® is an interactive web-based investment tool developed by O’Shaughnessy Asset Management, L.L.C. (“OSAM”) that permits an investment professional (generally a registered investment advisor or a sophisticated investor) to select a desired investment strategy for the professional’s client. At all times, the investment professional, and not OSAM, is responsible for determining the initial and ongoing suitability of any investment strategy for the investment professional’s underlying client. The professional’s client shall not rely on OSAM for any such initial or subsequent review or determination. Rather, to the contrary, at all times the professional shall remain exclusively responsible for same. See below and at the end of this .
: OSAM has relied, and shall continue to rely, on the investment professional’s knowledge and experience to understand the inherent limitations of the performance presentation, including those pertaining to back-tested hypothetical performance, if and where applicable. All performance presentations, including hypothetical performance, are the direct result of the investment professional’s request, independent of OSAM. Depending upon the investment professional’s direction and selection, hypothetical presentations can include both OSAM and non-OSAM Models and/or strategies. The below discussion as to the material limitations of back-tested hypotheticals apply to both OSAM and non-OSAM Models and/or strategies.
: CANVAS content is intended for the investment professional only not to be shared with an underlying client. OSAM assumes that no hypothetical performance-related content will be provided directly to the professional’s client without the accompanying consultation and explanation of the professional and if and where applicable, additional disclosures given, and acknowledgements received by the end investor. The content is intended to assist the professional in evaluating the appropriate investment strategy for the professional’s client.
: OSAM has devised various investment models (the “Models”) for CANVAS, the objectives of each are described herein. The investment professional is not obligated to consider or utilize any of the Models. As indicated above, at all times, the investment professional, and not OSAM, is responsible for determining the initial and ongoing suitability of any Model for the investment professional’s underlying client. Model performance reflects the reinvestment of dividends and other account earnings and are presented both net of the maximum OSAM’s investment management fee for the selected strategy and gross of an OSAM investment management fee. : As indicated at Item 5 of its written disclosure Brochure, OSAM’s CANVAS management fee ranges from 0.20% to 1.15%. The average percentage management fee for all CANVAS strategies is 0.18%. The percentage OSAM management fee shall depend upon the type of strategy and the corresponding amount of assets invested in the strategy; generally, the greater the amount of assets, the lower the percentage management fee. : The performance also do not reflect deduction of transaction and/or custodial fees (to the extent applicable), the incurrence of which would further decrease the performance. For example, if reviewing a strategy with a ten-year return of 10.0% each year, the effect of a 0.10% transaction/custodial fee would reduce the reflected cumulative returns from 10.0% to 9.9% on a 1 year basis, 33.1% to 32.7% on a 3 year basis, 61.1% to 60.3% on a 5 year basis and 159.4% to 156.8% on a 10 year basis respectively. : Transaction/custodial fees will differ depending upon the account broker-dealer/custodian utilized. While some broker-dealers/custodians do not charge transaction fees for individual equity (including ETF) transactions, others do. Some custodians charge fixed fees for custody and execution services. Choice of custodian is determined by the investment professional and his/her/its client. Higher fees will adversely impact account performance.
OSAM does not maintain actual historical performance results for the Models. In order to help assist the investment professional in determining whether a Model is appropriate for the professional’s client, OSAM has provided performance for the Model. OSAM, with minor deviations that it does not consider to be material*, currently uses the Models to manage actual client portfolios (see below). The performance reflects the current Model holdings, which are subject to ongoing change.
: The Performance is subject to material limitations. . During any specific point in time or time-period, the Models, as currently comprised, performed better or worse, with more or less volatility, than corresponding recognized comparative indices, benchmarks or blends thereof. Benchmark returns reflect a blended return stream of the equity benchmark, the AGG Fixed Income ETF, and the MUB National Muni Bond ETF. The AGG Fixed Income ETF has an expense ratio of 0.04%.The MUB National Muni Bond ETF has an expense ratio of 0.07%.These expense ratios will diminish the potential return of the blended benchmark when compared to licensed benchmark return streams (i.e., S&P, FTSE Russell, MSCI, Bloomberg, etc.). The blend percentage of the benchmark is based on the account’s fixed income and Muni bond allocations. The blend only applies to time periods where the account has had exposure to these allocations.
Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the Models), will be profitable, equal any historical index or blended index performance level(s), or prove successful. Historical index results do not reflect the deduction of transaction and custodial charges, or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing indicated historical performance results. The Russell 3000 is a market capitalization-weighted index of 3000 widely held large, mid, and small cap stocks. Russell chooses the member companies for the Russell 3000 based on market size and liquidity. The MSCI All Country World Index is a market capitalization weighted index designed to provide a broad measure of equity-market performance throughout the world. The MSCI is maintained by Morgan Stanley Capital International and is comprised of stocks from 23 developed countries and 24 emerging markets. The Barclays Capital Aggregate Bond Index is a market capitalization-weighted index, meaning the securities in the index are weighted according to the market size of each bond type. Most U.S. traded investment grade bonds are represented. Municipal bonds and Treasury Inflation-Protected Securities are excluded, due to tax treatment issues. The index includes Treasury securities, Government agency bonds, Mortgage-backed bonds, corporate bonds, and a small amount of foreign bonds traded in U.S. The historical performance results for the Russell 3000, MSCI and Barclays are provided exclusively for comparison purposes only, to provide general comparative information to help assist in determining whether a Model or other type strategy (relative to the reflected indices) is appropriate for his/her investment objective and risk tolerance. : (1) Performance does not reflect the impact of client-incurred taxes; (2) Neither Model or the selected strategy holdings correspond directly to any such comparative index; and (3) comparative indices may be more or less volatile than the Model or selected strategy.
: Performance reflects hypothetical back-tested results that were achieved by means of the retroactive application of a back-tested portfolio and, as such, the corresponding results have inherent limitations, including: (a) the performance results do not reflect the results of actual trading using investor assets, but were achieved by means of the retroactive application of the Model or strategy (as currently comprised), aspects of which may have been designed with the benefit of hindsight; (b) back tested performance may not reflect the impact that any material market or economic factors might have had on OSAM’s (or the investment professional’s) investment decisions for the Model or the strategy; and, correspondingly; (c) had OSAM used the Model to manage actual client assets (or had the investment professional used the selected strategy to manage actual client assets) during the corresponding time periods, actual performance results could have been materially different for various reasons including variances in the investment management fee incurred, transaction dates, rebalancing dates (increases account turnover), market fluctuation, tax considerations (including tax-loss harvesting-increases account turnover), and the date on which a client engaged OSAM’s investment management services.
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CANVAS is an interactive web-based investment tool developed by O’Shaughnessy Asset Management, L.L.C. (“OSAM”) that permits an investment professional (generally a registered investment advisor or a sophisticated investor) to select a desired investment strategy (the “Strategy”) for the professional’s client. At all times, the investment professional, and not OSAM, is responsible maintaining the initial and ongoing relationship with the underlying client and rendering individualized investment advice to the client. In addition, the investment professional and not OSAM, is exclusively responsible for:
: To the extent that the investment professional seeks for CANVAS to provide hypothetical back-tested performance, material limitations apply-.
: As indicated above, OSAM, with minor deviations that it does not consider to be material*, currently use the to manage actual client portfolios (i.e., the live Models). The deviations may include, if and where applicable:
: The implementation of OSAM strategies utilize a sampling of the underlying individual Strategy positions, and, as the result thereof, the underlying securities’ weighting could unintentionally deviate +/- the Strategy allocation target OSAM calculates the CANVAS fees based on the mix of strategies that are utilized at the establishment of the account. Therefore, the sampling approach can cause deviations between the CANVAS strategy allocation establishment (and its corresponding fee) and the implementation of that CANVAS strategy.
