Literature Category: Strategic

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A Tracking Error Primer
White Papers
Format: pdf
Publication Date: 01/14

For Advisor Use Only - Understanding the dimensions of risk is critical to both constructing a portfolio and evaluating managers. The goal of this research brief is to provide a deeper understanding of one particular dimension of portfolio risk: tracking error.

Active vs. Passive Active Management
White Papers
Format: pdf
Publication Date: 01/14

The goals of this research paper are several: first, to measure the statistical significance of every percentile in the cross-sectional (i.e., across a given Morningstar category) distribution of alphas; second, to use the statistical significance percentile data to designate particular Morningstar categories as candidates for either active or passive management; and third, to conduct predictive analysis along several dimensions to formulate an a priori decision rule for selecting funds with the highest probability of future outperformance.

ActivePassive Portfolios
Investment Solutions
Format: pdf
Publication Date: 04/15

What is the best approach to asset management: active or passive? We believe that neither strategy is "best"--but an appropriate blend of active and passive strategies can help to deliver the best of both worlds. Envestnet | PMC's ActivePassive Portfolios provide what we believe is an ideal combination of active and passive investment strategies, pairing actively managed mutual funds with low-cost, tax-efficient index funds.

Guide to Quantitative Portfolios
Investment Solutions
Format: pdf
Publication Date: 06/15

Quantitative Portfolios (“QPs”) are separately managed accounts designed and constructed to offer several primary attributes, including: cost-efficient exposure to beta, tax-efficiency, and the ability to be customized. At their core, QPs are passively managed, and are structured to provide a pre-tax return similar to a broad-based benchmark index at a cost that is competitive with ETFs. We attempt to enhance after-tax return through active tax management. As their name suggests, the portfolios are constructed quantitatively, with risk assessment and tax management considerations being the sole criteria.

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