1. Unified Managed Accounts Overlay Portfolio Management
and
Overlay Portfolio Management

2. 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.

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

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