The Five Pillars of Impact Investing Success
84% of Millennials and 76% Women
are interested in impact investing.
MORGAN STANLEY, 20151
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76%
84%
MILLENNIALS
WOMEN
Demand for impact investing has grown dramatically in recent years, and advisors are increasingly challenged to meet that emerging interest. Here’s how PMC’s five pillars can help you deliver a comprehensive impact investing program.
01
RESEARCH
Research shows that investment funds incorporating ESG factors
grew by over 6x in total net assets from 2010-2014.
US SIF FOUNDATION REPORT, 2015
$1.013B
$4.306B
$559M
PMC's rigorous research filters down a universe of
nearly 1,000 impact managers to 30
Approved-Impact Select managers.
450
150
30
IMPACT MANAGERS ON THE
ENVESTNET PLATFORM
APPROVED-IMPACT
MANAGERS
APPROVED IMPACT-SELECT
MANAGERS
2010
2012
2014
02
PRACTICE MANAGEMENT
OTHER SMA ACCOUNTS
IMPACT SMA ACCOUNTS
The average account size of impact SMAs is
larger than that of other SMA accounts –
A huge opportunity for advisors.
25%
ENVESTAT, MARCH 20152
US SIF FOUNDATION REPORT, 2015
of investors incorporate
5+ themes into their portfolios.
39%
US SIF FOUNDATION REPORT, 2015
PMC offers up to
screens of customization
so your clients can easily expand or
limit their investment options based
on practices they wish to support, and
businesses they choose to exclude.
17
Advisors who are aware of socially responsible
investments may have the ability to work
with younger investors more easily.
SPECTREM RESEARCH, 20153
PMC helps advisors engage clients and make more informed
impact investing decisions with timely commentary,
award-winning research4, and practice management tools.
03
OVERLAY
Different investors have different impact investing preferences:
$4.27B
INVESTED IN SOCIAL
$3.53B
INVESTED IN GOVERNANCE
$1.76B
INVESTED IN PRODUCTS
$2.94B
INVESTED IN ENVIRONMENT
Impact SMAs outperformed non-impact counterparts by
over a complete market cycle
15.4%
ENVESTAT, MARCH 20165
04
REPORTING
PMC quarterly reports will detail performance
against industry benchmarks and
include case studies to help highlight
success beyond portfolio returns.
05
INVESTMENT SOLUTIONS
Today, more and more investors want to
find financial return and achieve social good at the same time.
2006
2016
US SIF FOUNDATION REPORT, 2015
PMC Impact Portfolios are grounded in capital
markets assumptions and asset allocation
methodology, and constructed using
best-in-class impact managers
from that growing marketplace.
PMC Quantitative Portfolios will
provide cost-effective, large-cap
index exposure to securities with
high Sustainalytics ratings.
TIME
The information, analysis, or opinions expressed herein are for general and educational purposes only. Nothing contained in this presentation 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. Past performance is not indicative of
future results.
All investments carry a certain risk, and there is no assurance that an investment will provide positive performance over any period of time. Investment decisions should always be made based on the investor's specific financial needs and objectives, goals, time horizon and risk tolerance. The statements herein are based upon the opinions of Envestnet and/or third party sources. Information obtained from third party resources are believed to be reliable but not guaranteed. All opinions and views constitute our judgments as of the date of writing and are subject to change at any time without notice.
Envestnet is not responsible for any errors or omissions in the information contained in or accessed through this document. Envestnet reserves the right to add to, change or eliminate any of the services listed without prior notice.
About ENVESTAT: Envestat delivers regular digests of business intelligence designed to provide context to the decisions that financial advisors and enter- prise business owners face every day. While the regular digests provide insights that revolve around a quarterly theme, our quarterly, Envestat Intersection connects these insights to highlight the significance of the quarterly theme and its impact on advisory practices. The data provided is derived from Envest- net user data composite and has not been independently verified.
1. Morgan Stanley, “Sustainable Signals: The Individual Investor Perspective”, February 2015.
2. Data from SMA portfolios on the Envestnet platform from 2013 to 2015.
3. Spectrem Research, “High Net Worth Millennials, 2015”
4. PMC Quantitative Research 2014 paper, “How and Why SRI Performance Differs from Conventional Strategies” received an Honourable Mention for the 2014 Sustainalytics Prize for Excellence in Responsible Investment Research.
5. Data from impact and non-impact SMA portfolios, consisting of funds managed by PMC and/or third-party fund strategists, on the Envestnet platform from 2007 to 2015.
Learn more about how Envestnet | PMC Impact can help you add
a new dimension to your practice through best-in-class solutions
that support both positive social impact and financial goals.
Visit investpmc.com/impact.
In fact, the impact marketplace
has increased tenfold, or
929%
over the last 10 years.
RETURN
FINANCIAL RETURN
SOCIAL GOOD
INTENDED FOR INVESTMENT PROFESSIONAL USE ONLY.
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