: involves the incorporation of considerations into the investment due diligence process. ESG investing incorporates a set of criteria/factors used in evaluating potential investments: (i.e., considers how a company safeguards the environment); (i.e., the manner in which a company manages relationships with its employees, customers, and the communities in which it operates); and (i.e., company management considerations). The number of companies that meet an acceptable ESG mandate can be limited when compared to those that do not and could underperform broad market indices. Investors must accept these limitations, including potential for underperformance. Correspondingly, the number of ESG mutual funds and exchange-traded funds are limited when compared to those that do not maintain such a mandate. As with any type of investment (including any investment and/or investment strategies recommended and/or undertaken by OSAM), there can be no assurance that investment in ESG securities or funds will be profitable or prove successful. OSAM generally relies on the assessments undertaken by the unaffiliated mutual fund, exchange traded fund or separate account manager to determine that the funds’ or portfolios’ underlying company securities meet a socially responsible mandate.
: When requested by the investment professional, OSAM will use best efforts to work within Onboarding Budgets, Annual Tax Budgets, and Tracking Error Budgets. However, market and/or specific stock price fluctuations can occur quickly and can correspondingly adversely affect our ability to manage to specified budgets. Additionally, changes to tax budgets, cash flows in and out of an account, mandatory corporate actions, and funding with securities can also impact preciseness. The investment professional must accept this risk. In addition:
: The models are constructed using passive fixed income ETFs. The models attempt to target varying levels of duration and credit exposure relative to the Barclays Aggregate Index. The expense ratios of the underlying ETF’s are born by the investor and are separate and apart from CANVAS related fees.
Access to Insurance Overlay: Access to Insurance Overlay: A CANVAS client (upon consultation with the client’s designated investment professional, not OSAM) may determine to add insurance overlay. Access to insurance overlay is provided by FIDx, a service owned and operated by a third party, which Canvas/OSAM does not manage nor monitor. As a result of a Canvas client choosing to add Insurance Overlay, their data is made available to FIDx and the insurance carrier. The third party service(s) may be subject to different terms of use and privacy policies, over which Canvas/OSAM has no control. FT FinTech Holdings, LLC, an affiliate of OSAM has a minor financial interest in Fiduciary Exchange, LLC (“FIDx”), a third-party provider to our platform. This affiliation may result in financial benefits to OSAM and/or the Canvas Platform. This disclosure is only intended to inform you of a potential conflict of interest and in no way affects pricing, terms of use or your rights in using the Canvas Platform.
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The professional, to the fullest extent permitted under applicable law, agrees to release, defend, indemnify and hold OSAM (including its officers, directors, members, owners, employees, agents, and affiliates) harmless from any and all adverse consequences, financial or otherwise, of any type or nature arising from or attributable to the professional’s access to, and use of, CANVAS, including, but not limited to, any claims for alleged or actual client losses or damages of any kind or nature whatsoever (including without limitation, the reimbursement of reasonable attorney’s fees, costs and expenses incurred by OSAM relating to investigating or defending any such claims and/or demands), except to the extent that actual losses are the direct result of an act or omission by OSAM that constitutes willful misfeasance, bad faith or gross negligence as adjudged by a court of final jurisdiction.
, without limitation, OSAM shall not be liable for Losses resulting from or in any way arising out of (i) any action of the investor or its previous advisers or other agents, (ii) force majeure or other events beyond the control of OSAM, including without limitation any failure, default or delay in performance resulting from computer or other electronic or mechanical equipment failure, unauthorized access, strikes, failure of common carrier or utility systems, severe weather or breakdown in communications not reasonably within the control of OSAM, inaccuracy or incompleteness of any third-party data, or other causes commonly known as “acts of God,” or (iii) general market conditions. Under no circumstances shall OSAM be liable for consequential, special, incidental or indirect damages, punitive damages, or lost profits or reputational harm. Additionally, to the extent applicable, the responsibility solely rests on the “master user” of CANVAS at each independent firm, and NOT OSAM, to close out any associated users who may terminate at any time.
Please Note: Projection/Assumption Limitations. To the extent that any portion of the content reflects assumptions and/or projections, no such content should be construed or relied upon as an absolute probability that such an assumption or projection will prove correct or projected result will occur. To the contrary, a different result (positive or negative) can, and most likely will, occur. Materially different results could occur at any specific point in time or over any specific time period. The purpose of the projections is to provide a guideline to help determine which scenario best meets current and/or anticipated financial situations and/or objectives.
