Envestnet Asset Management A Leader in Wealth Management Solutions

1. Envestnet Asset ManagementA Leader in Wealth Management Solutions

2. Our Mission

3. E Leading provider of unified wealth management solutions Over $35 Billion in Assets under Management and Administration Over 200,000 Investor Accounts Core Capabilities Investment Management Technology Operations and Administration Advisory Services Broad Range of Investment Solutions Separate Accounts (Access to over 150 Asset Managers) Mutual Fund Portfolios Alternative Investments ETFs Outside Strategists Advisor Managed Portfolios Envestnet Company Snapshot

8. A Range of Investment Solutions Suitable For Any Investor

9. FM&R Investment Process

10. FM&R Asset Allocation

11. Research Process At-A-Glance

12. Benefits of FM&R Manager Selection

13. A Well-Rounded Platform

15. A proposal demonstrates advice. It hauls around a heavy burden. A brand new car does not need to be spoken for, an investment solution crafted to the clients needs does. We typically trust products. Our new hat will keep us warm. But we are less trusting of services. The proposal must help the process come to life. As author Harry Beckwirth says�the proposal must help make the invisible, visible. A proposal demonstrates advice. It hauls around a heavy burden. A brand new car does not need to be spoken for, an investment solution crafted to the clients needs does. We typically trust products. Our new hat will keep us warm. But we are less trusting of services. The proposal must help the process come to life. As author Harry Beckwirth says�the proposal must help make the invisible, visible.

43. Here are some important differences between the two investment solutions. Probably the most critical difference between investing in managed accounts vs. mutual funds is the fact that with managed accounts, you own the individual securities in your account. What this means is that your managed account can be customized to achieve better diversification in your overall portfolio. Unlike a mutual fund where you own fund shares and not the individual securities, with a managed account, you are afforded the flexibility to request that some holdings be sold to produce capital gains or losses as well as have the ability to control the purchase of securities that you may or may not want to own.Here are some important differences between the two investment solutions. Probably the most critical difference between investing in managed accounts vs. mutual funds is the fact that with managed accounts, you own the individual securities in your account. What this means is that your managed account can be customized to achieve better diversification in your overall portfolio. Unlike a mutual fund where you own fund shares and not the individual securities, with a managed account, you are afforded the flexibility to request that some holdings be sold to produce capital gains or losses as well as have the ability to control the purchase of securities that you may or may not want to own.

44. Think of managed accounts in terms of baseball � you are the team owner, your financial advisor is the coach, and the investment managers are the players. As the team owner, you hold all the cards. You seek a financial advisor (a coach) that can succeed in making your investment goals come to fruition. It is the role of �the coach� to selectively identify investment managers (or �the players�) that have the expertise to effectively manage the securities in your portfolio while �the coach� continually works with you as you make other allocations and investment decisions. Think of managed accounts in terms of baseball � you are the team owner, your financial advisor is the coach, and the investment managers are the players. As the team owner, you hold all the cards. You seek a financial advisor (a coach) that can succeed in making your investment goals come to fruition. It is the role of �the coach� to selectively identify investment managers (or �the players�) that have the expertise to effectively manage the securities in your portfolio while �the coach� continually works with you as you make other allocations and investment decisions.

45. We follow a four step process in constructing your portfolio. It is a disciplined approach that has been used by leading institutions and the wealthiest families in the nation. It is a process that is continuous. It does not end when we invest the portfolio. While it is critical that this plan matches your financial needs and expectations, the important work that we will do will be to continually ensure that the plan is in synch with your goals and that you feel comfortable with the strategy.We follow a four step process in constructing your portfolio. It is a disciplined approach that has been used by leading institutions and the wealthiest families in the nation. It is a process that is continuous. It does not end when we invest the portfolio. While it is critical that this plan matches your financial needs and expectations, the important work that we will do will be to continually ensure that the plan is in synch with your goals and that you feel comfortable with the strategy.

