Issue link: https://resources.envestnet.com/i/1527497
Values Overlay Services Comprehensive values-based screening to align investments with personal preferences For more information, go to envestnet.com/sustainable Envestnet | PMC Risk-Based Optimization For More Information To learn more about Values Overlay, email PMCConsulting@envestnet.com or visit our web site at envestnet.com/sustainable. 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 an 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 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, or 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 strategy. Investment decisions should always be made based on the investor's specific financial needs and objectives, goals, time horizon and risk tolerance. This material is not meant as a recommendation or endorsement of any specific security or strategy. In providing Values Overlay Services, Envestnet is dependent upon information provided by third-party data providers. Envestnet does not independently verify or guarantee the accuracy, timeliness, or comprehensiveness of such information. The assessments made by third parties are based on data that relates to a company's involvement in a particular product or ESG-related topic, and such data may not cover all of a company's services and practices. The overlay restrictions will only be applied in cases where the information is available, which is limited to a specific universe of securities covered by the third-party data providers. While our tools are designed to help advisors understand and implement the expressed preferences of their clients, this may not be possible in all situations due to inherent limitations on available data and investment options. At the discretion of Envestnet, values category criteria may change. Envestnet will periodically review the criteria and consider whether or not revisions may be appropriate. Envestnet is not affiliated with third party data providers. In providing values overlay services, Envestnet will allow client's account to deviate from client's selected investment strategy, based on the additional reasonable restriction instructions provided by the Client. With the Values Overlay Services, Client's account(s) may not own all holdings that are part of their selected model, and as a consequence, Client's account may experience significant performance differences from the selected investment strategy. In Client chooses an overlay, Envestnet makes no guarantee that the account's performance will be within any range of the selected investment strategy or the strategy's benchmark. For more details on PMC's research practices and/or portfolio attributes, please contact pmc@envestnet.com or call 1-888-612-9300. Advisors should always conduct their own research and due diligence on investment products and the product managers prior to offering or making a recommendation to a client. Neither Envestnet, Envestnet | PMC™ 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 HOME OFFICE AND ADVISOR USE ONLY. NOT FOR USE WITH THE INVESTING PUBLIC. ©2023 Envestnet, Inc. All rights reserved. PMC_FS_IOVER_0623 Original Model Portfolio Values-based Screening Risk Optimization Process Client-Customized Compliant Portfolio 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 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. implements the client-specific