Tax Overlay Campaign

FOR ONE-ON-ONE USE WITH A CLIENT'S FINANCIAL ADVISOR ONLY 3. 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. 4. Envestnet evaluates the risk engine's recommendations for appropriateness and executes the trades in your portfolio. The Bottom Line Our ActivePassive Portfolios allow for advisors to adopt a research-backed investment philosophy in a managed account structure. To ease this transition, advisors now get free tax management that effectively manages capital gains specific to your client's tax situation both during the transition and on an ongoing basis. The information, analysis, and opinions expressed herein are for general and educational purposes only. Nothing contained in this brochure is intended to constitute legal, tax, accounting, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. All investments carry a certain risk, and there is no assurance that an investment will provide positive performance over any period of time. An investor may experience loss of principal. The asset classes and/or investment strategies described may not be suitable for all investors and investors should consult with an investment advisor to determine the appropriate investment vehicle. Investment decisions should always be made based on the investor's specific financial needs and objectives, goals, time horizon, and risk tolerance. Past performance is not indicative of future results. Investments in smaller companies carry greater risk than is customarily associated with larger companies for various reasons such as volatility of earnings and prospects, higher failure rates, and limited markets, product lines or financial resources. Investing overseas involves special risks, including the volatility of currency exchange rates and, in some cases, limited geographic focus, political and economic instability, and relatively illiquid markets. Income (bond) funds are subject to interest rate risk which is the risk that debt securities in a fund's portfolio will decline in value because of increases in market interest rates. Client must carefully determine if the use of tax overlay services is appropriate for their circumstances, risk tolerance, and investment objectives. Tax management services are limited in scope and are not designed to permanently eliminate taxes in the account. Neither Envestnet, Envestnet | PMC™ nor its representatives render tax, accounting or legal advice. Any tax statements contained herein are not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state, or local tax penalties. Taxpayers should always seek advice based on their own particular circumstances from an independent tax advisor. Diversification does not guarantee a profit or guarantee protection against losses. Advisors should always conduct their own research and due diligence on investment products and the product managers prior to offering or making a recommendation to a client. FOR ONE-ON-ONE USE WITH A CLIENT'S FINANCIAL ADVISOR ONLY. © 2024 Envestnet. All rights reserved. Disclosure In addition to ActivePassive ETF, this service is available at no additional fee within our Strategic ETF, Sustainable Portfolio and Sustainable Environmental ActivePassive FSPs. That is, the cost for this tax transition service will be part of the 10 bps management fee that is already charged for these solutions. You will also be able select a desired level of Tax Sensitivity for your portfolio from three options: Very High, High, or Moderate. The same 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. █████████████████ Ì2000015EQÄÎ

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