Doesn’t everyone do this?
No. The conventional industry approach uses what is referred to as the ‘buy & hold’ strategy; i.e. you simply buy shares (or an asset class) and hold them regardless of whether the conditions are good or bad for the performance of those shares (or the asset class in question) – this can make retirement planning & other strategic planning particularly uncertain.
How do we do this? [Managed Portfolios…]
COMMON-SENSE INVESTMENT STRATEGY:
We utilise simple but robust low-frequency trend-following techniques in addition to monitoring closely the economic seasons we are in to systematically determine how much of our diversified portfolios should be in equities, bonds, property, commodities and cash at any point in time.
TRANSPARENT & SECURE:
When we manage a portion of your investments in a model portfolio, we don’t actually touch your money. The direct investments and Exchange Traded Funds that comprise your diversified investment portfolios are held independently to us in your account by one of the oldest & strongest Custodians in Australia (Sandhurst Trustees, founded over 125 years ago in 1888 and owned by the Bendigo & Adelaide Bank). A Custodian is a specialised financial institution that is responsible for safeguarding an individual’s financial assets.
YOUR MONEY IS ALWAYS AVAILABLE [with only a few days notice required...]:
We believe that a client should always have full-transparency over their money & assets, and that the client should have the peace of mind in knowing that their investment portfolios are liquid (meaning that if you wanted to, you could convert all of your investment portfolio assets back into cash within a couple of days under most normal market conditions).
What else makes us unique?
We have sought to structure our fixed ongoing costs at a conservative level relative to comparative industry norms in order to better align ourselves with client outcomes through the use of a performance fee. A performance fee is where we charge a small percentage (%) of the actual profits your investment portfolio makes each year as a part of our fee. This means that the actual performance of your portfolio over time is a significant determinant of how we get paid.
Each time we make a major change to the composition of these portfolios we make available to clients informative & educational research to help them understand in a language they understand why such portfolio actions were taken. This both keeps them well informed and at times even places them ahead of the curve with incisive insight into the unfolding of domestic & global investment markets. PCM receives no transaction fees or brokerage for changes in the managed portfolios so you can be assured that any changes made are done so exclusively with your performance outcomes in mind.
HIGH LEVELS OF ACCOUNTABILITY:
Although Prerequisite Capital Management’s Corporate Authorised Representative status of AIW Dealer Services Pty Ltd AFSL No. 414256 does not require an External Risk Manager, we have sought to proactively engage one over & above the licensing requirements in order to provide an additional layer of accountability & highly-experienced scrutiny to PCM’s investment management activities. The External Risk Manager that has been appointed has over 40 years’ experience in portfolio management & financial services and is one of the most highly regarded asset consultants in Australia. This external appointment helps to ensure our Portfolios operate under some of the highest levels of transparency, scrutiny & excellence.
What if you already have a financial advisor? (Or what if you don’t?)
That is fine, we find clients will typically get involved in one of three ways:
- DIRECT: self-directed clients may typically allocate a portion of their portfolios to be managed by us directly through the Linear Platform. [Click here for further detail on our Managed Portfolios or contact us for further information]
- ADVISOR DIRECTED: clients who already have a trusted advisor often like us to come and talk to them & their advisor to explore the suitability of our portfolio options within their broader portfolio goals & objectives. [Contact Us for more information]
- FULL SPECTRUM FINANCIAL PLANNING: clients requiring holistic financial advice who do not already have a trusted advisor might choose to engage us in an Advisory relationship whereby we can help with strategy, retirement planning, SMSF’s, insurance & even finding a better deal on your home-loan. [Click here]