Please Note: Limitations: (Tracking Error): Where applicable, the accuracy of the Tracking Error is co-dependent upon corresponding client-designated constraints. Depending upon nature and extent of the constraints, the results may not correspond to the tracking error.
Please Note: Please Note: Related Party Fees. OSAM is wholly owned by Franklin Resources, Inc., d/b/a Franklin Templeton. CANVAS can include funds and/or managers on its platform that are affiliated with Franklin Templeton, from which Franklin Templeton will derive compensation. However, in such situations, OSAM will endeavor to exclude from its advisory fee those assets that are allocated to such affiliated funds and/or managers.
: Registrant has a fiduciary duty to provide services consistent with the client’s best interest. Registrant will review client portfolios on an ongoing basis to determine if any changes are necessary based upon various factors, including, but not limited to, investment performance, market conditions, fund manager tenure, style drift, account additions/withdrawals, and/or a change in the client’s investment objective/situation. Based upon these factors, there may be extended periods of time when Registrant determines that changes to a client’s portfolio are unnecessary. Clients shall continue to pay advisory fees during periods of portfolio inactivity.
: In the event that the actual performance history of a fund is limited, CANVAS, when it believes it can reasonably do so, shall employ a comparable benchmark as a proxy for the remainder of the reflected performance period. However, no such proxy can duplicate actual fund performance, and such proxy performance is subject to potential material dispersion (positive or negative) will occur. Please be guided accordingly.
Please Note: Limitations (Acting upon Directions). There can be no assurance, nor should there be any expectation, that OSAM shall act on any direction, instruction and/or notice on the day it is received.
Options Strategies: A CANVAS client (upon consultation with the client’s designated investment professional, not OSAM) may determine to allocate client assets to an options strategy managed by the Canvas Managed Options Strategies team (fka as FMOST, which effective December 31, 2025, the Canvas Managed Options Strategies Program will be offered under the O’Shaughnessy Asset Management, LLC. Previously, the strategies were offered through Franklin Managed Option Strategies, LLC (FMOST), an SEC-registered investment adviser and former 100% wholly owned subsidiary of FT as well), including Risk Managed Equity Option Overlay strategies and Index Call Selling Overlay strategies, utilizing options on indexes or individual equities. These strategies are designed to provide investors with the opportunity to earn income from, and manage the risks of, the underlying portfolio’s equity positions through the use of options. The specific description of each strategy, including the corresponding risks, shall be fully disclosed on the CANVAS platform. Please Note: There can be no guarantee that an options strategy will achieve its objective or prove successful. To the contrary, different types of investments and/or investment strategies involve varying degrees of risk and volatility, and at any specific point in time, or over any specific time-period, any investment or investment strategy can and will suffer losses, at times substantial losses. Please also note: The Investment Professional is exclusively responsible for providing all risk-related disclosures and counsel to the underlying client, including disclosures relative to the prospective use of margin and leverage.
Long/Short Equity Strategy: On a limited basis, a CANVAS client (upon consultation with the client’s designated investment professional, not OSAM) can determine to allocate client assets to a long/short equity strategy (the “L/S Strategy”) whereby both long and short positions will be maintained within the same portfolio. Long-short equity is an investment strategy that seeks to take a long position in underpriced stocks while selling short, overpriced shares. Please Note: There can be no assurance that the L/S Strategy will prove successful.
Please Also Note: Use of Margin: These Strategies will involve the use of margin. Margin allows investors to borrow money to buy securities and/or for other non-investment borrowing purposes. The broker/custodian charges the investor interest for the right to borrow money and uses the securities as collateral. By using borrowed funds, the customer is employing leverage that will magnify both account gains and losses. Please Lastly Note: The use of margin can cause significant adverse financial consequences in the event of a market correction. Additionally, the past performance of any other accounts or funds managed in accordance with our methods is not any assurance of future investment results. We do not guarantee the future performance of an account or fund, or any specific level of performance, the success of any investment decision or strategy that we may use, or the success of our overall management.
