Tax Overlay Campaign

FOR ONE-ON-ONE USE WITH A CLIENT'S FINANCIAL ADVISOR ONLY Now get tax management at no additional cost! For the first time ever, Envestnet PMC will be offering Fund Strategist Tax Management for all ActivePassive PMC ETF Portfolio accounts in the FSP program at no additional cost. This means that ActivePassive Portfolios will now be available to advisors for no management fee, no Envestnet platform fee, and no tax overlay fee. Platform fees do not include any Firm or Sponsor Fees that may be charged by the home office. Envestnet receives revenue via the ActivePassive ETF fund expenses, but an explicit model management fee will not be charged. Performance results will be reduced by fees including, but not limited to, investment management fees and other costs such as custodial, reporting, evaluation and advisory services. A description of all fees, costs and expenses are found in a financial advisor's Disclosure Brochure. What is ActivePassive? ActivePassive is PMC's research driven investment philosophy that thoughtfully blends active investment management with passive management by looking at the historical performance of managers in different asset classes. By judging active managers' failure to outperform the benchmark within certain asset classes, PMC can couple the right active managers within asset classes holding low active failure rates, with passive managers within the asset classes that have high active failure rates. This is an approach that has been refined over the past 20 years and relies on research on manager performance over the past 40+ years. What do we mean by tax management? Our Fund Strategist Tax Management service will ease the migration from the clients current portfolio to their new ActivePassive FSP model and continuously analyze portfolio changes to manage the tax implications. You will select a desired level of Tax Sensitivity for your portfolio from three options: Very High, High, or Moderate. This selection will influence how significantly your portfolio may deviate from the Fund Strategist Portfolio manager's portfolio. As the manager makes changes, 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 model, versus the risk incurred by deviating from the model year-round, with the goal of delivering better after-tax performance to you. How will the tax management work? 1. During the proposal process, you will select a desired Tax Sensitivity, which will influence initial trading in either an existing or new portfolio. 2. Envestnet inputs those changes, along with other client-specific portfolio information, such as your Tax Sensitivity, and evaluates them using the risk optimization engine. ActivePassive PMC ETF Portfolios 0 bps Management Fees 0 bps ENV Platform Fees 0 bps Tax Overlay Fees █████████████████ Ì2000015EPwÎ

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