CHICAGO, March 31, 2015 /PRNewswire/ -- Envestnet,
Inc. (NYSE: ENV) has launched a new series of Factor-Enhanced
Portfolios designed to combine the benefits of index-based
investments with active exposure to key factors that strive to
improve risk-adjusted returns compared with traditional market
capitalization-weighted indexes.
The new series is part of the Quantitative Portfolios (QPs),
managed by Envestnet's portfolio consulting group, Envestnet | PMC
(PMC). QPs are a suite of asset class-specific investments
that let advisors help clients move beyond simple index-based, or
"beta," products.
"Beyond beta" products such as the QPs are a fast-growing,
innovative market category that effectively combines the low cost
and diversification of indexed approaches such as exchange traded
funds with the control and customization benefits typically found
only in "active" products through separately managed accounts. To
learn more about all the Quantitative Portfolios, including the
three new Large Cap, All Cap, and Small Cap Factor-Enhanced
Portfolios visit: (http://www.investpmc.com/QP)
A More "Personalized" Approach
The Factor-Enhanced Portfolios are separately managed account
portfolios tracking the Envestnet Factor-Enhanced Indexes, which
are subsets of major market indexes weighted using a combination of
two key return drivers: momentum and value.
"Our Factor-Enhanced Portfolios raise the bar dramatically for
products offering more 'personalized' approaches that also retain
the benefits and appeal of indexing, including cost efficiency,"
said Jud Bergman, Chairman and Chief
Executive Officer, Envestnet.
"Effectively capturing security characteristics that drive
returns in an index structure, our new Factor-Enhanced products let
advisors provide clients with an attractive new source of potential
return 'beyond beta' and at lower cost than an active vehicle,
strongly reinforcing the advisor's value in the investment
selection process," he said. "The launch of the
Factor-Enhanced Portfolios reaffirms our commitment to
best-in-class investment solutions that help advisors tailor
portfolio outcomes for results-driven clients."
PMC's factor-enhanced approach is based on research into
hundreds of factors driving stock prices and portfolio returns
identified by academic and industry researchers over the past
several decades.
"Our proprietary research and indexes hone in on the most
statistically significant factors to help advisors create excess
returns for their clients," said Brandon
Thomas, Co-Founder and Chief Investment Officer, PMC. "By
actively managing exposures to these two non-market factors --
momentum and value -- we can construct separate account portfolios
that have the potential to outperform over time."
For information about the intuition and process supporting PMC's
factor investing approach, download their white paper: Envestnet
Factor-Enhanced Index Series: A Systematic Approach to Capturing a
Combination of Robust Factor Exposures
(http://www.investpmc.com/sites/default/files/documents/EN_FactorEnhanced_WP.pdf)
PMC's Quantitative Portfolios were launched last year with the
Market Series, a suite of portfolios that closely track an
underlying market index, with a focus on domestic and international
equity markets. Each portfolio cost-efficiently captures the
index's important characteristics, while offering the opportunity
for customization and greater tax efficiency. They are offered in a
unified managed account sleeve as well as three separately managed
account versions with varying levels of tax management
services.
About Envestnet | PMC
Envestnet, Inc. (NYSE: ENV) is a leading provider of unified
wealth management technology and services to investment advisors.
Our open-architecture platforms unify and fortify the wealth
management process, delivering unparalleled flexibility, accuracy,
performance, and value. Envestnet solutions enable the
transformation of wealth management into a transparent,
independent, objective, and fully-aligned standard of care, and
empower advisors to deliver better outcomes.
Envestnet | PMC provides independent advisors, broker-dealers,
and institutional investors with the research, expertise, and
investment solutions—from due diligence and comprehensive manager
research to portfolio consulting and portfolio management—they need
to help improve client outcomes.
For more information on Envestnet | PMC, please visit
http://www.investpmc.com/ and follow @ENVintel
(https://twitter.com/envintel).
CONTACT: Miles Hill
JCPR
646.922.7774
mhill@jcprinc.com
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SOURCE Envestnet | PMC