Values Overlay Services provides a truly customized values alignment experience, allowing advisors to exclude investment exposures based on a client’s personal convictions.
Combined with Envestnet | PMC’s patented risk-based optimization, resulting portfolios seek to not only adhere to the investor’s priorities, but also align with the strategy of each investment manager within the portfolio—delivering a complete solution to help advisors support their clients who seek both positive social impact and financial return.
Risk-Based Optimzation
Customizing a client's portfolio by removing exposures they may find objectionable
is one part of the process, but how to reconcile a client's personal convictions with and
investment manager's decisions? Our patented risk-based optimization is designed to
balance potentially disparate priorities and deliver a solution that aligns the client's
values with the manager's model and objectives.
The Process
Original Model Portfolio
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Values Screening
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Risk Optimization Process
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Client-Customized Compliant Portfolio
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The client and advisor review the original, unconstrained model portfolio.
PMC screens out the stocks deemed undesirable by the client.
PMC's patented risk engine implements the client-specific requests, while adhering to the manager's model and minimizing tracking error.
The resulting portfolio is risk customized and closely matches the security risk characteristics of the original model portfolio.
Values Restrictions
The overlay restriction program at Envestnet allows clients to apply
customized values restrictions to their investment portfolios. There
are 23 different restriction criteria available.
