Portfolio Management Consultants (PMC), the investment arm of Envestnet, launched a new investment vehicle–the PMC Tactical ETF Portfolio Series–designed to compensate for difficult markets, according to PMC.
Comprising seven portfolio models, the PMC Tactical ETF Portfolios are “risk-based tactical models designed to deliver enhanced returns with strict risk controls.” The five Risk-Based Portfolios are diversified with a ranging risk tolerance. The other two portfolios–the Sector Rotation Portfolio and Country Rotation Portfolio–will use a rotation strategy by sector or by country that tactically invest in U.S. industry sectors and in international markets, respectively. Within the Risk-Based Portfolios are two risk/return categories: Core and Total Return. Core portfolios aim to “actively monitor and quantify the risk-adjusted expected returns of equities relative to fixed income and alter allocations accordingly.” Total Return portfolios will additionally “leverage ETFs where available and seek to increase total returns by increasing allocations to [other] asset classes, currently high-yield bonds.”
“Our Tactical ETF Portfolios employ a quantitatively driven, tactical asset allocation approach, making tactical shifts in allocations to capitalize on performance expectations of the various investment options,” said Gerald Buetow, managing director of PMC and the senior portfolio manager for the Tactical ETF. “Thus far, the models have generated above-benchmark returns.”