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Research and Whitepapers Correlation Retreats: Active vs. Passive Investment Strategies, July 2011 Envestnet's 2011 analysis of active and passive management encompassed in excess of 32,000 mutual funds over the 30-year period ending February 28, 2011. The study seeks to identify which categories should be biased towards active vs. passive management and the percentage of assets that should be allocated to active management. Additionally, Envestnet examined and analyzed the space from a new angle: active manager performance during market environments where correlation is persistently above or below the long-term average. Correlation Coefficient is a measure of the interdependence of two random variables that ranges in value from -1 to +1, indicating perfect negative correlation at -1, absence of correlation at zero and perfect positive correlation at +1.
Mutual fund investing involves risk. Principal loss is possible. Investment in the ActivePassive Funds may include risks associated with non-diversification, foreign securities, emerging markets, small and mid cap companies, ETF's, REITS's, debt securities, high yield securities, and mortgage backed securities. Please refer to the prospectus for the risks specific to each fund. The ActivePassive Funds are distributed by Quasar Distributors, LLC.
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