46. The first step of the process involves sitting down with you to identify your unique goals -- we assess your current portfolio, agree on your objectives, get a sense of the tax needs for your portfolio, determine your liquidity needs, and factor any sentiments you have about stocks, bonds, investing overall. The first step of the process involves sitting down with you to identify your unique goals -- we assess your current portfolio, agree on your objectives, get a sense of the tax needs for your portfolio, determine your liquidity needs, and factor any sentiments you have about stocks, bonds, investing overall.

47. The asset allocation we create is done in two steps: first we create a Strategic Asset Allocation. From a high level we evaluate your goals and then consider how you feel about risk and if there are other constraints. We use these as parameters to establish the appropriate mix among asset classes--such as stock, bonds and cash. Second, we drill into this allocation and work to optimize the long-term return of the portfolio while keeping the risk level constant. We do this by digging into the asset class allocations and splitting them in sub asset classes--such as Large Cap Stocks, International Equities or intermediate Municipal bonds. This lays out the detailed blueprint for your investment plan. The asset allocation we create is done in two steps: first we create a Strategic Asset Allocation. From a high level we evaluate your goals and then consider how you feel about risk and if there are other constraints. We use these as parameters to establish the appropriate mix among asset classes--such as stock, bonds and cash. Second, we drill into this allocation and work to optimize the long-term return of the portfolio while keeping the risk level constant. We do this by digging into the asset class allocations and splitting them in sub asset classes--such as Large Cap Stocks, International Equities or intermediate Municipal bonds. This lays out the detailed blueprint for your investment plan.

49. So, as we analyzed your profile and got a deeper understanding of your investment objectives, we placed you along side a reference asset allocation. These are benchmark allocations that loosely fit around your needs. Generally two asset classes, that have historically delivered these results with this much volatility. � The next step is the important part. We take the generic allocation and make it personal. How can we give your portfolio the potential for greater long-term return while holding to the benchmark level of risk? We do this by diversifying into additional asset classes and micro allocation into sub-asset classes. This is where the portfolio takes on your characteristics. So, as we analyzed your profile and got a deeper understanding of your investment objectives, we placed you along side a reference asset allocation. These are benchmark allocations that loosely fit around your needs. Generally two asset classes, that have historically delivered these results with this much volatility. � The next step is the important part. We take the generic allocation and make it personal. How can we give your portfolio the potential for greater long-term return while holding to the benchmark level of risk? We do this by diversifying into additional asset classes and micro allocation into sub-asset classes. This is where the portfolio takes on your characteristics.

50. Ongoing due diligence of the investment managers who are managing your assets ensures consistency and relevance, thus building investor confidence. Portfolios are rebalanced as necessary to follow the set asset allocation plan. Reviews are conducted throughout the year to confirm your goals, examine portfolio progress, and make adjustments based on market conditions if necessary. This ongoing process is critical. Ongoing due diligence of the investment managers who are managing your assets ensures consistency and relevance, thus building investor confidence. Portfolios are rebalanced as necessary to follow the set asset allocation plan. Reviews are conducted throughout the year to confirm your goals, examine portfolio progress, and make adjustments based on market conditions if necessary. This ongoing process is critical.

55. When presenting your transition to fees to your clients, focus on how recent trends in the financial services industry are making it possible for individual investors to access a level of investment expertise that historically, has only been available to the largest institutions and wealthiest individuals. In addition, explain how advances in technology are providing the scale necessary for financial advisors to deliver this service to their clients. Mention that you waited until now to make the move because you needed time to evaluate the model and be sure that the technology and infrastructure was secure before introducing the option to your clients. When presenting your transition to fees to your clients, focus on how recent trends in the financial services industry are making it possible for individual investors to access a level of investment expertise that historically, has only been available to the largest institutions and wealthiest individuals. In addition, explain how advances in technology are providing the scale necessary for financial advisors to deliver this service to their clients. Mention that you waited until now to make the move because you needed time to evaluate the model and be sure that the technology and infrastructure was secure before introducing the option to your clients.

