Unified Managed Accounts Overlay Portfolio Management and Overlay Portfolio Management

Overlay Portfolio Management (OPM) is the core process that drives a Unified Managed Account (UMA). Coordinating the investment recommendations across multiple managers; Incorporating client restrictions or mandates; Trade order management and execution with multiple custodians; Active tax management Effective OPM requires leading edge technology and experienced portfolio managers, resources few independent advisors can effectively muster.

OPM Active Tax Management Taxes matter, creating a drag on overall return. Active tax management services seek to minimize that drag. Cross-manager coordination, wash sale avoidance Tax-sensitive rebalancing Attempting to actively match gains and losses Transition management Tax-sensitive legacy asset transfers and disposition Possible delay of gain recognition until… Long-term gain status realized Subsequent tax year Loss / Gain Harvesting Ongoing, opportunistic harvesting in accordance to specified parameters Mandated loss / gain targets (typically year-end) Integration of external tax events into management of the portfolio Low Cost-Basis and Concentration Stock Protection

How WealthADV Unified Managed Accounts (UMAs) work + Objectives and Risk Tolerances + Restrictions and Preferences + Tax Details and Financial Events Client + Client Reporting & Ongoing Relationship Management + Assign Client to Suitable Composite + Select Mangers to Implement Composites + Manager Research and Due Diligence + Devise Asset Allocation Strategies + Assess Client Risk Profile Advisor WealthADV UMA Separate Accounts Held Away Assets Cash Mutual Funds + Monitor Account for Drift + Rebalance Accounts Mindful of Tax Impact & Restrictions + Trade Order Blocking and Execution + Loss Harvesting + Ad Hoc Requests and Cash Management + Manager Contracts and Payments + Client Billing of UMA Fees + Library of Participating Managers WealthADV + Strategy Model Holdings + Change Rationale + Historical Performance + Manager Marketing Collateral & ADV II Money Manager

WealthADV Overlay Portfolio Management Process, Methodology and Organizational Workflow Discussion Manager Identification and Composite Design Account Opening and Setup Portfolio Transition Management Portfolio Monitoring Portfolio Maintenance

Overlay Portfolio Management Workflow Manager Identification and Composite Design Account Opening and Setup Portfolio Transition Management Portfolio Monitoring Portfolio Maintenance Program Design Client Proposals Model Onboarding Overlap Analysis Composite Design and Validation

Overlay Portfolio Management Workflow Manager Identification and Composite Design Account Opening and Setup Portfolio Transition Management Portfolio Monitoring Portfolio Maintenance Establish Cash In/Out Treatment Define Portfolio Monitoring Rules Define Tax Treatment Establish Transition Plan Build Pre-Trade Compliance Mandates Custodial Selection Select Custodial Pricing Schedule SMA to UMA Account Merge Tax Lot and cost Basis Validation * Component of Active Tax Management option

Overlay Portfolio Management Workflow Manager Identification and Composite Design Account Opening and Setup Portfolio Transition Management Portfolio Monitoring Portfolio Maintenance Identify Security Inheritance Tax Term Low Basis Lot ID Transition Planning * Component of Active Tax Management option

Overlay Portfolio Management Workflow Manager Identification and Composite Design Account Opening and Setup Portfolio Transition Management Portfolio Monitoring Portfolio Maintenance Tracking Error Drift Cash Deposits Liquidation Requests Cash Floor Violations Cash Ceiling Violations Compliance Violation Tax Optimization * Component of Active Tax Management option

Overlay Portfolio Management Workflow Manager Identification and Composite Design Account Opening and Setup Portfolio Transition Management Portfolio Monitoring Portfolio Maintenance Manager Trades Composite Reweightings Manager Hire/Fires Scheduled Rebalancing Ad Hoc Tax Harvesting Fees and Client Billing * Component of Active Tax Management option

Overlay Portfolio Management Workflow Manager Identification and Composite Design Account Opening and Setup Portfolio Transition Management Portfolio Monitoring Portfolio Maintenance Portfolio Administration Portfolio Operations Trading Allocations Lot Level write-downs Manager Lot Tagging Settlement Corporate Action Processing Auditing Manager Review Trade Rotation Validation * Component of Active Tax Management option

Overlay Portfolio Management Workflow Manager Identification and Composite Design Account Opening and Setup Portfolio Transition Management Portfolio Monitoring Portfolio Maintenance Portfolio Administration Portfolio Operations Client Billing Manager Payment Remittance Contract Management Advisor Communication Manager Onboarding Manager ADV , Collateral, Performance Collection and Distribution

Overlay Portfolio Manager Compliance Trading Client Service & Support Operations Overlay Portfolio Management Organization Brokers Custodians FIX Network Due Diligence Providers Model Providers Advisors