Envestnet | PMC Curriculum Helps Advisors Explore the 'What,' 'Why' & 'How' of Impact Investing

PMC Joins Forces with The Investment Integration Project to Empower Advisors to Address Investor Demand for Impact Investing

CHICAGO, Feb. 18, 2021 /PRNewswire/ -- Envestnet, Inc. (NYSE: ENV) announces that Envestnet | PMC (PMC) has published a series of comprehensive educational resources about impact investing for financial advisors. These educational materials on impact investing trends, strategies, and products—and how advisors can begin discussions about them with clients—are available on the PMC website: https://www.investpmc.com/impact.

"The market is sending a clear signal that investors want to invest with impact. Our goal is to make sure advisors have the knowledge and confidence to build values-aligned portfolios," said Brett Wayman, Vice President of Impact Investing at Envestnet | PMC. "Our in-depth educational program helps advisors understand why they should consider impact investing in their practices, defines the various approaches they can take, and gives advisors a path towards discussing impact with their clients."   

PMC's impact educational materials were prepared in partnership with The Investment Integration Project (TIIP), an organization dedicated to advancing sustainable investment strategies for managing systemic risks and solving systemic problems, such as climate change and income inequality. The curriculum consists of three in-depth guides for advisors:

  • "What Is Impact Investing?"—Disentangling the complex terminology used to describe impact investing, and clarifying the fundamental concepts underlying the terminology.
  • "Why Should Financial Advisors Care About Impact Investing?"—Confronting common myths about impact investing that might be preventing advisors from embracing it.
  • "How Can Financial Advisors Apply Impact Investing In Their Practice?"—Offering practical recommendations for how advisors can talk with clients about impact investing, and using hypothetical "real world" scenarios where advisors can address clients' impact investing goals, including a concise "4 Step Process for Discussing Impact Investing with Clients."

As this segment of the market continues to grow, PMC will develop additional content—such as interactive tools, videos, blog posts, and infographics—to help advisors stay up-to-date on how to help their clients incorporate impact investment strategies and products into their portfolios.

"The systemic application of big-picture environmental and social considerations to security selection and portfolio construction can actually enhance—not harm—long-term investment opportunities," said William Burckart, President of TIIP and Co-Author of 21st Century Investing. "Envestnet shares our commitment to teaching more investors and financial professionals about the potential benefits of investing with impact, and giving them the tools to get started. In addition, for those who are already on this path, these materials can help them go even further."

The number of sustainable funds available to U.S. investors increased to 392 in 2020, up 30% from 2019, according to Morningstar. This segment has experienced a nearly fourfold increase over the past 10 years, with significant growth beginning in 2015. Morningstar also reported that sustainable funds attracted a record $51.1 billion in net flows in 2020, more than twice the previous record set in 2019—and sustainable fund flows accounted for nearly one-quarter of overall fund flows in the U.S. last year.

Activity on the Envestnet platform confirms this trend, with investments in impact and environmental, social, and governance (ESG) strategies up 98% in 2019 and up 45% through September 30, 2020. This represents the fastest-growing area of Envestnet's managed money universe. As of September 30, 2020, the Envestnet platform included $17.6 billion in ESG assets under management or administration in over 290,000 client accounts, overseen by over 15,900 advisors.

"Being able to knowledgeably, and proactively, discuss impact investing with clients is a key differentiator for advisors in today's marketplace," said Dana D'Auria, CFA, Co-Chief Investment Officer of Envestnet. "We continue to strengthen the spectrum of impact solutions and strategies available through our financial wellness network—and these offerings, combined with our educational materials and data-driven intelligence, can help advisors make the best-informed impact recommendations for their clients."

About Envestnet

Envestnet, Inc. (NYSE: ENV) is transforming the way financial advice and wellness are delivered. Our mission is to empower advisors and financial service providers with innovative technology, solutions, and intelligence to make financial wellness a reality for everyone. Over 105,000 advisors across more than 5,100 companies—including 17 of the 20 largest U.S. banks, 47 of the 50 largest wealth management and brokerage firms, over 500 of the largest RIAs, and hundreds of FinTech companies—leverage the Envestnet platform to grow their businesses and client relationships.

For more information on Envestnet | PMC, please visit www.investpmc.com.

Nothing contained in this presentation 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.

Media Contact:

Dana Taormina
JConnelly for Envestnet


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SOURCE Envestnet, Inc.