CHICAGO, Oct. 15, 2020 /PRNewswire/ -- Envestnet, Inc.
(NYSE: ENV) announces that its Quantitative Research Group ("QRG")
team has launched a new Quantitative Portfolio (QP), the Impact
Global Climate Solutions QP. This strategy offers a passively
managed, global equity portfolio enabling investors to allocate
assets toward companies developing solutions for mitigating
pollution and climate change.
The Impact Global Climate Solutions QP consists of approximately
200 domestic large-cap and international developed market companies
from its benchmark*, and is designed to mimic the index's overall
characteristics. Each company in the QP is evaluated by the QRG
team using environmental ratings, revenue information, and carbon
risk data from Sustainalytics, a leading independent provider of
global environmental, social, and governance (ESG) research and
ratings. Companies deriving revenue from the fossil fuel industry,
or companies that have been involved in environmental
controversies, are removed from the portfolio.
In addition, QRG utilizes five environmental tilts to increase
exposure to companies dedicated to solving climate-related
issues:
- Renewable Energy: The portfolio currently has a
200% higher allocation to renewable energy production and
transmission companies than the benchmark.
- Energy Efficiency: The portfolio currently has a 200%
higher allocation to companies producing or enhancing energy
efficient technologies and practices, compared to the benchmark.
- Green Transportation: The portfolio currently has a
200% higher allocation to companies dedicated to providing
green transportation options, compared to the benchmark.
- Green Buildings: The portfolio currently has a 200%
higher allocation to companies involved in the construction of
green buildings than the benchmark.
- Sustainable Agriculture: The portfolio currently has a
200% higher allocation to companies providing and developing
sustainable agriculture products and technologies, compared to the
benchmark.
"There are many sophisticated climate-aware strategies, but they
are actively managed, and the climate indices underpinning them are
often static, exclusion-focused, and have high potential for
tracking error compared to the parent index," said Brandon Thomas, Co-Founder and Chief Investment
Officer of Envestnet. "Our Impact Global Climate Solutions QP
fills a major gap in the marketplace for a passively managed,
cost-effective strategy which is focused on supporting companies
engaged in solving climate-related issues."
The QRG team's unique reporting capabilities break down the
Impact Global Climate Solutions QP's holdings into statistics which
show investors how the portfolio, and their investments, are making
a difference. The QP reports approximate how much lower the
portfolio's carbon footprint is compared to the benchmark, and
demonstrate the significance of the carbon reduction, such as how
many fewer gallons of gasoline and pounds of coal have been burned
as a result. Reports also illustrate how many gigawatt hours of
renewable energy the portfolio's holdings have produced, and how
many homes can be powered with that energy per year. For more
information, please visit https://www.envestnet.com/qrg.
The QRG team optimizes the portfolio using a proprietary
multi-factor risk model, while ensuring its environmental and
carbon footprint metrics are better than those of the benchmark. In
addition, Envestnet | PMC's tax overlay services may help the
portfolio generate tax alpha for investors. To learn more, please
visit https://www.investpmc.com/impact.
"At a time of unprecedented public concern around climate
change, we are providing investment solutions which help investors
maximize the impact they can have," said Brett Wayman, Vice President of Impact Investing
at Envestnet. "The impact investing strategies we have
developed give investors the power to allocate their dollars toward
creating a greener, more energy efficient economy."
As of June 30, 2020, assets in
Envestnet's ESG and tax overlay solutions increased by 38% over
prior-year levels, and the environmental overlay continues to be
one of the most requested ESG overlay options. Envestnet's suite of
Impact QPs experienced a 63% year-over-year increase in assets
under management—and their product features were recognized by
InvestmentNews, which honored Envestnet with its Innovation
Award last year.
* The Impact Global Climate Solutions QP's benchmark is a blend,
consisting of CRSP US Large Cap Index (69%) and S&P/BNY Mellon
DM ex US Classic ADR Index (31%).
Nothing contained in this release 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. All opinions and views constitute our
judgments as of the date of writing and are subject to change at
any time without notice. This release should not be construed as a
recommendation or endorsement of any particular product, strategy,
or firm. Income from investments, if any, may fluctuate and
that price or value of securities and investments may increase or
decrease. Accordingly, investors may lose some or all of the value
of principal initially invested. Past performance is not a
guarantee of future results.
About Envestnet
Envestnet, Inc. (NYSE: ENV) is transforming the way financial
advice and wellness are delivered. Our mission is to empower
advisors and financial service providers with innovative
technology, solutions, and intelligence to make financial wellness
a reality for everyone. Over 103,000 advisors across more than
4,900 companies—including 16 of the 20 largest U.S. banks, 46 of
the 50 largest wealth management and brokerage firms, over 500 of
the largest RIAs, and hundreds of FinTech companies—leverage the
Envestnet platform to grow their businesses and client
relationships.
For more information on Envestnet, please visit
www.envestnet.com, subscribe to our blog, and follow us on Twitter
(@ENVintel) and LinkedIn.
Media Contact
Dana Taormina
JConnelly for Envestnet
973.647.4626
envestnetpr@jconnelly.com
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SOURCE Envestnet, Inc.