Short Selling Risk: A short sale is where an Account borrows securities from a lender and sells them in the open market. The Account must repurchase the securities at a later date in order to return them to the lender. In the interim, the proceeds from the short sale are deposited with the lender and the Account pays interest to the lender on the borrowed securities. If the value of the securities declines between the time of the initial short sale and the time it repurchases and returns the securities, the Account makes a profit for the difference (less any interest paid to the lender). If the price of the borrowed securities rises, however, a loss results. There are risks associated with short selling, namely, that the borrowed securities will rise in value or not decline enough to cover the borrowing costs. Any loss on short positions may or may not be offset by investing short sale proceeds in other investments. In addition, the Account may experience difficulties in repurchasing the borrowed securities if a liquid market for the securities does not exist. The lender from whom the securities have been borrowed may also become bankrupt, causing the borrowing Account to lose the collateral it deposited with the lender.
Additional Options and Derivatives Risk: Risks related to option strategies include volatility risk, counterparty risk, credit risk, interest rate risk, market risk, liquidity risk and leverage risk. Although a client might benefit from the use of option strategies, unanticipated changes in interest rates or securities prices could result in an inferior overall performance for the accounts than if they had not used such investments. Options are not suitable for all clients. Specifically:
Volatility risk: With respect to options, the market price is affected by the market’s expectation of future volatility during the term of the option. An option’s market price may increase or decrease, unrelated to a change in the price of the underlying asset, as a result of this market expectation.
Counterparty risk: The buyer or seller of an option has credit exposure to the respective seller or buyer of that option (the counterparty). Franklin MOST intends to only buy and sell exchange traded options. The counterparty to all U.S. exchange traded options is the Options Clearing Corporation (“OCC”). The OCC, based in Chicago, is the world's largest equity derivatives clearing organization. Because OCC is the counterparty the risk is minimal.
Credit risk: The price of an option is based upon, among other things, the price of the underlying asset. As a result, the buyer or seller of an option has indirect exposure to the credit of the underlying asset, as changes in the underlying credit, real or perceived, may affect the price of that underlying asset.
Interest rate risk: Prevailing market interest rates may affect the price of an exchange traded option.
Market risk: Options’ prices are affected by a variety of market factors including, but not limited to, asset prices, interest rates, volatility, etc.
Liquidity risk: Franklin MOST option strategies are generally dependent on the existence of a liquid option’s market, allowing for Franklin MOST to buy and sell options in accordance with their strategy. In the event a liquid market does not exist, Franklin MOST and its strategies may not perform as intended and accounts may be subject to unanticipated loss.
Leverage risk: Options are subject to leverage. Specifically, the seller of a call option receives a fixed upfront premium in exchange for the sale of the call but is exposed to unlimited loss. In the Franklin MOST strategies described herein, it is expected that the Affiliate Manager equity portfolio will be highly correlated to the underlying index of call options sold and that call option potential losses will be substantially offset by unrealized gains in the equity portfolio. The offset is subject to any Basis Risk (as described below) that may exist. Market movements or events could impact the strategy and can result in unforeseen losses. Franklin-MOST makes no representations regarding its ability to predict such movements. The risk of the absence of a liquid secondary market related to any investment or strategy exists and such an absence of liquidity can result in significant loss. Clients may be forced to liquidate collateral assets to raise cash to settle derivative positions. Derivatives are subject to greater potential fluctuations in value than investment in the underlying securities. Purchasing and selling derivatives are highly specialized activities and entail greater than ordinary investment risk. Market volatility will impact the results of certain option strategies. There is a risk of loss associated with the early exercise of an option, which could result in the underlying security being called away prior to expiration. In addition, there is a risk that an underlying security may have losses greater than gains in the value of the options position. There is no guarantee that an option will expire or be exercised at an optimal time considering price movements of the underlying security.
