Today’s financial landscape consists of an ever-evolving and growing spectrum of investment options and resources. When investors are challenged to understand the implications that managing wealth on their own can mean, we feel it is our responsibility to underscore the importance of good advice to an individual’s financial health and wellness.

The Essential AdvisorTM is a program and handbook designed to arm advisors with the tools and resources they need to help their clients navigate investment decisions through every stage of their lives. At Envestnet, we believe good financial advice is essential to people reaching their dreams. Advisors help people make tough decisions. Advisors change lives. We are proud to empower the Essential Advisor and the financial institutions that work tirelessly each and every day to help investors reach their goals

10 Things Essential Advisors Do…

1 Clearly identify their expertise and work with investors whose needs are closely aligned

2 Put the investor’s goals first and foremost

3 Help investors cut through the noise

4 Work to understand each client’s personal circumstances, values, investing style, tax situation and goals

5 Develop and carefully monitor a personal plan for each client, and make timely portfolio adjustments to meet changing circumstances and needs

6 Receive the first call when a client is faced with a life transition, responding with true care and concern

7 Help the investor understand fees and expenses—and the value provided for those dollars

8 Tailor communication, education and the overall client experience to meet the unique needs, style and concerns of each client

9 Communicate clearly, truthfully and consistently

10 Effectively utilize technology to maximize the time spent with clients

Envestnet At A Glance1

• Founded in 1999

• IPO July 2010 (NYSE: ENV)

• Empowers more than 59,000 advisors to achieve higher standards in portfolio and practice management

• More than 6 million investor accounts2

• Supports over $1.1 trillion of assets2

• Over 3,200 employees in 16 offices across the globe

1 Data as of September 30, 20172 Totals include accounts/assets under management, administration, and licensing arrangements

Empowering the Essential Advisor

Order your copy of “The Essential Advisor, Building Value in the Investor-Advisor Relationship,” on Amazon.com. This handbook is designed for advisors looking to navigate the changing face of financial services.

The Return on AdviceTM

An ongoing debate among investment advisors and their clients centers on value: creating it, preserving it and perpetuating it. Advisors are tasked with delivering worth to their clients, and clients need to understand what they can expect for the dollars they spend. Over the past three years at Envestnet, we have spent significant time and resources researching, defining, and quantifying the areas where we believe an advisor provides value to an end consumer. We call this research Capital Sigma: The Return on Advice. This term is used to represent the sum total of advisor-created value. Our research shows advisors, when they successfully implement the five core areas of value, can deliver excess value of up to 300 bps—or 3 percent per year—for their clients.

1. Financial Planning and Coaching>50 bps value added

A deep dive into understanding who the client is and what he/she wants to accomplish; serves as the roadmap for achieving client goals, ranging from short-term income needs and extending to estate planning and philanthropy

2. Asset Allocation28 bps value added

Aligning exposure to a diversified range of investments that are tailored to an individual’s goals and risk tolerance

3. Investment Selection>82-85 bps value added

Process to determine which specific investments will be used to create a custom portfolio for a client

4. Systematic Rebalancing44 bps value added

Realigning the weightings of the portfolio to maintain the original desired level of asset allocation; can help enhance returns and reduce risk

5. Tax Management100 bps value added

Buy-and-hold and tax-loss harvesting approaches to tax optimization

For more information on the Essential Advisor, please visit envestnet.com/essentialadvisor

The information, analysis, and opinions expressed herein are for general and educational purposes only. Nothing contained herein is intended to constitute legal, tax, accounting, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. All investments carry a certain risk, and there is no assurance that an investment will provide positive performance over any period of time. The investment strategies described may not be suitable for all investors and investors should consult with an investment advisor to determine the appropriate investment vehicle. An investor may experience loss of principal. Investment decisions should always be made based on the investor’s specific financial needs and objectives, goals, time horizon and risk tolerance. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. All opinions and views constitute our judgments as of the date of publication and are subject to change at any time without notice.

FOR INVESTMENT PROFESSIONAL USE ONLY. NOT INTENDED FOR DISTRIBUTION TO THE GENERAL PUBLIC.

©2018 Envestnet Asset Management, Inc. All Rights Reserved. ENV-SS-EA-0118 SR#884437

Figure 4.1: The Pilars of Advisor-Created Value

FinancialPlanning

AssetAllocation

InvestmentSelection

SystematicRebalancing

TaxManagement

Figure 4.1: The Pilars of Advisor-Created Value

FinancialPlanning

AssetAllocation

InvestmentSelection

SystematicRebalancing

TaxManagement

Figure 4.1: The Pilars of Advisor-Created Value

FinancialPlanning

AssetAllocation

InvestmentSelection

SystematicRebalancing

TaxManagement

Figure 4.1: The Pilars of Advisor-Created Value

FinancialPlanning

AssetAllocation

InvestmentSelection

SystematicRebalancing

TaxManagement

Figure 4.1: The Pilars of Advisor-Created Value

FinancialPlanning

AssetAllocation

InvestmentSelection

SystematicRebalancing

TaxManagement

More Essential Advisor Resources Coming Soon

• An enhanced Envestnet Institute experience

• A series of webinars and podcasts

• Support of PBS programming on benefits of financial advice