Envestnet | PMC Launches ActivePassive ETFs, Combining Attributes of Active & Passive Management in One Cost-Effective Portfolio Solution

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May 09, 2023, 08:30 ET

New Product Suite will be Available in ActivePassive PMC Portfolios—Leveraging the Tax-Efficient & Liquid ETF Structure with No Additional Management Fee

BERWYN, Pa., May 9, 2023 /PRNewswire/ -- At a time when many advisors are seeking to create portfolio solutions featuring the benefits of both traditional active investments and low-cost passive investments, Envestnet | PMC has launched a series of ActivePassive Exchange-Traded Funds (ETFs) enabling financial advisors to access this combined strategy within cost-effective, tax-efficient, liquid, and transparent investment vehicles. These new ETFs will be featured in the ActivePassive PMC ETF Portfolios¹.

This launch supports Envestnet | PMC's ongoing research indicating that systematic factor-based strategies and skilled, traditional active strategies combined with passive investment vehicles may be a more efficient and cost-effective approach to returns generation. The four ActivePassive ETFs—the ActivePassive U.S. Equity ETF (APUE), ActivePassive International Equity ETF (APIE), ActivePassive Core Bond ETF (APCB), and ActivePassive Intermediate Municipal Bond ETF (APMU)—consist of passive and factor-based exposures managed by Envestnet, and active exposures managed by third-party industry known investment managers that are carefully vetted by PMC's research team.

"As pioneers bringing together active and passive investment styles, our mission has always been to provide investors with a single portfolio that marries the best attributes of both active and passive investing at a low cost," said Dana D'Auria, CFA, Co-Chief Investment Officer and Group President of Envestnet Solutions. "ETFs are inherently tax-efficient and liquid structures, and help make it easier for advisors to build portfolios aligned with client needs. We are proud to be able to make active and passive investing combinations both actionable and accessible to advisors and their clients."

The ETFs are available in the ActivePassive PMC ETF Portfolios, Envestnet | PMC's ActivePassive multi-asset model portfolios, and have been offered to implement the views of the models' portfolio managers in a tax-efficient way with no additional management fee. Greg Classen, CFA, Principal Director of Portfolio Management at Envestnet | PMC, and Tim Murphy, Director of Portfolio Management at PMC, have led the management of the ActivePassive PMC Portfolios since 2014, producing attractive results relative to benchmarks and peers.

"The launch of the ActivePassive ETFs gives us the opportunity to harness all of our best asset management and research resources within PMC and across the Envestnet ecosystem for the benefit of advisors and their clients," said Brooks Friederich, Principal Director of Research Strategy at Envestnet | PMC. "Our ActivePassive portfolios and ETF wrapper options simplify the blending of active and passive investments for advisors, aimed at allowing them to devote more time to revenue-producing activities and helping to improve outcomes for their clients."

More information about the ActivePassive ETF Portfolios is available at https://go.envestnet.com/l/810433/2022-08-29/p3tq3t

About Envestnet
Envestnet is transforming the way financial advice is delivered through an ecosystem of technology, solutions and intelligence. By establishing the connections between people's daily financial decisions and long-term financial goals, Envestnet empowers them to make better sense of their finances and live an Intelligent Financial Life™. With more than $5 trillion in platform assets – more than 106,000 advisors, 16 of the 20 largest U.S. banks, 47 of the 50 largest wealth management and brokerage firms, more than 500 of the largest RIAs, and thousands of companies, depend on Envestnet technology and services to help drive better outcomes for their businesses and for their clients.

Envestnet refers to the family of operating subsidiaries of the public holding company, Envestnet, Inc. (NYSE: ENV). For more information on Envestnet, please visit www.envestnet.com and follow us on Twitter (@ENVintel).

For more information about Envestnet | PMC, please visit https://www.investpmc.com.

Media Contact:
Dana Taormina
JConnelly for Envestnet
[email protected]
(973) 647-4626

Before investing you should carefully consider the fund's investment objectives, risks, charges and expenses. This and other information in the prospectus, a copy of which may be obtained from 1-800- 617-0004 or www.activepassive.com. Please read the prospectus carefully before you invest.

Investing involves risk including possible loss of principal.

Investments that utilize an ActivePassive strategy carry specific risks that investors should consider before investing in ActivePassive portfolios. In certain market conditions, combining active and passive investment strategies may lose value or underperform fully active or fully passive strategies. ActivePassive investment strategies are also subject to the risks of both active and passive investment strategies. Active investment strategies are subject to active risk. Active risk arises by deviating a portfolio or investment away from its passive benchmark through portfolio management decisions that are made by either humans or software which are subject to error and/or bias. Passive investment strategies have the risk of not closely track the performance of the underlying index they seek to replicate. While attempting to track an index, passive investments often do not consider a company's profitability, financial health, or growth potential in their investment selection criteria.

Only authorized participants ("APs") may engage in creation or redemption transactions directly with the Fund. The Fund has a limited number of institutions that may act as APs and such APs have no obligation to submit creation or redemption orders. Consequently, there is no assurance that APs will establish or maintain an active trading market for the shares.

The ETFs are distributed by Foreside Fund Services, LLC. Foreside is not affiliated with Envestnet | PMC.

¹ The PMC ActivePassive portfolios are available for use by financial advisors on the Envestnet platform only. The investor should consult with their financial advisor for guidance when seeking to invest in the ActivePassive ETFs that may be accessed through the ActivePassive Portfolios or via direct investment.

SOURCE Envestnet, Inc.