Call Selling Risks: In a call sale based upon an index (a “Reference Security”), the seller receives an upfront premium in exchange for the obligation to pay the buyer the cash value of the excess, if any, of the underlying index price above a specified price (option strike price) generally at a specified time (option expiration). The maximum loss is unlimited. The maximum potential gain when selling a call option is the premium received at the time of sale. As a result, the protection to the Reference Security offered by call selling is limited to the amount of the premium received. A client selling a call option maintains full downside exposure to the Reference Security, if they own that Reference Security (less any call premium received). Selling a call option has an unlimited risk of loss and
Put or Put Spread Buying Risks
Put Options: In an index put sale, the seller receives an upfront premium in exchange for the obligation to pay the buyer the cash value of the underlying index (the “Reference Security”) price below a specified price (option strike price) generally at a specified time (option expiration). No payment is required if the underlying index price is at or above the option strike price at the relevant expiry or exercise time. The maximum loss is limited to the difference between the strike price and the premium received. In an index put purchase, the buyer pays an upfront premium in exchange for the right to receive from the seller the cash value of the underlying index price below a specified price (option strike price) generally at a specified time (option expiration). No payment is received if the underlying index price is at or above the option strike price at the relevant expiry or exercise time. The maximum loss is limited to the upfront premium paid. In the case where the put holder does not own the Reference Security, the put holder will be subject to Basis Risk. Basis Risk means that the performance of the asset or assets the buyer owns may not move in the same direction or have a similar magnitude of movement as the Reference Security. The situation may exist where the put holder’s asset or assets depreciate and simultaneously the Reference Security appreciates resulting in both a realized or unrealized loss on the put holder’s asset or assets AND a loss on the put purchased.
Put Spread Purchases: In an index put spread purchase, the buyer of the put with the higher strike price pays an upfront premium in exchange for the right to receive from the seller the cash value of the underlying index (also a Reference Security) price below a specified price (option strike price) generally at a specified time (option expiration) and simultaneously gives the buyer of the put with the lower strike price the same rights at the lower strike price. No payment is required if the underlying index price is at or above the option strike price at the relevant expiry or exercise time. The economic value to the buyer of a put spread is limited to the difference in strike prices, less the premium paid for the put spread. The maximum loss is limited to the upfront net premium paid. The put or put spread holder will be subject to Basis Risk. Basis Risk means that the performance of the asset or assets the seller owns may not move in the same direction or have a similar magnitude of movement as the Reference Security. The situation may exist where the put or put spread holder’s asset or assets depreciate and simultaneously the Reference Security appreciates resulting in both a realized or unrealized loss on the put or put spread holder’s asset or assets AND a loss on the put or put spread purchased. Put or put spread buying may significantly limit, indirectly, the potential appreciation of the put spread holder’s portfolio if the put spread holder does not own the reference security.
Tax Risk: Selling call options or buying put options or put-spreads, when combined with other holdings of the client may be characterized as a “straddle” as defined in Section 1092(c)(4)(B) of the Internal Revenue Code, as amended (the “Code”) and the Treasury regulations thereunder. Further, the straddle rules may apply to assets owned by the Client that are not part of the call selling or put or put-spread buying program and are not held in the same account or with the same custodian. Straddles may have significant negative tax impacts on the Client including, but not limited to:
Unless otherwise disclosed to the Client by Franklin MOST, Franklin MOST will use its best efforts to avoid executing transactions that may be characterized as a straddle but makes no guarantee it will be effective in avoiding such characterization.
Performance Risk: There is no guarantee that an option strategy will achieve its goals or that it will outperform other implementations of option strategies. Further, the risk exists that even during periods that the Reference Security depreciates, a call selling strategy or a put or put-spread buying strategy may result in a loss. An option strategy may be negatively affected by events beyond the control of Franklin MOST, such as, but not limited to, macroeconomic events, company or sector earning or news events, merger and acquisition activity, interest rates, volatility of the underlying, political events and market or regulatory actions. As options have fixed terms, there exists the risk that the expected performance of an option strategy may not be achieved because the Reference Security either appreciated or depreciated at a time after the expiration of any specific option. Franklin MOST makes no predictions or assurances as to the efficacy of a specific option strategy over a specific period of time.
