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Managed Portfolios.
PCM Investment Portfolio Objectives:
To generate attractive and consistent returns irrespective of the ups and downs the global economy might go through (i.e. targeting attractive positive returns over any two-year period).
To preserve capital through resilient asset diversification and prudent investment management processes.
Managed to maximise total returns in a conservative manner for the Australian investor (also suitable for Superannuation or SMSF Portfolios).
Latest Quarterly Letter
About our Portfolios
Resilient Direct Security Investment Portfolios
Since inception (July 2013) we have generated near 'equity-like' absolute returns over the longer term with a capital preservation mandate and significantly less volatility when compared to equity markets. Targets consistently positive returns over any rolling two-year period, well above term deposit interest rates.
Genuinely Absolute Returns
Historically low correlation & low beta to the equity market... an ideal approach that may suit as a ‘whole of portfolio’ solution or alternatively that part of your portfolio that you just want managed conservatively (yet still adaptive to the economic seasons the world may be unfolding through).
Potentially Reduced Risk
Take less risk than a typical share market investment portfolio (or a 60/40 Stock & Bonds portfolio).
Significantly less volatility than the share market
Greater asset-class diversification
Returns generated whilst maintaining large cash holdings (30% allocation since inception)
No leverage, no derivatives, no exotic ETFs, no opacity.
Liquid & Simple
PCM’s Portfolios only invest in big, liquid, major exchange listed investments (currently ASX, NYSE, NASDAQ, XTER & TSX). Hence, it’s easy for you to convert some or all or your portfolio to cash in a timely manner if required).
Transparent
Full access to your investments at all times... totally transparent portfolios with the account in your name, whereby you can login online to view your holdings and their latest valuations 24 hours a day. SMA direct-securities structure.
Direct Securities
PCM does not touch client funds, as they are safeguarded by a platform with a responsible entity (regulated & licensed) and your investments are held transparently in your name by a Custodian (that is also regulated & licensed). Direct securities also enables portability.
Incentive Aligned
PCM designed these portfolios first and foremost as an investment solution for our own family and friends. As a result, our own family and friends will be invested just like you will be, meaning that at PCM we really do ‘eat our own cooking’.
Common Sense Approach
Simple Investment Methodology that is easy to explain to Advisors and Retail investors. Common-sense, Intuitive, Robust. This provides a nice change from the highly complicated and opaque investment management world.
Low Cost Active Management
Active common-sense investment management decisions directed by PCM to help make sure your investment portfolio is well-positioned throughout the different stages in the cycle across various asset classes that may include: Shares, Bonds, Cash, Precious Metals, Commodities, Currencies, REITS and the like. The 2014 Ernst & Young Global Hedge Fund Survey found that the average expense ratio for absolute return hedge funds was 2.04% (excluding performance fees). PCM’s base fees for investment management vary from between 0.88% and 1.40% depending on the strategy selection (excluding platform costs that may be an additional 0.06% to 0.44% depending on account size).
Low Turnover
PCM’s portfolios are low-touch (with a portfolio turnover of less than 23% p.a. since inception) meaning that the wholesale transaction costs are kept to a minimum. PCM receives no remuneration from transactions.
Liquidity Unconstrained
The investment strategy underpinning the PCM Portfolios is as close to a ‘liquidity unconstrained’ strategy as you are likely to get, meaning that the effective FUM limits of the strategy are likely measured in the $trillions.
Inflation and Currency Risk Aware
Some protection against currency and inflation risks
Platform Flexibility
Although PCM has its preferred platform providers, we are willing to work with and execute through other platforms (subject to review/approval).
Easy, Automated Admin
The platform-based SMA solution enables 24 hour online access with comprehensive reporting & review capabilities that will meet any taxation or client reporting requirement... your accountant will love you come tax time!
Superannuation Friendly
Whether you have as little as $100,000 in your personal superannuation account, or whether you have a substantial nest egg in a SMSF; PCM’s portfolios can be tailored to your circumstances. Alternatively, if you have money outside of super (like savings or a windfall from a property or business sale), PCM’s portfolios are highly useful to possibly help compound your savings at a suitable risk-adjusted return.
Informative
PCM are able to provide an abundant amount of investment research both in client-friendly formats and in communications more suited to a professional audience. The Investment Team are highly available for regular workshops and briefings.
PCM Investment Approach
Please see our June 2019 Quarterly Client Letter for an expanded discussion of our Portfolio Management Strategy & Approach.
Click Here for samples of our research.