Impact Investing | Envestnet PMC

Important Updates from PMC

7/29/20Envestnet Blog: Investing Through a Lens of Social Justice

7/13/20Envestnet Blog: Current Events May Pull Impact Investing Into The Mainstream

6/16/20Q2 2020 Impact Newsletter: ESG During COVID-19

5/20/20Envestnet Blog: Cut Through the Noise: Evaluating ESG Strategies

PMC Resources

Insights

Timely commentary and practice management tools from PMC help advisors engage clients and make more informed impact investing decisions.

Investing Through a Lens of Social Justice One of the major drivers of advisor trust is truly listening to clients and putting their interests first, which includes those clients’ personal values.

Sustainable Investing Doesn’t Mean Sacrificing Returns It is now widely accepted that the integration of environmental, social and governance (ESG) insights into investment decision-making at a minimum does not sacrifice performance. Analysis and studies from Morgan Stanley, Bank of America, Deutsche Bank, Harvard Business School, Oxford, MSCI, TIAA-CREF, and UBS, among others, point to this conclusion.

Talking to Clients About Impact Investing Doesn't Have to Be Awkward Sustainable investing provides a clear opportunity to engage with the families you work with and create deeper, more meaningful intergenerational relationships.

ESG Fund Ratings: Not Perfect, but Still Valuable Critics of environmental, social and governance fund ratings often cite numerous reasons as to why the ratings lack validity. While the ratings aren’t perfect, we explore some of the reasons why we believe they are worthwhile and how they may continue to improve.

Cut Through the Noise: Evaluating ESG Strategies According to Morningstar, the sustainable funds universe grew to 303 open-end and exchange-traded funds in 2019. Further, the number of conventional funds that claim to “consider” ESG factors has grown enormously – up from 81 in 2018 to now 564 funds.

Market Volatility, ESG, and Deeper Client Engagement The coronavirus pandemic has sent shock waves through the global healthcare system, our communities, and our economy. By investing in strategies that integrate environmental, social, and governance (ESG) criteria into analysis, advisors can offer their clients downside protection, more resilient portfolios, and a way to connect with the issues they care about most.

Community Investing: How To Invest In The Underserved Community investing presents a strong opportunity for direct, meaningful, and measurable impact for an investor – and can often serve as a low-risk, high-impact component of an investment portfolio – delivering social benefit alongside financial return.

Values-Driven Portfolios That Connect With Investors Impact investing provides investors with an opportunity to align their portfolios with their personal values, while still meeting their financial wellness goals.

Earth Day, Every Day: Climate Conscious Investing Investors are increasingly recognizing that when you look at many of the macroeconomic trends of today – flooding, hurricanes, gun control, the opioid crisis – you have to look at your portfolio through a different lens.

Gender-Lens Investing: How to Invest to Advocate for Women In the US, female representation at more senior levels of corporate leadership has experienced minimal change, despite women’s increased participation in the workforce and a heightened focus on building inclusive workplaces.

The Impact Investing Imperative for Advisors June 22, 2018: Jim Lumberg, Envestnet co-founder, says as advisors face challenges in retaining clients in today's competitive climate, impact investing is key to forging deeper relationships.

Community Wealth Building and Social Impact Investing in 2018 June 22, 2018: Luke Seidl from Veris Wealth Partners talks about the opportunities for private capital to address income inequality, promote inclusive growth and quality jobs, and advance human rights and social justice.

Video: Beating Benchmarks and Shifting Construction Tim Clift, Envestnet's Chief Investment Strategist, talks about the changing landscape of impact portfolio construction, performance, and more.

Video: How Do I Pick A Good ESG Manager? Brett Wayman, VP at Envestnet | PMC, sits down with Dana Investment Advisors SVP Doug Classen to discuss finding qualified ESG advisors.

Video: The Future of Impact Jim Patrick, EVP and Head of Advisor Services at Envestnet, talks about the future of impact investing.

Reaching Millennials: Your Future Success Depends on It May 16, 2018: Kelly Coyne, Vice President at Impax Asset Management and Pax Ellevate Management, explains why advisors should focus on growing their millennial client base.

Marshalling Resources to Bring About Change April 18, 2018: Jim Lumberg tackles commonly asked questions from advisors after the Parkland, FL school shooting.

The ESG Data Revolution April 18, 2018: Adam Bernstein, ESG Specialist with Gitterman Wealth Management, explains how advisors can take advantage of the volume of ESG data.

Video: Can fixed income investors make an impact? Investment analysts Michael Wedekind and Eric Halverson discuss the vast and growing opportunities for fixed income impact investors.

Video: Investing With a Gender Lens Is it possible to invest explicitly on gender diversity, gender impact, and ESG principles? Pamela Jacobs, Ali Caffery, and Manogna Bobbala weigh in.

Video: What's the future of impact investing? At the 2017 Envestnet Advisor Summit, senior Envestnet executives and PMC specialists weighed in.

A History of Impact Investing June 22, 2017: Jim Lumberg explores the history of impact investing, from its roots in the 18th century through today.

Gender Lens Investing: Growing Interest, Increasing Options April 20, 2017: Patricia Farrar-Rivas, CEO, Veris Wealth Partners, talks about growing interest in gender lens investing strategies.

How Sustainable Investing is like Climbing a Mountain April 14, 2017: Jim Lumberg talks about how reaching the summit of Mount Everest strengthened his belief that sustainable investing can help solve the world's problems.

