ActivePassive Portfolios
[Pages:2]ActivePassive Portfolios
The next generation of portfolio construction
What's the best approach to asset management: active or passive? Although neither strategy is "best", an appropriate blend of active and passive solutions can help to deliver the best of both worlds.
Our goal: To optimize benefits, and limit challenges
Envestnet | PMC's ActivePassive Portfolios provide what we view as an ideal combination of active and passive investment strategies: pairing actively managed mutual funds with low-cost, tax-efficient index funds.
Benefits Challenges
Active Management
Passive Management
? In-depth analysis by experienced investment professionals ? Upside potential--seeks to achieve returns in excess of the index ? Downside protection--seeks to act defensively during market downturns and periods of uncertainty
? Generally, low management fees ? Ability to capture similar performance to the index
? Higher fees and operating expenses ? Poor security selection or sector allocation decisions may impair returns
? No ability to generate alpha over index returns ? Limited downside protection
Blending two opposing, yet complementary, investment styles
Sample Portfolio Allocations
Diversified Equity
98% Stock 2% Cash
16% International Equity 7% Small Cap 36% Large Cap 39% Global Equity 2% Cash
Balanced
55% Stock 43% Bond 2% Cash
30% Intermediate Bond 3% High Yield 9% International Equity 28% Large Cap 5% International Bond 23% Global Equity 2% Cash
Conservative Income
20% Stock 78% Bond 2% Cash
64% Intermediate Bond 5% High Yield 9% Large Cap 11% Global Equity 9% International Bond 2% Cash
These charts represent sample allocations for the ActivePassive Diversified Equity, Balanced, and Conservative Income Portfolios.
For more information, go to
Envestnet | PMC
ActivePassive Portfolios
The next generation of portfolio construction
Professionally managed portfolios across the risk spectrum
The ActivePassive Portfolios are designed for various investor risk profiles, ranging from aggressive to conservative. Key Features ? Disciplined manager selection ? Sophisticated active vs. passive research ? Tax-sensitive portfolio options ? Regular monitoring and rebalancing
ActivePassive Portfolio Series
Diversified Equity
Equities
98
Fixed Income
2
*Tax-sensitive portfolio options available
Diversified Equity w/ Income
83
17
Balanced Equity
72
28
Balanced 59 41
Diversified Income
46
54
Income 30 70
Conservative Income
15
85
Disciplined Manager Selection
Active Component When selecting active investments, PMC assesses: Performance: Returns are evaluated on a rolling basis Risk-Adjusted Performance: Returns achieved must reflect the appropriate level of risk Consistent Style: Managers must adhere to their stated investment objectives Quality: Managers' firm, staff, and investment processes must meet PMC standards
Passive Component
When selecting passive investments, PMC assesses: ? Expenses ? Liquidity and fund size ? Tax efficiency ? Tracking error (how closely the index matches the performance of
the underlying benchmark) ? Compatibility with the active component of the portfolio
The information, analysis, and opinions expressed herein are for general and educational purposes only. Nothing contained in this brochure is intended to constitute legal, tax, accounting, securities, nor investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. All investments carry a certain risk, and there is no assurance that an investment will provide positive performance over any period of time. An investor may experience loss of principal. The asset classes and/or investment strategies described may not be suitable for all investors and investors should consult with an investment advisor to determine the appropriate investment vehicle. Investment decisions always should be made based on the investor's specific financial needs and objectives, goals, time horizon, and risk tolerance. Past performance is not indicative of future results.
Investments in smaller companies carry greater risk than is customarily associated with larger companies for various reasons such as volatility of earnings and prospects, higher failure rates, and limited markets, product lines or financial resources. Investing overseas involves special risks, including the volatility of currency exchange rates and, in some cases, limited geographic focus, political and economic instability, and relatively illiquid markets. Income (bond) funds are subject to interest rate risk, which is the risk that debt securities in a fund's portfolio will decline in value because of increases in market interest rates.
Neither Envestnet, Envestnet | PMCTM nor its representatives render tax, accounting or legal advice. Any tax statements contained herein are not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state, or local tax penalties. Taxpayers should always seek advice based on their own particular circumstances from an independent tax advisor.
FOR ONE-ON-ONE USE WITH A CLIENT'S FINANCIAL ADVISOR ONLY.
?2015 Envestnet, Inc. All rights reserved.
PMC-FS-AP-0415
For more information, go to
Envestnet | PMC
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
- aggressive income investing more than just high yield
- chief investment office portfolios
- blackrock diversified income portfolio fidelity investments
- vanguard etf strategic model portfolios
- about tortoise and hare stock baskets morningstar inc
- morningstar managed portfoliostm income range
- investment insights building better fixed income portfolios
- merrill edge select portfolios merrill lynch login
- mutual fund broad diversification distinctive
- activepassive portfolios
Related searches
- best portfolios for retirees 2018
- my portfolios yahoo finance
- best model portfolios for retirees
- vanguard model portfolios for retirees
- best retirement portfolios for seniors
- yahoo finance my portfolios stocks
- income generating portfolios in retirement
- lazy portfolios for retirees
- retirement portfolios using vanguard funds
- my yahoo portfolios personal finance
- dailyfinance portfolios my portfolios
- my portfolios finance