Month: April 2021

ESI Illuminations 2.0: Strategist UMA and Overlay Services Go Live Monday (4/19)!

April 13, 2021

Strategist UMA
With Illuminations 2.0, Strategist UMA takes Strategist portfolios one step further as Strategists use separate accounts within their portfolios. The result is a portfolio invested among an appropriate combination of mutual funds, ETFs and individual securities (selected by Separate Account Managers), providing broad diversification that aligns with the investor’s objectives and risk tolerance.

Illuminations 2.0 Strategist UMA Additions: Prospect Profile and Details
The new Strategist UMA portfolios are designed for the high net worth investor with minimums that start at $500K and $750K.

There will be 40 portfolios available managed by two managers: Legg Mason and Envestnet PMC. The portfolios include a variety of strategies, such as Cost Sensitive, Impact/ESG, and ActivePassive.

Overlay Services
An exciting new feature available for Strategist UMA accounts is the addition of tax and impact overlay services.  An overlay service applies filters or additional management to the account.  

  • Tax Overlay* – An optional service for clients wishing to mitigate the impact taxes have on their portfolio, tax overlay services are designed to help reduce tax exposure with the goal of improving after-tax returns.  This is achieved through loss harvesting, gain/loss matching, and deferring short-term gains that can’t be offset.
  • Impact Overlay – Impact overlay is an optional service that allows you to apply multiple screens (20 available) to a portfolio with the goal of creating a portfolio that is aligned with a clients’ personal values.

*Neither ESI nor its representatives offer tax or legal advice. Please encourage your clients to seek tax or legal advice from their appropriate professional advisor.

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An Update from Envestnet: Morningstar Changes

April 13, 2021
Envestnet
  Dear Colleague,

We hope this message finds you well. As you may know, Morningstar recently announced some changes to its US-based investment style methodology. These changes are part of Morningstar’s semi-annual category review to ensure that all categories best represent each investment style’s classifications. Given the extent of these changes, we are getting in touch to be sure you have all the information you need and that you understand how Envestnet is planning to manage the remapping process.

What the Morningstar investment style category changes will mean to you
​​You may see the Morningstar changes impact your business in three ways:New investment categories are being addedExisting investment categories are being renamed and redefinedSome investment categories are being retiredOur timeline for the Morningstar category changes to map to the Envestnet platform
Envestnet is committed to implementing the Morningstar category changes to our internal processes as quickly as we can. We expect to receive new Morningstar data files the week of April 26, 2021, and we will start loading files and shifting to the new mapping then. You can expect to see all the new Morningstar category changes in place on the Envestnet platform by May 5, 2021.

Additional information
Here are two additional documents that might be valuable in helping you understand the changes:Envestnet 2021 Investment Style MethodologyEnvestnet Native Style Box ReferenceAs always, we thank you for your partnership. We are dedicated to working with you to ensure a smooth transition during this process. Please contact your Envestnet Service Team if you have any additional questions.

Best regards.
   
This announcement is not intended as and should not be used to provide investment advice and is not an offer to sell a security or a solicitation of an offer, or a recommendation, to buy a security. Investors should consult with an investment advisor to determine the appropriate investment vehicle. Investment decisions should always be made based on the investor’s specific financial needs and objectives, goals, time horizon, and risk tolerance. The statements contained herein are based upon the opinions of Envestnet and third party sources. Information obtained from third party sources are believed to be reliable but not guaranteed. All opinions and views constitute Envestnet judgments as of the date of writing and are subject to change at any time without notice. Envestnet reserves the right to add to, change, or eliminate any of the investment solutions, services and/or service levels listed herein without prior notice to the advisor or client. Envestnet does not render tax, accounting or legal advice. Past performance is not a guarantee of future results.

FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR DISTRIBUTION TO THE PUBLIC.
                                                
© 2021 Envestnet. All rights reserved. 

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Are you on track to qualify for the ESI Elite Symposium?

April 13, 2021

ESI’s Elite Symposium is our annual educational conference that provides the opportunity to network and share ideas with your peers, hear from world class speakers and meet with ESI’s Strategic & Technology Partners.

If you have never attended the Symposium, it’s always a memorable event. Our last conference in 2019 brought qualifiers to the mountains of Ashville, NC and the historic beauty of the Inn on Biltmore Estate. In 2021, we’ll meet in vibrant New Orleans at The Ritz-Carlton.

