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5 FOR HOME OFFICE AND ADVISOR USE ONLY. NOT FOR DISTRIBUTION TO THE PUBLIC. Comprehensive Functionality Can Limit Flexibility While all-in-one portfolio management tools can often handle varied billing scenarios, these scenarios tend to be designed to work at the account, and sometimes household, levels. At other levels such as sleeve, manager, and investment strategy, these tools fall short. While these tools can be convenient solutions for practice management functions such as executing trades, accessing client information and portfolio analysis, they are unlikely to be able to offer the same level of billing functionality as a specialized solution. Living in the Specifics of Managed Accounts All-in-one tools may be unable to provide the required granularity at the billing level. This includes aspects touched on previously, including handling separate manager sleeves, asset exclusions, and billing at the household and individual account level. Additionally, feeds that are outside of client control (i.e. custodian) are often left out of calculations with less sophisticated billing solutions. This can lead to workarounds such as manual processes in Excel, adding significant time to the process and increasing the chance of errors Multiple Third-Party Managers In addition to the challenges already mentioned, billing that applies across a variety of parties and classes can be challenging for a non-specialized tool because of the many parameters and varied computational methods that are typically involved in UMA billing. These tools can also experience difficulty calculating fees during account onboarding or termination. These accounts lifecycle events, and others such as asset flows and manager changes, require specific logic and processing that is often beyond the competency and expertise of non-specialized billing software. An inability to handle complex scenarios such as these can lead to a range of errors, the most common of which is missing or inaccurate fee adjustments related to intraperiod lifecycle events. Special handling workarounds required due to a lack of billing automation may run afoul of regulatory requirements, which can lead to fines. Regulatory penalties can also include other measures that require changes to a firm's billing practices, among other potential strictures. Additionally, the reputational damage from publicity of regulatory penalties can lead to a loss of business that can far exceed any fines a firm might be charged in overall financial impact. Creates "special handling" for complex accounts involving manual fee calculations outside of the automated billing solution, thereby introducing financial and reputational risk. Difficulties All-in-One Tools Can Encounter in UMA Billing While a comprehensive practice management software platform can offer a robust set of broad functionalities, these solutions may encounter difficulties when it comes to UMA billing. Such challenges generally stem from the wide variety of variables and use cases present in billing for different households and individual accounts. █████████████████ Ì20000F906MÎ

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