Please Note: Model Provider Strategy: A CANVAS Client, in conjunction with the services and advice provided by the client’s Investment Professional (and not OSAM), can engage an unaffiliated Model Provider to create and deliver to OSAM a model portfolio(s) (each, a “Model Portfolio”), which OSAM, per the client’s direction, shall utilize to provide investment management services for the Client’s CANVAS account (subject to deviation and/or modification at OSAM’s discretion). The Investment Professional shall retain the initial and ongoing Client suitability determination for the Model Portfolio. Please Also Note: OSAM shall not determine, nor supervise, the Model securities, certain of which securities could be thinly traded stocks that have low trading volume and liquidity, making it more difficult to buy or sell quickly without affecting the price. Awareness of these potential factors is the exclusive responsibility of the Investment Professional. Please Lastly Note: Receipt of Administrative and Marketing Support Fees-Conflict of Interest. At times, the services of unaffiliated Investment Managers and/or Model Providers are available on the CANVAS platform. If and when applicable, such managers/model providers provide OSAM with an annual fixed administrative and marketing fee (i.e., currently expected to be $75,000, but subject to change). The receipt of the annual fee presents a conflict of interest (i.e., the receipt of the fee provides an economic incentive to include and/or retain these managers/model providers on the CANVAS platform). Managers/model providers affiliated with OSAM’s parent entity (Franklin Templeton), do not pay such an annual fee. No CANVAS user is obligated to utilize the services of any affiliated or unaffiliated investment manager/model provider.
Tax Loss Harvesting/Surrogate Index: It is the Investment Professional’s exclusive responsibility to designate a surrogate index to be purchased as the result of a tax loss harvesting transaction. For example: the sale of S&P 500 at a loss and subsequent purchase of the surrogate index Russell 1000.
: Provide the investment professional with the ability to link accounts. The linked accounts are expressly dependent upon data entered. CANVAS does not verify the accuracy of the data. Wash sales can occur. Please be guided accordingly.
: Underlying fund positions are as of the last publicly available fund data, which data could be months old and no longer accurately reflect current fund holdings or allocations. Please be guided accordingly.
: The results are expressly dependent upon data entered. CANVAS does not verify the accuracy of the data. Please be guided accordingly. Please Also Note: After-tax returns are impacted by realized gains/losses and income received via dividends or interest income. Tax rates are based on advisor inputs into the Canvas system. If no tax rates are available, we default to the max short-term federal tax rate (37%), max long-term federal tax rate (20%), and apply the Affordable Care Act surcharge of 3.8%.”
: Due to tax-related restrictions, there may be extended periods of time when there is little to no account trading activity. CANVAS’ fee remains payable during such periods of portfolio inactivity Please be guided accordingly.
Where applicable and used in investment offering: S&P 500® (a registered trademark of S&P® Global or its affiliates, an affiliate and third-party licensor of S&P®), S&P MidCap 400® (also known as the S&P 400® index, a registered trademark of S&P® Global or its affiliates, an affiliate and third-party licensor of S&P®), S&P SmallCap 600® (also known as the S&P 600® index, a registered trademark of S&P® Global or its affiliates, an affiliate and third-party licensor of S&P®), S&P Composite 1500® (also known as the S&P 1500® index, a registered trademark of S&P® Global or its affiliates, an affiliate and third-party licensor of S&P®), S&P® Global BMI, S&P® ADR, S&P®/TSX® Composite (S&P® a registered trademark of S&P® Global or its affiliates, an affiliate and third-party licensor of S&P®, and TSX® a registered trademark of TSX®, Inc., a third-party licensor of S&P®) are products of S&P® Dow Jones® Indices LLC or its affiliates (“SPDJI”) and have been licensed for use by Franklin Templeton, of which OSAM is a wholly owned subsidiary. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P®”); Dow Jones® is a registered trademark of Dow Jones® Trademark Holdings LLC (“Dow Jones®”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Franklin Templeton. S&P 500®, S&P MidCap 400® (also known as the S&P 400® index), S&P SmallCap 600® (also known as the S&P 600® index), S&P Composite 1500® (also known as the S&P 1500® index), S&P® Global BMI, S&P® ADR, S&P®/TSX® Composite are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones®, S&P®, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the previously disclosed Indices above.