While the location for our 2022 Symposium is still being determined, you can count on the usual high standards of speakers and events that the Symposium has traditionally brought to qualifiers. To attend the 2022 Symposium, qualifications are as follows:

Rep Qualifications:         $400,000* of GDC in 2021

Agency Qualifications:   $4,000,000* of GDC in 2021

Qualification Period:       01/01/2021 – 12/31/2021

A special congratulations to our two qualifiers! Steve Simon of Beverly Hills and Jarred Muraco of Long Island have gotten off to a fast start this year and have already qualified for 2022!

* Credits may be adjusted if needed to comply with the Massachusetts Fiduciary Rule.

*All Fixed Indexed Annuity Sales are excluded from this amount.

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eSignature Now Available for Maple Capital Management New Accounts

April 6, 2021

We heard your feedback and have been working with our partners at Maple Capital to improve the new account process to include eSignature acceptance, effective immediately.

This process will look a bit different than other partners you may work with. To complete eSignature with Maple Capital you will have to follow the process outlined below:

  • Contact Maple Capital prior to creation of paperwork to discuss account
    • After this conversation, the Maple Capital portfolio manager will send the advisor a copy of the Investment Policy Statement (IPS)

  • Create an ESI paperwork bundle via Starting Point, like any other piece of business
    • We have added Maple Capital forms to the kits within Starting Point
      • A copy of the IPS will need to be uploaded to the work item
      • Please contact the Maple Capital Client Service department when completing the IAA and Solicitor’s disclosure. The fees MUST be correct, or the agreements will receive a NIGO status from Maple Capital.

  • Upon completion, send forms to your client(s) for eSignature via the normal DocuSign process

  • Upon approval from ESI Home Office, Maple Capital will send the custodial paperwork to the client
    • The approved Maple Capital agreements must be sent by you to Maple Capital in order to show principal approval.

NOTE: ESI does not require copies of the Custodial paperwork to be submitted in the work item and they should not be signed by the client until after ESI Home Office approval of the Maple Capital agreements.

While this new process does require two signing ceremonies by the client, we are excited to take the physical paperwork process and create a time saving electronic experience.

For questions or to discuss this new process, please reach out to Maple Capital at 802-229-2838. For additional information on Starting Point or the eSignature process through DocuSign, please reach out to DocupaceSupport@nationallife.com or 800-344-7437.

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IRS Extends 2020 Tax Filing and Prior Year IRA Contribution Deadline to May 17, 2021

April 6, 2021

Fidelity Notice 21-103

The Internal Revenue Service (IRS) has announced that the federal income tax filing deadline for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. This extension also applies to 2020 IRA contributions. This notice provides operational guidelines for processing 2020 IRA contributions received after April 15, 2021 through May 17, 2021.

Note: This extension does not impact the disaster area tax relief extensions announced by the IRS for residents of Louisiana, Oklahoma and Texas. The tax filing deadline for these states has been extended to June 15, 2021. See Important Notices 21-70 and 21-97 for more information.

IRA Contributions via Check
To ensure that prior year contribution (PYC) checks are in good order and meet the 2020 contribution deadline, the envelope in which the contribution check is received must be postmarked on or before May 17, 2021. Correspondents have the system capability to book PYCs via Mainframe BCOW until May 20, 2021. The deadline for processing PYCs via both Bank Distributed Local Check Deposits and Remote Check Deposit is May 17, 2021. National Financial Services LLC (NFS) may request to see copies of postmarked envelopes for any checks deposited from May 17, 2021 through May 20, 2021 as PYC via Mainframe BCOW.

To prove the check was mailed on or before the contribution deadline, retain the customer’s postmarked envelope or a copy of the postmarked envelope in which the contribution check was received. The envelope must be addressed to NFS or the Home

Office and clearly postmarked on or before May 17, 2021. A USPS metered mail stamp must be dated on or before May 17, 2021. The date on a ‘forever stamp’ is merely the date it was purchased and cannot be used as the postmark date. A prepaid business reply envelope without a postmark does not provide the necessary proof of mail date.

Important: PYC checks received after May 17, 2021, without proof they were mailed on or before May 17, 2021, will not be processed. They will follow the existing workflow for checks received not in good order (NIGO).

If you receive hand delivered contribution checks directly from your customers and forward the checks to NFS for deposit, you will need to maintain evidence that the checks were mailed to NFS by your firm on or before May 17, 2021. For overnight mail, obtain a receipt from the overnight vendor showing delivery information and date sent to NFS. NFS cannot code an IRA contribution check as a PYC after May 17, 2021 unless the envelope is postmarked on or before May 17, 2021.

