Issue link: https://resources.envestnet.com/i/1533175
FOR ONE ON ONE USE WITH A CLIENT'S FINANCIAL ADVISOR © 2024 Envestnet. All rights reserved. 3 What securities typically fund an account with OS? • Cash, Individual Equities, Mutual Funds, ETFs, Individual Bonds When Tax Overlay is selected, can Not -In-Model securities be retained in the account? • Not-In-Model Individual equities maybe retained under certain circumstances including but not limited to fulfilling the account's asset allocation as well as acceptable tracking error. • Not in model mutual funds/ETFs may be retained in eligible managed product sleeves. If there are no eligible managed product sleeves, then the fund/ETFs will be immediately sold and any gain realized. • Retaining or selling individual bonds is at the discretion of the bond manager, if a SMA bond manager is not part of the asset allocation, the bond will be sold and gains/losses will be realized. Are Tax Overlay Accounts required to have a Long Term Capital Gains Budget?(LTCGB) • No, accounts are not required to have a LTCGB. In the absence of a LTCGB, tax overlay will not seek to reduce Long Term Gains until year end during the automated Tax Loss harvest process. • If an account is funded with legacy securities, a Proposed Asset Transition Summary should be requested to determine the appropriate LTCBG achieving reasonable tracking error. Who is the ideal client for Values Overlay Services? • Investors who want to customize their portfolio by applying one or more values-based screens aligned with their personal preferences. What are Values-based Screens? • Envestnet has partnered with external firms to develop a series of screening categories. • Many of these screens have two versions, Best In Class and Strict. In general, the Strict screen will have more companies as part of the screen than the Best In Class screen. How do I elect to use the service? • New accounts - simply check Tax and/or Values Overlay Services during the proposal process to add the service to the account. • Existing account – a Goal modification would be required to add the service to an existing account. Can Tax and Values Overlay be elected for the same account? • Yes, both services can be elected for the same account. █████████████████ Ì200001R2O:Î