Turnkey asset management program Envestnet is looking to bolster its research ranks with two new gatekeepers.
The firm’s Portfolio Management Consulting (PMC) group is planning to hire a model portfolio manager and a research analyst.
The PMC group is currently comprised of 25 research analysts and nine model portfolio managers, and is headed by chief investment officer Brandon Thomas and chief investment strategist Tim Clift.
The new hires will not replace leaving team members but are new positions, according to Clift.
The team has also been working to boost its ESG offering for advisors and plans to launch new quantitatively-run model portfolios in the coming months.
‘Our team is continually evolving our quantitative portfolios,’ Clift said. ‘I know they’ve been doing much more granular versions, so a Catholic values and maybe a carbon footprint version of the quantitative portfolios may be coming out soon.’
The team already offers a number of quantitatively-run ESG portfolios, including: Impact Small Cap Core Portfolio-ESG, Impact International ADR Portfolio-ESG, and Impact Emerging Markets ADR Portfolio-ESG.
On a separate note, in April PMC teamed up with asset manager OppenheimerFunds to offer a new range of model portfolios that uses both active and passive funds.
The seven portfolios, which run the risk spectrum from capital preservation to aggressive, use eight active Oppenheimer funds, three passive funds from Vanguard and Fidelity, two alternative funds from Credit Suisse and Blackrock, one high yield fund from Columbia Threadneedle, in addition to a small cash allocation.
In addition to providing the active funds for the portfolios, Oppenheimer also markets and distributes the models.
The range, which is called OppenheimerFunds in PMC ActivePassive portfolios, represents the third time Envestnet has teamed up with an asset manager in this way.
In 2016, it launched the American Funds/PMC Active Core and Active Income portfolios and in the third quarter of 2017 unveiled the Franklin Templeton ActivePassive portfolios.
'Investors and advisors are looking more for holistic solutions rather than product,’ Clift said. ‘So asset managers have to adjust their business model from just selling individual funds to looking at the best ways for them to distribute investment solutions.’
Envestnet PMC also offers a number of its own models that combine active and passive funds. Between these and those offered by the asset managers, there are 35 such portfolios, which account for $3.3 billion in assets as of April 30 this year.