Investment Program Options

A Unified Managed Account (UMA) is a single investment account that can hold multiple investment strategies and asset types. UMAs can offer a consolidated approach for clients who prefer to manage various investment styles within one account structure. Through Envestnet, clients may access diversified, tax-aware, multi-asset portfolios and a range of professionally managed investment strategies. Availability of specific managers, products, and features may vary based on platform and account requirements.

Potential Features of a UMA Account May Include:

• Open Architecture: Access to a broad menu of investment options, including mutual funds, ETFs, and separately managed account (SMA) strategies. The number and types of available investments may change over time.
• Professional Investment Management: Clients may select strategies managed by experienced institutional or third-party asset managers. Access to certain managers may otherwise require higher account minimums when approached directly.
• Consolidated Account Structure: Holding multiple investment strategies within a single custodial account can help reduce the need for multiple account statements and tax documents.
• Combined and Sleeve-Level Reporting: Performance reports may show results for the overall account as well as for individual portfolio components. Performance will vary based on market conditions, allocation decisions, and strategy selection.

Important Considerations

• All investments involve risk, including the possible loss of principal.
• Diversification does not guarantee profit or protect against loss in declining markets.
• Investment strategies may not be suitable for all investors.
• Fees and expenses apply and may impact returns.
• Past performance does not guarantee future results.

SMA – Separately Managed Accounts

A Separately Managed Account (SMA) provides investors with direct ownership of the securities managed by a professional asset manager, rather than holding shares of a pooled vehicle. SMAs can allow for personalized investment considerations. Minimum investment requirements generally start around $100,000, though they vary by manager and strategy.

Potential Features of an SMA Account May Include:

• Professional Investment Management: Access to investment strategies run by institutional asset managers. Certain managers may have higher minimum requirements outside a managed account program.
• Customization Opportunities: In some cases, managers may adjust investment guidelines to reflect personal preferences, such as avoiding specific securities or aligning with existing holdings. The level of customization varies by manager and strategy.
• Tax Management Considerations: Because securities are held directly, SMAs may allow for tax-loss harvesting or recognition of gains/losses in coordination with a client’s tax professional. Tax outcomes depend on individual circumstances, trading activity, and prevailing tax laws, which are subject to change. Clients should consult a tax professional regarding their personal situation.

Important Considerations

• All investments involve risk, including the possible loss of principal.
• Diversification does not guarantee profit or protect against loss in declining markets.
• Investment strategies may not be suitable for all investors.
• Fees and expenses apply and may impact returns.
• Past performance does not guarantee future results.

Our in-house, custom-tailored portfolios are designed to provide flexibility in adapting to changing market conditions. Portfolios are built with a focus on diversification, periodic rebalancing, and a disciplined investment process that may include cost-efficient ETFs and individual securities. Clients also have the option to hold investments outside of the recommended model holdings. With an advisor-directed portfolio, clients maintain direct ownership of the underlying securities, which can offer additional flexibility and potential tax management opportunities compared to some other investment structures.

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