Envestnet | PMC, the Portfolio Management Consultants group of Envestnet, has launched three new Impact QPs. The entire suite of QPs recently surpassed USD1 billion in total assets under management.
The Impact Small Cap Core Portfolio-ESG, Impact International ADR Portfolio-ESG, and Impact Emerging Markets ADR Portfolio-ESG are constructed by PMC’s Quantitative Research Group (QRG) using environmental, social, and governance (ESG) company data from Sustainalytics, an independent global provider of ESG research and ratings.
“Our QP products provide cost-efficient, transparent access to high-sustainability securities across multiple asset classes, and can be tailored to an investor’s goals and preferences using a separately managed account (SMA) structure,” says Brandon Thomas, Chief Investment Officer of Envestnet | PMC. “Advisors have increasingly been incorporating QPs into client portfolios, as they recognise the value of our QPs and the cost-effective exposure to important market segments they provide. We look forward to continuing to work with advisors to deliver the attributes of both active and passive investment strategies.”
Like PMC’s other Impact QPs, these three new portfolios utilise a direct indexing approach, explicitly focusing on companies with high sustainability ratings and/or environmental, social, and governance priorities. In combination with PMC’s Overlay Services offering, QPs offer tax-loss harvesting opportunities for potential “tax alpha” which can add significant value on an annual basis.
“Our Impact QPs empower advisors and institutions to offer clients an index-based solution comprised of companies that are selected to optimise the overall portfolio in terms of positive ESG factors to help align their clients’ investments with their values – and to do so with the same amount of control and transparency as an SMA along with the lower cost of an ETF,” says James Lumberg, Co-Founder and Executive Vice President of Envestnet. “We remain committed to enhancing our suite of impact investing products to help advisors and institutions demonstrate further value for their clients while also improving investment outcomes.”
