FOR ONE ON ONE USE WITH A CLIENT'S FINANCIAL ADVISOR
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• Tax management flexibility is maximized when the client includes large allocations to index based
Equity SMA products in their UMA Target Allocation Model
• Tax management flexibility will decline as other product types are added. See the graphic and table
in this document for more information, or contact a member of the Overlay Services team
• As a specific example, an account with a UMA Target Allocation of 100% index based Equity SMA
products will have greater tax management flexibility than one allocated 100% to FSP products
Product Type Effectiveness of Tax Overlay
Typical Number of Model
Holdings
Index-based Equity SMA Very High Very High (100+)
Actively-managed Equity SMA High High (30-60)
Strategic, Diversified FSP Moderate Moderate (10-20)
Style focused FSP Low Low (5-10)
Tactical FSP Very Low Very Low (1-10)
Individual MF/ETF, Bond Sleeves, Advisor
Sleeves, etc
None N/A
Tax Management Flexibility of Sleeve Types
Index-based Equity SMA
Actively-managed Equity SMA
Strategic, Diversified FSP
Style focused FSP
Tactical FSP
These Products are not Tax Manageable:
Bond Sleeves, Advisor Sleeves,
Individual Mutual Fund/ETF Sleeves
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