58. Managed Accounts aren�t for everyone, but they may be a perfect fit for you. Managed accounts are generally appropriate for investors with greater than $300K to invest. These investors generally require a more disciplined process, the ability to tax manage their portfolio, and require continuous portfolio management -- which are addressed by the structure of managed accounts. This structure can also be the most adequate investment solution for life situations that result in you inheriting a large sum of money where you may not feel comfortable managing assets on your own. Lastly, managed accounts can be ideal for those that are interested in rolling over retirement assets that have not seen a change in the way contributions have been allocated since joining the plan initially � consequently possibly losing $$ that could have accumulated through managed accounts. Basically, with a managed account, your financial advisor and an investment manager can lift the fiduciary responsibility of effectively managing assets off of your shoulders.Managed Accounts aren�t for everyone, but they may be a perfect fit for you. Managed accounts are generally appropriate for investors with greater than $300K to invest. These investors generally require a more disciplined process, the ability to tax manage their portfolio, and require continuous portfolio management -- which are addressed by the structure of managed accounts. This structure can also be the most adequate investment solution for life situations that result in you inheriting a large sum of money where you may not feel comfortable managing assets on your own. Lastly, managed accounts can be ideal for those that are interested in rolling over retirement assets that have not seen a change in the way contributions have been allocated since joining the plan initially � consequently possibly losing $$ that could have accumulated through managed accounts. Basically, with a managed account, your financial advisor and an investment manager can lift the fiduciary responsibility of effectively managing assets off of your shoulders.

59. Managed Accounts aren�t for everyone, but they may be a perfect fit for you. Managed accounts are generally appropriate for investors with greater than $300K to invest. These investors generally require a more disciplined process, the ability to tax manage their portfolio, and require continuous portfolio management -- which are addressed by the structure of managed accounts. This structure can also be the most adequate investment solution for life situations that result in you inheriting a large sum of money where you may not feel comfortable managing assets on your own. Lastly, managed accounts can be ideal for those that are interested in rolling over retirement assets that have not seen a change in the way contributions have been allocated since joining the plan initially � consequently possibly losing $$ that could have accumulated through managed accounts. Basically, with a managed account, your financial advisor and an investment manager can lift the fiduciary responsibility of effectively managing assets off of your shoulders.Managed Accounts aren�t for everyone, but they may be a perfect fit for you. Managed accounts are generally appropriate for investors with greater than $300K to invest. These investors generally require a more disciplined process, the ability to tax manage their portfolio, and require continuous portfolio management -- which are addressed by the structure of managed accounts. This structure can also be the most adequate investment solution for life situations that result in you inheriting a large sum of money where you may not feel comfortable managing assets on your own. Lastly, managed accounts can be ideal for those that are interested in rolling over retirement assets that have not seen a change in the way contributions have been allocated since joining the plan initially � consequently possibly losing $$ that could have accumulated through managed accounts. Basically, with a managed account, your financial advisor and an investment manager can lift the fiduciary responsibility of effectively managing assets off of your shoulders.

60. Managed Accounts aren�t for everyone, but they may be a perfect fit for you. Managed accounts are generally appropriate for investors with greater than $300K to invest. These investors generally require a more disciplined process, the ability to tax manage their portfolio, and require continuous portfolio management -- which are addressed by the structure of managed accounts. This structure can also be the most adequate investment solution for life situations that result in you inheriting a large sum of money where you may not feel comfortable managing assets on your own. Lastly, managed accounts can be ideal for those that are interested in rolling over retirement assets that have not seen a change in the way contributions have been allocated since joining the plan initially � consequently possibly losing $$ that could have accumulated through managed accounts. Basically, with a managed account, your financial advisor and an investment manager can lift the fiduciary responsibility of effectively managing assets off of your shoulders.Managed Accounts aren�t for everyone, but they may be a perfect fit for you. Managed accounts are generally appropriate for investors with greater than $300K to invest. These investors generally require a more disciplined process, the ability to tax manage their portfolio, and require continuous portfolio management -- which are addressed by the structure of managed accounts. This structure can also be the most adequate investment solution for life situations that result in you inheriting a large sum of money where you may not feel comfortable managing assets on your own. Lastly, managed accounts can be ideal for those that are interested in rolling over retirement assets that have not seen a change in the way contributions have been allocated since joining the plan initially � consequently possibly losing $$ that could have accumulated through managed accounts. Basically, with a managed account, your financial advisor and an investment manager can lift the fiduciary responsibility of effectively managing assets off of your shoulders.