Genesis Series: PMC American Funds Active Core Portfolio
1
Genesis Series: PMC American Funds Active Core Portfolio - Conservative Growth Product Description Combining the legacy of investment management at American Funds with the research, portfolio
Performance: Growth of $100
Performance Highlights
(%)
Total Annualized Return for Periods Ending 06/30/17
consulting and management expertise of Envestnet |
$ Value
PMC, the Active Core Portfolios are constructed around the philosophy of selecting a core group of
% Returns
112
active managers to achieve potentially long-term
8.0
results. These PMC Managed portfolios are suitable
110
7.0
for a variety of investor objectives and risk profiles across the efficient frontier. The American Funds PMC
6.0
108
Active Core Portfolios are built with an active
5.0
management core of American Funds and other
105
active managers that pass strict and regular scrutiny by PMC. The American Funds PMC Active Core
4.0 3.0
102
Portfolios emphasize American Funds options that
2.0
are PMC selected active managers that have both
100
higher manager ownership and lower expense ratios. Active funds that possess both characteristics have
1.0
2012
2013
2014
2015
2016
2017
0.0
tended to outpace market indexes and the broader
MRQ
YTD
1 Yr
3 Yr
5 Yr
ITD
universe of active managers over time, according to American Funds Research*. The allocation Envestnet | PMC has recommended for you has moderate risk and is growth oriented. It reflects both your risk profile and your time horizon.
Product (Gross)
6.40
6.20
Benchmark
6.16
5.70
Relative Returns
0.24
0.49
Risk Benchmark
5.63
6.04
Product (Gross)
2.60
6.20
8.20
n/a
n/a
4.50
Benchmark
2.34
5.70
7.84
n/a
n/a
3.99
Relative Returns
0.26
0.49
0.36
n/a
n/a
0.50
Risk Benchmark
2.51
6.04
8.36
n/a
n/a
4.63
Your risk profile and time horizon suggest that your risk should be somewhat reduced during a down cycle through diversification with bonds. The foundation of Envestnet | PMC investment process is
Quick Facts ( as of Jun 30, 2017)
asset allocation - the amount of a portfolio allocated
Style Classification :
Asset Allocated
between the broad asset classes of stocks, bonds and
Benchmark :
Blend 1
cash. A diversified portfolio can help to mitigate the
Risk Benchmark 2 :
Blend 3
ups and downs of market performance, reduce risk,
Risk Rating :
Current Income
eliminate dependence on any single type of
Risk Score :
37 (out of 100)
investment and potentially enhance portfolio returns.
Product AUM(MM) :
n/a
In addition to diversification by asset class, the
Portfolio Inception :
January 2016
portfolio's stock allocation is further diversified by
Current # Holdings :
14
style and market capitalization. The stock allocation
Avg. Annual Turnover :
n/a
may include exposure to U.S. and international companies. The bond allocation has further Continued on Page 3 The performance quoted represents past performance. Past performance is not indicative of future results. Performance and performance related statistics presented are as of Jun 30, 2017. 4 The value of an investment and the return on invested capital will fluctuate over time and, when sold or redeemed, may be worth less than its original cost. Performance is shown gross of fees, except for the internal expenses of any investment products and does not reflect the effect of income taxes on the investment returns. Actual performance results will be reduced by fees including, but not limited to, investment management fees and other costs such as custodial, reporting, evaluation and advisory services. Performance reflects the reinvestment of dividends, income and capital appreciation. For more information on fees, see the Notes section. 5 Benchmark indices reflect the reinvestment of dividends and income and not deductions for fees, expenses or taxes. Indices are unmanaged and not available for direct investment. 6 The information is based on data received from the investment strategy manager and/or other sources, such as reporting service providers, but has not been independently verified. All performance results are composite returns as of the date noted showing total returns that are calculated assuming reinvestment of dividends, income and capital appreciation.
