Common use of Advisory Programs Clause in Contracts

Advisory Programs. Each Advisory Program listed below is generally governed by a Program Agreement, which may be a document prepared by the co-manager described below. If you request, we will provide you with a copy of the Program Agreement for the specific Advisory Program that you select. In addition, these Program Agreements are available to you at any time in hard copy or electronic form through your Financial Advisor. The following Terms and Conditions describe the specific programs we currently offer. Your selection of investment program(s), their relationships and the specific fees to be paid by you are covered on attached Exhibit A. You may request any certain restrictions or special handling on this form, as well. Each time you add a new account or managed account program you will only have to complete an Exhibit A and return it to your Financial Advisor. Service Provider Co-Managed or sub-advised Programs: ▇▇▇▇▇▇▇ has entered into strategic relationships with certain providers of Managed Account programs to co-manage or sub-advise offerings for ▇▇▇▇▇▇▇ Advisors to offer their clients. Investment Manager Research and Evaluation. Envestnet will from time to time recommend to ▇▇▇▇▇▇▇ particular investment management firms with whom Envestnet has entered into a sub-management agreement (“Sub-Managers”) to act as investment managers with respect to the investment of separately managed securities portfolios of Program Clients participating in the Programs (“Separately Managed Accounts Program”). Envestnet performs due diligence on the Sub-Managers and ensures that Sub-Managers meet certain qualitative and quantitative standards. Such Sub-Managers are categorized as “Approved Sub-Managers.” Envestnet also makes available certain Sub-Managers with respect to whom Envestnet has not performed Due Diligence. Those Sub-Managers are categorized as “Available Sub-Managers” and are generally requested by ▇▇▇▇▇▇▇ or its Clients. The evaluations performed by Envestnet are intended to provide ▇▇▇▇▇▇▇ with sufficient data and/or reports on each Sub-Manager evaluated to allow ▇▇▇▇▇▇▇ to evaluate the competence and experience of each Sub- Manager in accordance with then-current industry standards. However, ▇▇▇▇▇▇▇ is responsible for determining that it has sufficient information about a Sub-Manager to select such Sub-Manager to provide services to ▇▇▇▇▇▇▇ and Clients. The use of an “Approved” designation is for informational purposes only and does not constitute a recommendation by Envestnet of any particular product, manager or service available on the platform, or an assessment that such product, manager or service is suitable for a particular Program Client. Envestnet will monitor and report to ▇▇▇▇▇▇▇ on a quarterly basis the performance of all Sub-Managers that are investing Separate Account Program Assets. For certain Sub-Managers, Envestnet has entered into a licensing agreement with the Sub- Manager, whereby Envestnet performs administrative and/or trading duties pursuant to the direction of the Sub- Manager. In such situation the Sub-Manager is acting in the role of a “Model Provider”. Envestnet Asset Management Programs. ▇▇▇▇▇▇▇ has entered into an agreement with Envestnet Asset Management, Inc. (“Envestnet”), an unaffiliated third-party SEC registered investment adviser, to offer the following programs (which programs?) as co-advisers to clients. In these programs, Envestnet provides on-going investment management services on a discretionary basis that include the ability to adjust asset allocations, add, remove or replace securities in the account, and rebalance the account as it deems necessary. Envestnet also provides advice related to program design and support, including the structure and design of asset allocation portfolios and underlying investment research on Separately Managed Accounts (“SMAs”), which are portfolios of individually owned securities managed by an asset manager and that are often referred to as “sub-managers”, mutual funds, and Exchange-Traded Funds (“ETFs”) that may be available within certain of these programs. National Financial Services, LLC (“NFS”) serves as account custodian for client assets in these programs. Managed Account Solution Program. The Managed Account Solution Program is an asset allocation program which offers both SMA portfolios and mutual funds. Sub-managers are selected by Envestnet from a universe of managers who specialize in a particular investment style. As part of the Managed Account Solution Program, the client may select the PMC Enhanced Portfolio Strategies - Low Volatility or Structured Growth. These are actively traded portfolios designed to provide the characteristics of alternative investments in the form of a portfolio of registered mutual funds and other investment vehicles. The portfolio’s attributes include little or no correlation with public equities and fixed income markets, low volatility relative to equities, a favorable return/risk profile, and the ability to enhance overall portfolio diversification. The portfolio is constructed using a diversified group of funds spanning many different style categories, such as, bear market, world bond, domestic equities and emerging markets. Your advisor will create, maintain, and implement custom portfolio models with Envestnet’s advisor-directed program. This allows your advisor to combine the advantages of outsourcing investment management with the control of self-managing your portfolio. Our Advisor as Portfolio Manager Capabilities allow for: • Modify portfolios within the model • Update drift parameters and add alternate positions to create client-level customization • Harvest gains and losses with account-level trade management Coordinated through the integrated Envestnet Advisor Suite, this complex process is made much easier, more efficient and more effective.