Additionally, please note, where applicable, funds and/or strategies have been developed solely by OSAM or FRI. The funds and/or strategies are not in any way connected to or sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). FTSE Russell is a trading name of certain of the LSE Group companies. All rights in the “FTSE Russell Index” (the “Index”) vest in the relevant LSE Group company which owns the Index. “FTSE®” “Russell®”, “FTSE Russell®”, “FTSE4Good®”, “ICB®”, and/or “The Yield Book®,” are a trademark(s) of the relevant LSE Group company and are used by any other LSE Group company under license. The Index is calculated by or on behalf of FTSE International Limited, FTSE Fixed Income, LLC, and/or its affiliate, agent, or partner. The LSE Group does not accept any liability whatsoever to any person arising out of (a) the use of, reliance on, or any error in the Index or (b) investment in or operation of the funds and/or strategies. The LSE Group makes no claim, prediction, warranty, or representation either as to the results to be obtained from the funds and/or strategies or the suitability of the Index for the purpose to which it is being put by OSAM or FRI.
Please also note, where applicable, certain funds and/or strategies described herein are indexed to an MSCI index. In addition, MSCI hereby grants to Licensee a temporary, non-sublicensable (except as provided in its Agreement with OSAM), anon-transferable, non-exclusive license to hyperlink to MSCI’s website, www.msci.com, from any Licensee web page containing MSCI data or information. Further, Licensee hereby grants MSCI a temporary non-sub licensable, non-transferable, non-exclusive license to list Licensee as a licensee of MSCI data and to hyperlink to Licensee's website. For the avoidance of doubt, nothing herein shall confer any rights to MSCI in the Informational Materials where the Marks and MSCI logos may appear. Each of these licenses may be revoked at any time by MSCI or Licensee without notice without affecting any of the other rights granted hereunder. Again, if applicable: MSCI, the investment strategies provided by OSAM are not sponsored, endorsed or promoted by MSCI Inc., any of its affiliates, any of its information providers or any other third party involved in, or related to, compiling, computing or creating, including but not limited to, any MSCI index and/or ESG and Climate ratings and data, etc. (collectively, the “MSCI Parties”). Information from or about MSCI data is provided on an “as is” basis and the user of such information assumes the entire risk of any use it may make or permit to be made of such information. None of the MSCI Parties makes any express or implied warranties or representations with respect to such information or the results to be obtained by the use thereof, and the MSCI Parties hereby expressly disclaim all warranties (including, without limitation, all warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to such information. Without limiting any of the foregoing, in no event shall any of the MSCI Parties have any liability for any direct, indirect, special, incidental, punitive, consequential or any other damages (including, without limitation, lost profits) even if notified of, or if it might otherwise have anticipated, the possibility of such damages. msci.com
Finally, after-Tax Returns are calculated on a pre-liquidation basis and in accordance with USIPC accounting standards. Tax alpha is generally an estimate of the additional impact or value added/(detracted) from an account through tax management, and it may be influenced by factors including, but not limited to, asset allocation, method of funding, manager skill in portfolio construction and implementation, market appreciation, cash flows, and client-specific tax parameters. To estimate tax alpha, pre- and after-tax returns are calculated for the account as well as pre- and after-tax representative benchmark returns which seek to illustrate how an account with similar inception funding and ongoing cash flows but without an active tax management overlay would have performed. Tax rates inputted by the advisor are used for calculation purposes and are assumed to be accurate. Representative benchmarks assume dividend reinvestment and fractional shares are available. Tax alpha = (after-tax return – after-tax representative benchmark return) – (pre-tax return – pre-tax representative benchmark return). After-tax performance is an estimate contingent upon methodology and assumptions, has inherent limitations, and should not be used for tax reporting purposes. The calculation assumes that the tax benefit from net realized losses is recognized on the day that the realization occurs, and the estimated tax benefit is immediately reinvested in the account where it can compound. This assumes net realized capital losses can be used to offset realized capital gains outside the account, which may not exist for the investor. If the portfolio is neither gifted nor bequeathed, the investor will pay taxes on the realized gains upon liquidation, which will affect after-tax returns, and the stated after-tax return would therefore be different than the actual investor experience. Tax management involves the risk that new investments that replace old investments perform worse than the original investment and the performance difference and transaction costs could offset any tax.
*except in the unlikely event that the performance of the proxy used in lieu of the actual ETF was materially different (positive or negative)