CHICAGO, March 4, 2014 -- Envestnet, Inc. (NYSE: ENV), a leading provider of integrated wealth management technology and services to investment advisors and wealth managers, announced today that Envestnet | PMC (PMC), its portfolio consulting group, has launched its Liquid Endowment Portfolios (LEP), a new series of multi-manager portfolios. The LEP series will use the latest thinking on asset allocation to combine asset classes as well as strategic, tactical, and alternative strategies in an effort to build wealth, while seeking to combat the volatility that drives many investors out of the market during rocky periods.
The LEP series is part of PMC's Guided Portfolios Program, a selection of portfolios that combine diverse investment vehicles into one account in a unified managed account (UMA) format, with transparency and no hidden fees.
"We have worked extensively with thousands of individual advisors and found that they want our best thinking matched with our best technology to help them manage clients' portfolios consistently," said Jim Patrick, Executive Vice President of Advisor Managed Programs, Envestnet. "In our Guided Portfolios Program, we have taken our full suite of UMA capabilities and paired it with our highly refined asset allocation and manager selection processes. The result is a fully integrated investment solution that scales to meet a wide range of client needs and helps advisors simplify their investment management tasks."
LEPs tie together Envestnet | PMC's proprietary asset-allocation approach and high conviction manager ideas. They also use Envestnet's extensive research on when active or passive management is the most cost-effective for investors.
As one of the first offerings in Envestnet | PMC's new Guided Portfolios Program, LEPs combine strategic asset class allocations, tactical managers and liquid alternative investment strategies in an effort to enhance diversification in portfolios. The liquid alternative allocation is designed to help guard against rising correlations and risk of loss during major market drops.
Rising correlations across asset classes have become more of a systemic concern since 2000, and especially since the market crash in 2008, when stocks, bonds and real estate all lost value together. LEPs use liquid alternatives to add another level of diversification by introducing hedge-like strategies. In addition, LEPs employ tactical managers that have latitude to allocate away from equities during down markets.
"If we can reduce volatility and underperformance during down markets, then we believe investors will be more likely to stay the course for the long haul," said Michael Featherman, Director of Portfolio Strategies, Envestnet | PMC. "The LEP framework was inspired by university endowment methods and reinforced by client and advisor demand for a more risk-managed portfolio. Advisors are facing more pressure than ever to deliver better outcomes for clients, and our fully transparent, open-architecture model aims to do just that."
LEPs consist of a mix of exchange-traded funds, mutual funds, separately managed accounts and fund strategist portfolios, and are offered at four asset tiers starting at $35,000. The LEPs are tailored to each asset tier allowing a broad range of investors access to an appropriate and cost-efficient roster of managers and index-based investments.
ABOUT ENVESTNET (NYSE: ENV)
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 results.
Envestnet's Advisor Suite® software empowers financial advisors to better manage client outcomes and strengthen their practice. Envestnet provides institutional-quality research and advanced portfolio solutions through our Portfolio Management Consultants group, Envestnet | PMC®. Envestnet | Tamarac provides leading rebalancing, reporting and practice management software.
For more information on Envestnet, please visit www.envestnet.com.
Lauren Bielski, JCPR