Alternative Mutual Fund Lists – Approved and Watch List Updated for Q2 2020
The alternative mutual fund approved and watch lists have been updated. CLICK HERE TO VIEW.
If you have not already done so, reps must complete an education requirement before offering the alternative mutual funds to your clients. Please see Field Notice 2019-04 for details. If you have questions about the alternative mutual fund due diligence process, please contact ESI Business Development.
PMC Research Note 6/30/2020 – Watch List Addition: Brinker Capital and CLS Investments Approved – Qualitative Strategist Portfolios
| Summary |
| Envestnet | PMC is placing all of the Approved–Qualitative strategies from Brinker Capital (“Brinker”) and CLS Investments (“CLS”) on “Watch” effectively immediately. PMC recently learned that Brinker Capital (“Brinker”) has entered into a merger agreement with Orion Advisor Solutions (“Orion”), with the deal expecting to close during the end of Q3 or beginning of Q4 2020. Rationale With the support from private equity firms Genstar Capital and TA Associates, Orion and Brinker are merging to create a combined technology and TAMP provider. As part of the agreement, Brinker’s Investment Management business and CLS Investments (Orion’s ETF Strategist division) will be combined into one unit, “Brinker Capital Investments.” Brinker’s current CEO, Noreen Beaman, will serve as President and lead the investment management arm. At the same time, Orion’s CEO, Eric Clarke, will manage the technology side of the combined firm. The deal will provide Brinker with additional capital for its growth, broaden the range of investment products and services, expand distribution, and enhance technology and services. Orion benefits by being able to provide advisors with access to differentiated solutions and expertise through Brinker’s comprehensive high net worth offering, Behavioral Innovation Lab, and proprietary investment strategies. Currently, there are no plans for any changes to Brinker’s or CLS’ investment teams, investment process, or investment strategies. Although the CLS brand will go away and all of the strategies will be rebranded under Brinker Capital Investments. Given the uncertainty around potential departure of key personnel and integration of the two firms, Envestnet | PMC will be placing all strategies managed by Brinker and CLS on “Watch.”. We will be closely monitoring the organizations to ensure that the acquisition has no significant impact on the culture, investment teams, or investment processes. |
Envestnet PMC – Changes to ESI Portfolios July 2020
| Based on our recent 2020 Global Market Analysis, we are making adjustments to our model portfolios in an effort to improve their risk-return profiles in the current market environment. Click below to review our recommended changes. Review Changes – The Investment Proposal system is being updated with the new models, and trading is expected to begin on July 20th, 2020. – To accomplish the model update the accounts will be placed on trade hold from July 10th through market close on July 17th. The trade holds will be removed over that weekend for trading to occur on Monday, July 20th. If the need to remove the trade hold does arise (raise cash, goal modification, etc.) please contact your client service team. – Accounts opened after July 10th, 2020 will be invested in the updated models. – Existing accounts with activity after July 10th, 2020 (such as distributions and additional deposits) will be invested in the new models at the time of activity. Please refer to the 2020 Global Market Analysis Summary for guidance on these adjustments. For the detailed analysis that focuses on relative valuations, historical returns, and current macro-economic conditions, please refer to the full document. For questions please contact your Regional Advisory Sales Team. |
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