Achieving positive social impact and financial performance is possible for investors with smaller accounts. The PMC Impact Foundation Portfolios are accessible at low cost by maintaining fewer holdings and lower turnover, and are constructed with high-conviction managers vetted by PMC Research and Sustainalytics.
Built on a history in impact investing, quantitative expertise, and partnerships with industry leaders, the PMC Impact Quantitative Portfolios track traditional market indexes with an explicit focus on companies with high sustainability ratings and/or environmental, social, and governance priorities. Investors benefit from cost-efficient beta exposure, access to important market segments, opportunities for tax management and social impact in a single, separately managed account.
Our previous Envestat revealed that while demand for impact investing is growing, it remains just a small percentage of Envestnet's overall SMA accounts. One reason for this shortfall may be the concern that there is a tradeoff in performance when choosing impact investments. However, our Envestat data revealed that this is more perception than reality.
Impact investing has received growing attention from a broad swath of investors, particularly with women and Millennials, who say values-based investing is especially important to them.
While client demand for impact investing is skyrocketing, this week's ENVESTAT shows it remains just a small percentage of Envestnet's overall SMA accounts. This suggests supply, and advisor interest, may not be keeping up with demand.
Today, more clients want to invest their wealth in a way that integrates their values with performance objectives. Advisors have an opportunity to win new business and deepen relationships by helping clients achieve this goal. Impact Investing Solutions provides comprehensive investing strategies that align a client’s portfolio with their personal convictions.
On the Envestnet platform, the socially responsible investing (SRI) superscript identifies Impact integrated managers. These investment managers integrate one or more of the following lenses into their investment process: Environmental, Social and Governance (ESG) factors, Controversial Business Practices, Sustainability Issues, and Impact and Community Investing.
The overlay screening program allows clients to apply customized screens to their investment portfolios. There are 17 different screens available, many of which have both a Best in Class and Strict screen. Clients are able to select up to 11 screens to apply.