2
Genesis Series: PMC American Funds Active Core Portfolio - Conservative Growth Portfolio Characteristics 7
Asset Allocation
( Actual investor holdings will vary ) Average Market Cap (MM)
Style (top allocations) —
Median Market Cap (MM)
Domestic Equity
● Large-Cap Growth ● Large-Cap Value ● Small-Cap Value
65,530
Adjusted Price/Earnings Ratio
n/a
Price/Book Ratio
n/a
Return On Equity (1yr)
n/a
EPS Growth-Past 5 yrs
6.45%
Debt to Total Capital
International Equity
● Int'l Developed Mkts ● Int'l Emerging Mkts ● Global Equity ● Foreign Large Cap Growth
n/a
Current Yield (%)
1.99 8
Weighted Avg Gross Expense Ratio 9
0.51%
Weighted Avg Net Expense Ratio 10
0.50%
Fixed Income
● Bank Loan ● Intermediate Bond ● Short Bond ● High Yield ● International Bond ● Cash Other
● Commodity Equity Sector Distribution 25.0 7.9
Fin. Services
15.1
Industrials
11.9
Technology 11.5
Basic Materials
4.5
Comm. Svcs.
4.3
Healthcare Real Estate Cons. Defense Utilities
Security
12.50 2.00 18.00 8.00 3.00 2.00 5.00 54.00 6.00 30.00 4.00 4.00 8.00 2.00 2.00 2.00
%
Security
%
Baird Aggregate Bond Inst
18.00
American Funds New World F2
3.00
American Funds American Mutual F2
12.50
Credit Suisse Commodity Return
2.00
American Funds Bond Fund of Amer
12.00
Strat I
F2 18.2
Cons. Cyclical
11.50
Holdings
0.0 % Energy
% 26.00
American Funds AMCAP F2 American Funds Capital World Bond
11.50
American Funds SMALLCAP World F2
2.00
Northern Small Cap Value
2.00
8.00
F2
13.1
American Funds Intl Gr and Inc F2
8.00
T. Rowe Price Instl Floating Rate
6.00
American Funds Europacific Growth
5.00
F2
1.7 7.8
Columbia Income Opportunities R5
4.00
Janus Henderson Short-Term Bond I
4.00
4.0
The data presented is based on a snapshot of the holdings in the portfolio as of Sep 23, 2017 and may change at any time. Other data is calculated based on the reported holdings and data received from third party data sources, as of the most recent date provided to Envestnet. The information is believed to be accurate, however Envestnet cannot guarantee the accuracy, completeness, or timeliness of the data as it has not been independently verified. Specific securities identified and described do not represent all of the securities purchased, sold or recommended for advisory clients, and may not reflect any restriction a client may have placed on a portfolio. The portfolio holdings may vary depending on strategy employed by the investment manager. Holdings information should not be considered a recommendation to buy or sell a particular security. It should not be assumed that any investments in securities identified and described were or will be profitable, and diversification does not ensure a profit or protect against loss.
3
Genesis Series: PMC American Funds Active Core Portfolio - Conservative Growth Continued from Page 1
protect against a loss.
diversification as well, and may feature bonds issued by U.S. or foreign governments and agencies, U.S.
*Source: Capital Group, based on Morningstar
state and local municipalities, and/or U.S. and foreign
data
corporations. Portfolios may also feature allocations to alternative investments. Using both quantitative and qualitative analysis to identify appropriate securities in each category, your investment team follows a disciplined research process to select bestof-breed investments for the portfolio. Similar criteria are used to monitor investments once they have been selected for portfolio inclusion. If an investment becomes inappropriate for your portfolio, action may be taken. Diversification does not ensure a profit or
1 Blend represents a benchmark composed of 38% Bloomberg Barclays Capital Intermediate U.S. Government/Credit TR, 28% Russell 3000 TR, 15% MSCI All Country World Index World(X-US)(USD)(TRN), 11% Bloomberg Barclays Capital Global
Aggregate Bond TR, 3% Bloomberg Commodity TR, 3% Bloomberg Barclays Capital U.S. Corporate High Yield TR, 2% Citigroup Treasury Bill - 3 Month 2 The secondary risk benchmark is shown for informational purposes only. It is based on the overall risk score of the product only. 3 35.5% Bloomberg Barclays Capital Intermediate U.S. Government/Credit TR, 29% Russell 1000 TR, 12% MSCI EAFE GR, 11.5% Bloomberg Barclays Capital Global Aggregate Bond TR, 7% Bloomberg Barclays Capital 1-3 Govt/Credit Bond TR, 3%
Russell 2000 TR, 2% MSCI EM TRG USD 4 Note: Performance Inception Jan 1, 2014
Performance returns & statistics are calculated using quarterly returns data as of date noted and is the most recent data made available by the asset manager. Unless otherwise noted, portfolio performance returns are provided by a third-party data provider or the asset manager directly. 5 Actual fees will vary depending on, among other things, the applicable fee schedule, the time period, investment performance and account size. For example, if $100,000 were invested and experienced a 10% annual return compounded monthly for
