Envestnet Case Studies

2 © 2025 ENVESTNET, INC. ALL RIGHTS RESERVED. FOR ADVISOR AND HOME OFFICE USE ONLY. See the Value of Envestnet Fund Strategist Tax Management Service In this example, our client is looking to transition their portfolio to a Fund Strategist Portfolio (FSP) model, but they're happy with the allocation and current portfolio's risk. The transition to the professionally managed FSP, will create an $8,700 tax bill. That's like tacking on an additional 4% fee to this client's $213,000 portfolio. Proposed transition Tax management options Outcome Current portfolio Tracking error .........................5.0% The less-diversified original portfolio's tracking error is too high. High tax sensitivity Tracking error ....................1.3% Taxes (est.) .................... $3,100 Since the client is comfortable with their allocation and wants to follow a professional model, they chose the High Tax Sensitivity option as it balances the transition's tax impact while also providing professional investment management. No management Tracking error ........................ 0.0% Taxes (est.) ......................... $8,700 Very high tax sensitivity Tracking error ........................ 2.6% Taxes (est.) .......................... $1,700 High tax sensitivity Tracking error ......................... 1.3% Taxes (est.) .......................... $3,100 Moderate tax sensitivity Tracking error ........................ 0.5% Taxes (est.) .........................$5,900 Our Fund Strategist Tax Management Service provides different tiers of options based on the level of tracking error and first year tax bill the client is comfortable with. The client wants to diversify their equity holdings and follow a professionally managed 90/10 model. Target portfolio Equity ............... 90.0% Fixed income ....10.0% Current portfolio Equity .................87.5% Fixed income .... 12.5% PMCOverlayServices@envestnet.com envestnet.com/wealth-solutions/tax-overlay Results are hypothetical and will vary from person to person. The success described in the scenario is not guaranteed and does not reflect typical outcomes. Any income or performance claims shown in this situation should not be viewed as a promise of similar results. This hypothetical case study is for informational purposes only, and past performance is not necessarily indicative of future success. 20250926-4852209 █████████████████ Ì20000EHZR+Î

• Cover