A STRAIGHTFORWARD PROCESS
The PMC manager approval process uses an objective, transparent methodology consistent with industry fiduciary standards to provide a broad universe of investment managers across investment styles that offer an attractive risk/reward proposition.
The process consists of the following steps:
- A manager must successfully complete Envestnet’s Annual Compliance Due Diligence Questionnaire
- PMC’s quantitative risk/return model is used to select managers that rank in the top 40% of their overall peer group based on three years of historical performance data
PMC research analysts also work to provide additional insight across the approved universe by strategically performing additional analytics, including:
- Manager interviews to gain a clearer understanding of the investment process
- Holdings-based analysis using a factor model to calculate performance attribution
- Finding statistically significant alpha scores using a custom Returns-Based Style Analysis (RBSA) process
