Tax Overlay Campaign

For more information, go to investpmc.com. Envestnet | PMC FOR ONE-ON-ONE USE WITH A CLIENT'S FINANCIAL ADVISOR ONLY. 2 Trusted With Over $14 Billion Of Client Assets* Today, Envestnet | PMC automates tax and values overlays for more than $14 billion in client assets at over 100 firms.* By offering these overlay services, we're able to help clients customize portfolios to fit their specific investment goals in an automated, efficient manner. How We Manage Your Capital Gains Managing your capital gains starts when you are making decisions about how to build your portfolio. By choosing to use a Unified Managed Account (UMA), you can combine several different investments, including Separately Managed Accounts (SMAs), mutual funds, and exchange traded funds (ETFs), in a single account. This can provide both you and your advisor with a number of benefits, one being the ability to automate the tax management of all of the UMA's investments. If your UMA has 50% or more allocated to managed products, it qualifies for our Tax Overlay service, which automates the tax management of your portfolio and allows you to customize its tax settings. The Tax Overlay service will attempt to minimize realization of Net Short Capital Gains in your portfolio. You may choose to set a desired limit on the amount of Net Long Term Capital Gains for your portfolio. You may even specify a desired amount of additional losses you'd like Envestnet to harvest for your portfolio. Personalize your settings according to your specific goals and update them at any time. By investing in a managed product, you're hiring an investment manager to provide you with their selection of stocks for a particular strategy. Additionally, as markets move through different economic environments, the manager will make changes to its holdings. The changes made by the manager will require your account to sell some shares to buy others, which could lead to realizing taxable gains. As the manager makes changes, and depending on your firm and client configurations, Envestnet will evaluate the tax cost of executing those changes and may make different trades than the model. The optimization process balances the tax cost of adhering to the manager's trade versus the tracking error incurred by deviating from the manager, with the goal of delivering better after-tax performance. Envestnet | PMC Automates Tax And Values Overlays For More Than $14B in Assets At Over 100 Firms* *Source: Envestnet | PMC. As of September 30, 2023. Over 15 years' experience in tax-efficient investing Patented risk optimization process Ability to manage portfolios to customized client/account-specific mandates Dedicated support team During the proposal process, you and your advisor will work with an Overlay Specialist to analyze your existing holdings against your desired UMA portfolio allocation. This analysis will demonstrate the tradeoff between limiting capital gains realization and accepting higher tracking error. Based on this analysis, you will decide the long-term capital gains budget you wish to set. These settings will govern the initial trading in your portfolio. The product manager or your advisor communicates to Envestnet which actions to take within the portfolio, such as replacing one security with another, rebalancing the portfolio, or raising cash. Envestnet inputs those changes, along with other client-specific portfolio information like your capital gains budgets and evaluates them using a risk optimization engine. The risk engine analyzes the portfolio changes, possible tax implications of the changes, and provides trade recommendations that balance your tax cost with your portfolio's risk, measured by tracking error. Envestnet evaluates the risk engine's recommendations for appropriateness and executes the trades in your portfolio. 1 2 3 4 How It Works 5 █████████████████ Ì2000015IGFÎ

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