Checks deposited by your firm after May 20, 2021 and postmarked on or before May 17, 2021 must be booked as current year contributions (CYC). To correct coding and facilitate timely and orderly review, correspondents should enter a Service Request via WealthscapeSM Service Center using Retirement Contributions/Distributions>Contribution Correction:

  • In the Memo Field enter: “CYC to PYC.” Enter the date and amount of deposit in the appropriate fields and in the description field, describe the facts supporting the correction.
  • Attach a copy of the envelope in which the IRA contribution check was received, displaying the postmark on or before May 17, 2021. Correspondents should keep the envelope for their own records.
  • Attach a copy of the IRA contribution check with the appropriate tax year clearly designated in the memo section of the check or other documentation provided by the customer clearly indicating the appropriate tax year.

When properly documented requests are received, NFS will adjust the entry made by your firm from CYC to PYC, which will automatically update the tax records.

IRA Contributions via Remote & Mobile Check Deposit
Checks reviewed and approved by 6:00 p.m. ET on May 17, 2021 can be coded as PYC. Checks reviewed and approvedafter 6:00 ET on May 17, 2021 must be entered as CYC. If the deposit is for a PYC, be sure to write “PYC” or “2020contribution” on the check and enter a Service Request as described above.

IRA Contributions via (EFT)
Contributions made via Periodic Investment Plans (PIP) after January 1, 2021 using Electronic Funds Transfer (EFT) will be coded as CYC. For EFT contributions made between January 1, 2021 and May 17, 2021 that were intended as PYC, please enter a Service Request using Retirement Contributions/Distributions >Contribution Correction. In the description field, enter the contribution date(s) and amount(s) to be changed to a PYC.

For contributions via EFT which are not part of a PIP, the request must be loaded on the Integrated Cashiering Platform (ICP) by 11:59 p.m. ET on May 17, 2021.

IRA Contributions via IBP
2020 IRA contributions via Intra-Bank Payment (IBP) (for bank correspondents only), must be made by 11:59 p.m. ET on May 17, 2021.

IRA Contributions via Bank Wire
2020 IRA contributions via Bank Wire must be received by the May 17, 2021 tax filing deadline. The incoming wire instructions should note that the Bank Wire is for a 2020 contribution. If there are no wire instructions, NFS will process the contribution as a CYC if within the customer’s contribution limit.

IRA Contributions via Journals from NonRetirement Accounts
Cash contributions via a journal transfer from non-retirement accounts to fund PYCs must be loaded in ICP by 11:59 p.m. ET on May 17, 2021. NFS will process manual journal transfer requests received in good order by 11:59 p.m. on May 17, 2021. All requests to fund IRA contributions from non-retirement accounts must be processed from the customer’s core account. For contribution journals which cannot be processed via ICP or BJNL that require NFS support, please submit a Service Request under Retirement Contributions/Distributions>Contribution from a non-retirement account.

Requests to process PYC journal transfers after May 17, 2021 may be accepted with proof the instructions were submitted to the Home Office on or before May 17. Proof can include a customer signed instruction loaded to BPM or Service Center with a system time stamp prior to the deadline. Transfers that qualify will not be back dated but will be processed current day and coded as PYC. The May 17, 2021 contribution deadline applies to all journal requests. The postmarked envelope rule also applies to mailed journal requests.

Online Adjustments
The Brokerage Online Adjustments system (BOLA) should not be used to adjust PYC deposits made after May 17, 2021.These requests should be submitted via a Service Request using Retirement Contributions/Distributions > Contribution Correction.

For CYC to PYC adjustments of deposits posted prior to the tax filing deadline, BOLA may be used. When submitting “Reversed Check Received” and “As of Check Received” adjustments to correct a CYC to a PYC or vice versa, the requestor must enter “ADJ in good order” to the comment field in order for the request to be approved. By entering an adjustment request, the correspondent agrees that:

  • The adjustment is in good order.
  • The adjustment is processed in accordance with established policies and procedures.
  • The correspondent will keep the account owner’s supporting documentation in their records.

NFS reserves the right to and will periodically request backup copies of the supporting documentation for these adjustments. Appropriate documentation may include a copy of the check with the appropriate year, or a letter of instruction from the account owner. If appropriate documentation is not provided, the adjustment will be reversed. It is the responsibility of the correspondent to maintain proof of the client’s intent and to provide it to NFS in a timely manner, generally within 5 business days, upon request.

