Envestnet Brochures

The PMC Philosophy Envestnet | PMC investment programs are the result of a multifaceted and collaborative research, consulting, and portfolio construction process. Deeply rooted principles provide the framework for building diversified, risk-managed portfolios to meet the long-term investment goals of a broad spectrum of clients. These principles include: Adding Value Through a Disciplined Investment Process With more than 20 years of experience in research, consulting, and portfolio management, PMC has a proven history of adding value at all stages of the investment process and delivering solutions that fit the needs of almost any investor. PMC's process incorporates rigorous qualitative review and quantitative analysis, including: • Capital markets assumptions. These are the expected returns, standard deviations, and correlations that represent the long-term risk/return forecasts for the asset classes on the Envestnet platform. • Quantitative ranking models. PMC ranks all mutual fund and separately managed account (SMA) portfolios quarterly within each Envestnet peer group over trailing periods. For exchange-traded funds (ETFs), PMC identifies a list of high-conviction beta exposures. • Asset allocation. Thoughtful and professional asset allocation and a sound investment plan can help minimize losses and build market- proof portfolios to guard against volatility and uncertainty. • Vehicle and investment selection and monitoring. Identifying and monitoring managers that consistently outperform their benchmarks on a risk-adjusted basis, selecting appropriate managers from that set, and determining whether they should be actively or passively managed are key considerations in the investment planning process. • Portfolio construction and rebalancing. When done correctly, diversification across the sub-asset classes can enhance a portfolio's risk/return profile. Regular portfolio rebalancing also helps keep allocations and risk exposures in line. Research Consulting Portfolios

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