Federated Hermes and Envestnet Launch Suite of Model ESG-Integrated Portfolios
Global investment manager Federated Hermes and investment advisory services company Envestnet | PMC (PMC) announced today the launch of the Federated Hermes PMC Impact Portfolios, a new suite of model portfolios offering access to ESG-integrated investment strategies, which can be customized to fit different tolerances for risk.
According to the companies, the diversified model portfolios are aligned with target allocation strategies across a seven-point risk spectrum, and are constructed using PMC’s proprietary capital markets assumptions and multi-factor due diligence process to evaluate and identify high-conviction impact strategies. PMC’s due diligence process includes a four-factor impact analysis focusing on the incorporation of impact investing in managers’ investment policies, firm structures, and reports, as well as managers’ commitment to active ownership and engagement with companies on ESG agendas.
Kiley Miller, Associate Portfolio Manager at Envestnet | PMC, said:
“Our institutional-level due diligence, research, and portfolio construction—combined with the well-honed approach to stewardship developed by the EOS team at Federated Hermes—can provide advisors with flexible, personalized solutions for obtaining risk-managed ESG exposure. We look forward to working with Federated Hermes to enable more investors to harness impact investing strategies to align their values with their portfolios, while simultaneously moving closer to financial wellness.”
Paul Uhlman, President of Federated Securities Corp., said:
“As investor interest in ESG-integrated strategies continues to rise, it is vital to provide access to these fast-growing areas of the marketplace while also addressing demand for strong risk-adjusted returns. The Federated PMC Impact Portfolios combine the ESG-integrated portfolio management and engagement framework developed by the EOS team at Federated Hermes with PMC’s asset allocation and manager research capabilities. Working together, we can deliver exposure to high-conviction impact strategies regardless of where investors fall on the risk-tolerance spectrum—making this offering is a truly groundbreaking step on the road to building a more sustainable society through investment.”