| OUR PHILOSOPHY |
 |
|
|
|
|
|
 |
| WISDOM |
 |
|
“During the three-plus decades that passively managed funds have been available,
they have provided for their investors returns substantially superior to the returns
achieved by actively managed equity funds.”
John Bogle and Burton Malkiel
|
|
|
|
|
|
OUR INVESTMENT PHILOSOPHY - OVERVIEW
Conventional wisdom dictates that investment products and investment professionals generate returns for investors... the founders of PCM believe otherwise.
PCM understands that asset classes generate returns; we believe that investment products as a group are a commodity.
- Markets are efficient
- Expected returns are a function of risk
- Diversification is critical
- Asset allocation is the primary determinant of performance
We believe asset allocation determines performance, not asset managers. Therefore, the best strategy is to gain exposure to the appropriate asset classes in a cost-effective manner, by avoiding excessive trading commissions, taxes and market-timing penalties.
We do not try to outsmart the markets, predict the future, or take guesses with our clients' money. We structure portfolios with low-cost, passively-managed asset class funds.
|
