Page 28 - Investment Advisor June 2021

ENVESTNET AWARDS

By Ginger Szala

In a Year Like No Other, Active Managers

Stayed Agile

The 17th-annual Asset Manager and Strategist of the Year Awards

will recognize active managers in seven different categories.

hile 2020 will always be worthy of consideration by the judges.
known as the Year of the “We want to make sure that people
W COVID-19 Pandemic, it also understand that we’re not just basing these
will be remembered for its market highs, awards on performance, or just last year’s
lows and new highs, as well its near-zero performance,” Clift said. “We’re really
interest rates. focusing on consistency over the years —
Last year, active managers had to be not just selecting from a hot year. We’re
“nimble,” said Tim Clift, chief invest- looking at a lot of metrics, including man-
ment strategist for Envestnet | PMC. At aging risk, the people and the process.”
the same time, though, portfolio manag- The $200 million asset minimum pro-
ers nominated as finalists for the 17th vides a “proof of concept” that there’s
annual Asset Manager and Strategist both demand and success with the port-
of the Year Awards faced unique issues folio, he explained. “We want [a pro-
and conditions. gram] that’s been around and has gained
The yearly awards, presented by assets, but we’re looking at assets in a
Envestnet | PMC and Investment Advisor, what was happening and thrive in the number of ways.”
recognize active managers in seven dif- situation,” he said. The analysts and judging committee
ferent categories who have beaten their For example, technology stocks soared, also “like to see growth, a steady accu-
benchmarks, shown solid performance while travel and entertainment holdings mulation and a lot of underlying hold-
in general over time and are the best in crashed. “There were multiple opportu- ers, rather than just a few,” Clift added.
their respective asset class. nities throughout the year for portfolio “That makes it much more robust and
The 2021 finalists are listed in the managers to really shift based on market reduces concerns about outflows from a
accompanying sidebar, and the winners conditions, and it created a much more single investor.”
are set to be showcased in the July/ interesting environment for managers,” One area that has gained more atten-
August issue of Investment Advisor. explained the investment strategist. tion in the past two years has been impact
“The markets moved very swiftly,” or environmental, social and governance
Clift said. “We started out strong until THIS YEAR’S FINALISTS investing, he says. The awards program
COVID hit at the end of February and The finalists for the 2021 awards does have an impact category (which it
into early March. Then the market have been culled from thousands on added in 2016), and several of finalists in
dropped like a rock, but it also rebound- the Envestnet platform by a group of other categories also have ESG investing
ed very quickly. If you were to buy and analysts, rated by category and then woven into their strategies.
hold, you probably did OK. But if they reviewed by the judging committee. “There’s more activism from share-
were nimble, saw the warning signs and To be considered for an award, the port- holders, but the industry has been feel-
made some adjustments, [these] active folio managers need to have at least $200 ing pressure,” especially on climate
managers had an opportunity to shine in million in assets and three years of experi- change, Clift said. “Governance of com-
that environment,” he explained. ence. They also need to be open to new panies and diversity and inclusion [has
It also was a year in which “stock investments on the Envestnet platform. been] really prominent during this past
picking became very important,” Clift Those on the most-recent list of final- year. Everybody’s shining a bright light
pointed out. Index managers own every- ists have had stellar years of performance, on companies to make sure they are
thing, “but an active manager could see but there’s a lot more that makes them doing the right thing.

26 INVESTMENT ADVISOR JUNE 2021 | ThinkAdvisor.com