10 years, its ending value, without giving effect to the deduction of advisory fees, would be $270,704 with annualized compounded return of 10.47%. If an advisory fee of 0.95% of the average market value of the account were deducted monthly for the 10-year period, the annualized compounded return would be 9.43% and the ending dollar value would be $246,355. For a description of all fees, costs and expenses, please refer to your financial advisor's Disclosure Brochure. Past performance is not indicative of future results. 6 Reported benchmarks are not intended as direct comparisons to the performance of the portfolio. Instead, they are intended to represent the performance of certain sectors of the overall securities market (e.g. equities, bonds, etc.). Respectively, the
volatility and performance of the reported benchmark may be greater than or less than the volatility and performance of the investment portfolio. 7 2017 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither
Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Morningstar, Inc. is an independent organization that is not affiliated with Envestnet or your investment advisor. Past performance is no guarantee of future results. 8 Yield is an indication of the current estimated dividends and interest vs. the current market value of the holdings. The yield represents the current amount of income that is being generated from the portfolio without liquidating the principal or
capital gains on the portfolio. However, the yield will fluctuate daily and current or past performance is not a guarantee of future results 9 The weighted average of the gross expense ratios of the funds and/or ETFs used in the portfolio. 10 The weighted average of the net expense ratios of the funds and/or ETFs used in the portfolio. The fund net expense ratios reflect fee waivers by the underlying fund management companies, which may not be permanent.
For Use in a One-On-One Presentation to Advisory Client Only
Genesis Series: PMC American Funds Active Core Portfolio - Conservative Growth Product Description Combining the legacy of investment management at American Funds with the research, portfolio
Performance: Growth of $100
Performance Highlights
(%)
Total Annualized Return for Periods Ending 06/30/17
consulting and management expertise of Envestnet |
$ Value
PMC, the Active Core Portfolios are constructed around the philosophy of selecting a core group of
% Returns
112
active managers to achieve potentially long-term
8.0
results. These PMC Managed portfolios are suitable
110
7.0
for a variety of investor objectives and risk profiles across the efficient frontier. The American Funds PMC
6.0
108
Active Core Portfolios are built with an active
5.0
management core of American Funds and other
105
active managers that pass strict and regular scrutiny by PMC. The American Funds PMC Active Core
4.0 3.0
102
Portfolios emphasize American Funds options that
2.0
are PMC selected active managers that have both
100
higher manager ownership and lower expense ratios. Active funds that possess both characteristics have
1.0
2012
2013
2014
2015
2016
2017
0.0
tended to outpace market indexes and the broader
MRQ
YTD
1 Yr
3 Yr
5 Yr
ITD
universe of active managers over time, according to American Funds Research*. The allocation Envestnet | PMC has recommended for you has moderate risk and is growth oriented. It reflects both your risk profile and your time horizon.
Product (Gross)
6.40
6.20
Benchmark
6.16
5.70
Relative Returns
0.24
0.49
Risk Benchmark
5.63
6.04
Product (Gross)
2.60
6.20
8.20
n/a
n/a
4.50
Benchmark
2.34
5.70
7.84
n/a
n/a
3.99
Relative Returns
0.26
0.49
0.36
n/a
n/a
0.50
Risk Benchmark
2.51
6.04
8.36
n/a
n/a
4.63
Your risk profile and time horizon suggest that your risk should be somewhat reduced during a down cycle through diversification with bonds. The foundation of Envestnet | PMC investment process is
Quick Facts ( as of Jun 30, 2017)
asset allocation - the amount of a portfolio allocated
Style Classification :
Asset Allocated
between the broad asset classes of stocks, bonds and
Benchmark :
Blend 1
cash. A diversified portfolio can help to mitigate the
Risk Benchmark 2 :
Blend 3
ups and downs of market performance, reduce risk,
Risk Rating :
Current Income
eliminate dependence on any single type of
Risk Score :
37 (out of 100)
investment and potentially enhance portfolio returns.