5 Reasons Advisors Need to Rethink Impact Investing April 14, 2017: Portfolio Manager Ali Caffery explains how impact investing can help advisors tap into the $30 trillion wealth transfer in the next few years.

Webinar Replay: Connecting on Impact September 26, 2017: PMC and Sustainalytics discussed how impact investing fits within overall financial planning, and how advisors can meaningfully connect with interested clients.

Video: The Evolution of Impact Investing James Lumberg, Envestnet co-founder, discusses how far Impact investing has come in the past decade and new challenges and opportunities for advisors.

Video: Applying Financial Analysis to Impact Investing Eric Halverson, investment analyst with Envestnet | PMC talks about the emergence of new tools and technologies that assist in evaluating SRI and ESG metrics.

Video: Crafting Portfolio Strategies with Sustainable Goals Brett Wayman, senior portfolio strategist with Envestnet | PMC, discusses strategies for helping investors find alpha through incorporating ESG principles into their analysis.

Video: Merging Tech & Financial Advice Brandon Thomas, Chief Investment Officer of Envestnet | PMC, discusses merging new technology with financial advice.

Video: Bringing Impact Tools to Advisors Envestnet President Bill Crager talks about how the company is delivering impact investing technology platforms to financial advisors.

Current Events May Pull Impact Investing Into The Mainstream Recent events, including the COVID-19 pandemic and protests to end racism in America, are putting a bright spotlight on corporate governance and may pull impact investing into the mainstream.

Solutions

PMC's impact solutions include risk-based portfolios built on forward-looking capital markets assumptions and asset allocation methodology; low minimum account solutions; and quantitative portfolios providing asset class exposure to highly rated ESG securities. In addition, our cutting-edge platform allows advisors to apply investment screens to customize client portfolios based on social investing preferences.

Quarterly Materials

PMC Impact Portfolios A look at how the PMC Impact Portfolios performed during the quarter.

Contact a Consultant Please contact a consultant to obtain the latest portfolio performance reports.

Marketing Materials

PMC Impact Portfolios: Closer Look at Holdings Impact Portfolios are comprehensive, disciplined, and diversified solutions designed for investors with environmental, social, and governance (ESG) priorities. Seven risk-based portfolios are constructed using high-conviction impact managers identified through Envestnet | PMC’s thorough, multi-layered research and due diligence process.

Envestnet's Impact Investing Platform Our impact platform can help advisors support clients who seek both positive social impact and financial returns.

PMC Impact Portfolios Seven risk-based portfolios are constructed using high-conviction impact managers identified and vetted by PMC and Sustainalytics.

PMC Impact Foundation Portfolio Low cost, low minimum portfolios constructed with high-conviction impact managers vetted by PMC and Sustainalytics.

Personal Conviction Overlay Screens Clients can apply up to 11 customized socially responsible screens to their investment portfolios. There are 17 different screens available, many of which have both a Best in Class and SRI Strict screen.

Education

From our partners: educational resources for advisors and investors interested in impact investing.

Investopedia: Impact Investing Hub Education portal equips investors with knowledge and insights to take the first step in actionable engagement with advisors—and vice versa.

Sustainalytics’ Research Report Assesses Material ESG Risks Facing Investors Report profiles 10 companies with low levels of unmanaged ESG risk.

Veris Wealth Partners Impact Report Highlights the progress being made by public and private companies within Climate Change and Environment, Community Wealth Building & Social Justice, Gender Lens Investing, Sustainable Agriculture and Food Systems, and Mindfulness and Sustainability.

The Five Essentials

Research, Overlay, Solutions, Reporting, and Implementation are the Five Essentials of PMC Impact Investing.

Impact Manager Due Diligence Guide Envestnet | PMC Research incorporates an additional layer of analysis to its comprehensive research and due diligence process to uncover high-conviction equity and fixed income managers that are meaningfully and systematically integrating impact factors into the investment process across the spectrum of impact approaches.

Impact Investing Solutions Product Guide Look at the Five Essentials of Impact and how Envestnet is providing the impact solutions within those essentials for advisors

Envestnet's Impact Investing Platform Our impact platform can help advisors support clients who seek both positive social impact and financial returns.

Infographic: The Five Pillars of Impact Investing Here's how PMC's five pillars can help you deliver a comprehensive impact investing program.

Video: Finding the Managers that Make an Impact Learn about our process for uncovering high-conviction "impact" managers — those managers with environmental, social, and governance-related investing mandates.

How and Why SRI Performance Differs from Conventional Strategies PMC Quantitative Research found that impact investing does "no harm" relative to unconstrained, conventional investing. This paper received an Honourable Mention for the 2014 Sustainalytics Prize for Excellence in RI Research.

ENVESTAT: Doing Well and Doing Good Are Not Mutually Exclusive Is there is a tradeoff in performance when choosing impact investments? This special edition on impact reveals that notion of performance may be more perception than reality.

ENVESTAT: Impact Investing, Poised for Growth Client demand for impact investing is skyrocketing, but remains a small percentage of Envestnet's overall SMA accounts. This suggests supply, and advisor interest, may not be keeping up with demand.

THIS WEBPAGE IS FOR INVESTMENT PROFESSIONAL USE ONLY. NOT INTENDED FOR PRIVATE INVESTORS.

The information, analysis, and opinions expressed herein are for general information only. Nothing contained on this webpage is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. Investing carries certain risks and there is no assurance that investing in accordance with the portfolios mentioned will provide positive performance over any period of time. Investors could lose money if they invest in accordance with the portfolios discussed herein. Past performance is not indicative of future results.

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