For more information refer to IR-2021-59 and IR-2021-67.

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Take a Fresh Look at the Marketing and Training Resources Available on the ESI Illuminations Platform

April 6, 2021

Did you know that all of the Illuminations marketing and training resources – both ESI materials and Strategist materials – are available on the ESI Illuminations platform?

To access them, click on the Platform tab.

In the left column, you’ll see the resources organized into categories.

General Resources includes information on topics like fees and available Strategists. This is also where you’ll find Sales Maps and contact info for all the Strategists.

Special programs focuses on topics like Unified Managed Accounts and Directions.

The Training & Reference section includes resources from Envestnet, ESI and the individual Strategists.

ESI’s Illuminations marketing materials are categorized by client and advisors use and are located under the ESI Marketing Materials section.

Strategist Materials includes available marketing materials from each of the Strategists.

Questions or suggestions for additional content? Contact JennaSimanskas@NationalLife.com.

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Important Information from Russell Investments

April 6, 2021

From Russell Investments

As communicated previously, we are making strategic adjustments to the Core Model Strategies and the LifePoints® Funds, Target Portfolio Series to reflect current market conditions, Russell Investments’ market outlook and investors’ objectives.

Now we have some additional information to share with you.

Core Model Strategies allocation changes will be effective on or about April 21, 2021 (or a date determined by your home office).

Russell Investments LifePoints® Funds, Target Portfolio Series allocation changes will be effective April 16, 2021.

Stay up-to-date on the latest changes to our investment solutions by visiting our Product Updates page (login required).

SPECIAL NOTES:

1. If your firm is reliant upon a turnkey asset management program (TAMP), such as Envestnet or Lockwood, we’re working with them to provide the operational assistance needed to implement these changes.

2. Please note that the products listed within this email communication may or may not be available for investment on your firm’s platform(s). Before sharing any client-ready information with your clients, please ensure that the included material is approved by your firm’s compliance department.

Contact us: 1(800)787-7354          Helping Financial Advisors reach their business potential.

THIS MATERIAL IS FOR FINANCIAL PROFESSIONAL USE ONLY AND NOT FOR DISTRIBUTION TO CURRENT OR POTENTIAL INVESTORS.

Fund objectives, risks, charges and expenses should be carefully considered before investing. A summary prospectus, if available, or a prospectus containing this and other important information can be obtained by calling (800) 787-7354 or visiting https://connect.rightprospectus.com
/russellinvestments. Please read a prospectus carefully before investing.

Mutual fund investing involves risk, principal loss is possible.

Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.

Investments that are allocated across multiple types of securities may be exposed to a variety of risks based on the asset classes, investment styles, market sectors, and size of companies preferred by the investment managers. Investors should consider how the combined risks impact their total investment portfolio and understand that different risks can lead to varying financial consequences, including loss of principal. Please see a prospectus for further details.

Strategic asset allocation and diversification do not assure profit or protect against loss in declining markets.

Model Strategies represent target allocation of Russell Investment Company funds; these models are not managed and cannot be invested in directly.

Model Strategies are exposed to the specific risks of the fund directly proportionate to their fund allocation. The funds comprising the strategies and allocations to those funds have changed over time and may change in the future.

The LifePoints® Funds are a series of funds which expose an investor to the risks of the underlying funds proportionate to their allocation. Investment in LifePoints® Funds involves direct expenses of each fund and indirect expenses of the underlying funds, which together can be higher than those incurred when investing directly in an underlying fund.

Russell Investments’ ownership is composed of a majority stake held by funds managed by TA Associates with minority stakes held by funds managed by Reverence Capital Partners and Russell Investments’ management.

Frank Russell Company is the owner of the Russell trademarks contained in this material and all trademark rights related to the Russell trademarks, which the members of the Russell Investments group of companies are permitted to use under license from Frank Russell Company. The members of the Russell Investments group of companies are not affiliated in any manner with Frank Russell Company or any entity operating under the “FTSE RUSSELL” brand.

Copyright © 2021 Russell Investments Group, LLC. All rights reserved. This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. It is delivered on an “as is” basis without warranty.

Russell Investment Company mutual funds and Russell Investment Funds are distributed by Russell Investments Financial Services, LLC, member FINRA, part of Russell Investments.

First used: April 2021. RIFIS 23716 – Generic

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