Product AUM(MM) :
n/a
In addition to diversification by asset class, the
Portfolio Inception :
January 2016
portfolio's stock allocation is further diversified by
Current # Holdings :
14
style and market capitalization. The stock allocation
Avg. Annual Turnover :
n/a
may include exposure to U.S. and international companies. The bond allocation has further Continued on Page 3 The performance quoted represents past performance. Past performance is not indicative of future results. Performance and performance related statistics presented are as of Jun 30, 2017. 4 The value of an investment and the return on invested capital will fluctuate over time and, when sold or redeemed, may be worth less than its original cost. Performance is shown gross of fees, except for the internal expenses of any investment products and does not reflect the effect of income taxes on the investment returns. Actual performance results will be reduced by fees including, but not limited to, investment management fees and other costs such as custodial, reporting, evaluation and advisory services. Performance reflects the reinvestment of dividends, income and capital appreciation. For more information on fees, see the Notes section. 5 Benchmark indices reflect the reinvestment of dividends and income and not deductions for fees, expenses or taxes. Indices are unmanaged and not available for direct investment. 6 The information is based on data received from the investment strategy manager and/or other sources, such as reporting service providers, but has not been independently verified. All performance results are composite returns as of the date noted showing total returns that are calculated assuming reinvestment of dividends, income and capital appreciation.
2
Genesis Series: PMC American Funds Active Core Portfolio - Conservative Growth Portfolio Characteristics 7
Asset Allocation
( Actual investor holdings will vary ) Average Market Cap (MM)
Style (top allocations) —
Median Market Cap (MM)
Domestic Equity
● Large-Cap Growth ● Large-Cap Value ● Small-Cap Value
65,530
Adjusted Price/Earnings Ratio
n/a
Price/Book Ratio
n/a
Return On Equity (1yr)
n/a
EPS Growth-Past 5 yrs
6.45%
Debt to Total Capital
International Equity
● Int'l Developed Mkts ● Int'l Emerging Mkts ● Global Equity ● Foreign Large Cap Growth
n/a
Current Yield (%)
1.99 8
Weighted Avg Gross Expense Ratio 9
0.51%
Weighted Avg Net Expense Ratio 10
0.50%
Fixed Income
● Bank Loan ● Intermediate Bond ● Short Bond ● High Yield ● International Bond ● Cash Other
● Commodity Equity Sector Distribution 25.0 7.9
Fin. Services
15.1
Industrials
11.9
Technology 11.5
Basic Materials
4.5
Comm. Svcs.
4.3
Healthcare Real Estate Cons. Defense Utilities
Security
12.50 2.00 18.00 8.00 3.00 2.00 5.00 54.00 6.00 30.00 4.00 4.00 8.00 2.00 2.00 2.00
%
Security
%
Baird Aggregate Bond Inst
18.00
American Funds New World F2
3.00
American Funds American Mutual F2
12.50
Credit Suisse Commodity Return
2.00
American Funds Bond Fund of Amer
12.00
Strat I
F2 18.2
Cons. Cyclical
11.50
Holdings
0.0 % Energy
% 26.00
American Funds AMCAP F2 American Funds Capital World Bond
11.50
American Funds SMALLCAP World F2
2.00
Northern Small Cap Value
2.00
8.00
F2
13.1
American Funds Intl Gr and Inc F2
8.00
T. Rowe Price Instl Floating Rate
6.00
American Funds Europacific Growth
5.00
F2
1.7 7.8
Columbia Income Opportunities R5
4.00
Janus Henderson Short-Term Bond I
4.00
4.0
The data presented is based on a snapshot of the holdings in the portfolio as of Sep 23, 2017 and may change at any time. Other data is calculated based on the reported holdings and data received from third party data sources, as of the most recent date provided to Envestnet. The information is believed to be accurate, however Envestnet cannot guarantee the accuracy, completeness, or timeliness of the data as it has not been independently verified. Specific securities identified and described do not represent all of the securities purchased, sold or recommended for advisory clients, and may not reflect any restriction a client may have placed on a portfolio. The portfolio holdings may vary depending on strategy employed by the investment manager. Holdings information should not be considered a recommendation to buy or sell a particular security. It should not be assumed that any investments in securities identified and described were or will be profitable, and diversification does not ensure a profit or protect against loss.
