Tax Overlay Campaign

FOR ONE ON ONE USE WITH A CLIENT'S FINANCIAL ADVISOR © 2024 Envestnet. All rights reserved. 1 Tax Managing FSP Sleeves in a UMA Envestnet's UMA Tax Overlay Service is a managed account solution providing year-round tax management to clients and offering opportunities to advisors to differentiate their practice and enhance their value proposition. Historically, Envestnet's UMA Tax Overlay Service has focused on tax managing Equity SMA sleeves in a UMA. Envestnet is expanding the service to include tax managing FSP sleeves in a UMA. This enhancement offers greater flexibility when tailoring a UMA to a client's needs. What are the potential benefits of tax managing FSP sleeves within a UMA? • Switching from Rep-as-PM to a managed account is simpler than ever • At account inception, the client's Equity, Mutual Fund, and ETF funding assets may be able to be retained, even if they are not part of the UMA Target Allocation Model, reducing the immediate tax cost to switch to a managed account • On an ongoing basis, the client's holdings may be allowed to deviate from the UMA Target Allocation Model, potentially realizing fewer capital gains on an ongoing basis • The client can indicate a preferred Tax Budget for their account, thus influencing the total tax consequences of their managed account (Important Note: a Tax Budget is not a limit nor a guarantee and may be exceeded, review disclosures to learn more) • Tax management is an ongoing year-round service What are some of the requirements and important points to keep in mind? • The UMA Tax Overlay Service is available within UMA Programs only • Cost basis information is the responsibility of the Client, and must be complete for all holdings prior to inception • There is an additional AUM-based fee for the service • A desired Tax Budget, if provided by the Client, is not a limit nor a guarantee and may be exceeded • Account performance may deviate significantly from the performance of the UMA Target Allocation Model • There is no guarantee that a particular asset will be retained in the client's portfolio, and there is no guarantee as to the timing of buying or selling a particular asset in the client's portfolio • Mutual Funds trade differently and provide a different experience from Equities or ETFs. Clients should review the disclosures describing Mutual Funds in further detail What are some of the considerations when determining the client's UMA Target Allocation Model? • Envestnet's ability to deliver desirable tax experiences is significantly influenced by the client's UMA Target Allocation Tax Managing FSP Sleeves in a UMA FREQUENTLY ASKED QUESTIONS █████████████████ Ì2000015FMdÎ

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