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4 PORTFOLIO CONSIDERATIONS Now that we have examined what interval funds are and how they operate, let us assess how they can be used in a portfolio context. Because these products do not require investors to qualify to invest in them, interval funds can provide a gateway to the private markets. Interval funds may be diversified across sub-asset classes (like direct lending and asset-backed financing in private credit funds) and/or broad private market asset classes, such as real estate debt and equity. Our capital markets assumptions indicate that diversification from the private market assets held by interval funds may be useful from a risk/return perspective. Estimated Standard Deviation Hypothetical Portfolio Comparison Potential Return Without Private Markets With Private Markets 2% 4% 6% 8% 10% 12% 14% 16% 2% 3% 4% 5% 6% 7% Portfolios in this illustration were created with Envestnet | PMC capital markets assumptions. Real risks and returns will differ from our asset class estimates. Asset classes cannot be invested in directly. This illustration does not consider the impact of taxes, fees, and trading costs. Lower minimum investments also help make interval funds accessible to many investors, not just high-net worth (HNW) families and individuals. Since interval funds do not require the complicated commitments, capital calls, and distributions inherent in drawdown funds, their cash flows are more transparent. In a UMA structure, interval funds can be managed alongside other sleeves, such as exchange traded funds or separately managed accounts, creating an all-encompassing experience. That said, interval funds are not appropriate for clients who may need lump sum liquidity. An investor cannot count on withdrawing all, or even a specific portion, of an interval fund investment during a single liquidity window. If an investor needs access to all of an investment for a single major purchase—like a home—an interval fund's semiliquid structure is unlikely to be an appropriate vehicle for this investment. Performance expectations should be rooted in thorough due diligence of the underlying investment process of the interval fund. For example, interval funds invested in private credit, real estate, and private equity should not be expected to match returns generated by venture capital funds. Investors must understand the investment approach, operational considerations, and fee structures of these funds as they do with any investment in the public markets. However, the focus on the less regulated, more opaque, and complex private market universe presents unique due diligence challenges for any investor. FOR ONE-ON-ONE-USE WITH A CLIENT'S FINANCIAL ADVISOR ONLY © 2025 Envestnet. All rights reserved. 20251218-5072926