represent an actual investment strategy. Tax drag is the reduction of potential investment returns due to taxes. Taxes may be due at some point in the future and tax rates may be different when they are. Investing involves risk and you may incur a profit or loss regardless of strategy selected. USRRMH1022U/S-2525051-1/4 MKTGM1123U/S-3208539-8/12

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