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).
Key Documents:
- Latest Quarterly Client Briefing & Portfolio Performance Updates:
- Click Here (Q4 2020), with Video Presentation
- Click Here (Q3 2020)
- Click Here (Q2 2020)
- Click Here (Q1 2020) - Video Presentation link
- Click Here (Q4 2019)
- Click Here (Q3 2019)
- Click Here (Q2 2019) ⇐Expanded Discussion of Portfolio Strategy
- Click Here (Q1 2019)
- Click Here (December 2018)
- Click Here (September 2018)
- Click Here (June 2018)
- Click Here (March 2018)
- Click Here (December 2017)
- Click Here (September 2017)
- Click Here (June 2017)
- Click Here (March 2017)
- Click Here (December 2016)
- Click Here (September 2016)
- Click Here (June 2016)
- Click Here (March 2016)
- Click Here (December 2015)
- Click Here (September 2015)
- Click Here (June 2015)
PCM's 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.
If you would like further information, please Contact Us.
About Our Portfolios:
- GREAT INVESTMENT PERFORMANCE: Near 'Equity-like' absolute returns over the longer term with a capital preservation mandate and significantly less volatility. Targets consistently positive returns over any rolling two year period, well above term deposit interest rates. Compare our results (& the diversification we have) with your current portfolio.
- GENUINELY ABSOLUTE RETURNS: zero correlation & zero beta to the equity market... a growing requirement for an ageing population.
- LESS 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 (or inverse) ETFs, no opacity.
- LIQUID & SIMPLE: PCM’s Portfolios only using big, liquid, exchange traded investments (so it’s easy for you to convert some or all or your portfolio to cash in a timely manner if you wanted to).
- TRANSPARENT: Full access to your investments at all times... totally transparent portfolios held 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 your money, but it is safeguarded by a platform with a responsible entity (ASIC regulated & licensed) and your investments are held transparently in your name by an independent Custodian (that is also regulated & licensed by ASIC). 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’.
- MORE CONSISTENT RETURNS: Monthly returns are more consistently positive than conventionally constructed portfolios (such as a 60/40 Stock & Bonds portfolio)
- 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 & 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 $25,000 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 higher risk-adjusted return than many other portfolio management services.
- 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.
If you would like further information, please Contact Us.