3
Genesis Series: PMC American Funds Active Core Portfolio - Conservative Growth Continued from Page 1
protect against a loss.
diversification as well, and may feature bonds issued by U.S. or foreign governments and agencies, U.S.
*Source: Capital Group, based on Morningstar
state and local municipalities, and/or U.S. and foreign
data
corporations. Portfolios may also feature allocations to alternative investments. Using both quantitative and qualitative analysis to identify appropriate securities in each category, your investment team follows a disciplined research process to select bestof-breed investments for the portfolio. Similar criteria are used to monitor investments once they have been selected for portfolio inclusion. If an investment becomes inappropriate for your portfolio, action may be taken. Diversification does not ensure a profit or
1 Blend represents a benchmark composed of 38% Bloomberg Barclays Capital Intermediate U.S. Government/Credit TR, 28% Russell 3000 TR, 15% MSCI All Country World Index World(X-US)(USD)(TRN), 11% Bloomberg Barclays Capital Global
Aggregate Bond TR, 3% Bloomberg Commodity TR, 3% Bloomberg Barclays Capital U.S. Corporate High Yield TR, 2% Citigroup Treasury Bill - 3 Month 2 The secondary risk benchmark is shown for informational purposes only. It is based on the overall risk score of the product only. 3 35.5% Bloomberg Barclays Capital Intermediate U.S. Government/Credit TR, 29% Russell 1000 TR, 12% MSCI EAFE GR, 11.5% Bloomberg Barclays Capital Global Aggregate Bond TR, 7% Bloomberg Barclays Capital 1-3 Govt/Credit Bond TR, 3%
Russell 2000 TR, 2% MSCI EM TRG USD 4 Note: Performance Inception Jan 1, 2014
Performance returns & statistics are calculated using quarterly returns data as of date noted and is the most recent data made available by the asset manager. Unless otherwise noted, portfolio performance returns are provided by a third-party data provider or the asset manager directly. 5 Actual fees will vary depending on, among other things, the applicable fee schedule, the time period, investment performance and account size. For example, if $100,000 were invested and experienced a 10% annual return compounded monthly for
10 years, its ending value, without giving effect to the deduction of advisory fees, would be $270,704 with annualized compounded return of 10.47%. If an advisory fee of 0.95% of the average market value of the account were deducted monthly for the 10-year period, the annualized compounded return would be 9.43% and the ending dollar value would be $246,355. For a description of all fees, costs and expenses, please refer to your financial advisor's Disclosure Brochure. Past performance is not indicative of future results. 6 Reported benchmarks are not intended as direct comparisons to the performance of the portfolio. Instead, they are intended to represent the performance of certain sectors of the overall securities market (e.g. equities, bonds, etc.). Respectively, the
volatility and performance of the reported benchmark may be greater than or less than the volatility and performance of the investment portfolio. 7 2017 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither
Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Morningstar, Inc. is an independent organization that is not affiliated with Envestnet or your investment advisor. Past performance is no guarantee of future results. 8 Yield is an indication of the current estimated dividends and interest vs. the current market value of the holdings. The yield represents the current amount of income that is being generated from the portfolio without liquidating the principal or
capital gains on the portfolio. However, the yield will fluctuate daily and current or past performance is not a guarantee of future results 9 The weighted average of the gross expense ratios of the funds and/or ETFs used in the portfolio. 10 The weighted average of the net expense ratios of the funds and/or ETFs used in the portfolio. The fund net expense ratios reflect fee waivers by the underlying fund management companies, which may not be permanent.
For Use in a One-On-One Presentation to Advisory Client Only
