Latest Quarterly Letter

15th May, 2025

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.

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.