Investment Management

Choosing the Right Investment Advisor

Investing can be a powerful tool in building wealth and achieving your financial goals. Investment earnings compound, presenting one of the few instances in life where time becomes an important friend.

A significant portion of American households engage in stock and bond markets each day. Whether your participation is continuously monitored across a variety of accounts or limited to your employer retirement plan, having a disciplined investment strategy is a crucial element in your financial peace-of-mind. After all, each year our dollars lose purchasing power to inflation.

Like life, investment journeys aren’t smooth, and success is never guaranteed. The financial landscape is riddled with stories of individuals facing hardships due to the advice of unethical or incompetent advisors. Nevertheless, the path can be much smoother (and simpler) with the right investment advice.

Group of business professionals discussing investment strategies.
Diverse group of people in a meeting

Passive Capital Management’s Model of Excellence.

At PCM, competence, integrity, and diligence are the core of our investment management service. Since 2007, PCM has faithfully fulfilled its commitment to crafting low-cost, tax-efficient, and transparent investment portfolios and maximizing the likelihood of a successful investing experience for our clients.

Our commitment is to offer unbiased financial advice that prioritizes our clients’ interests. As a fee-only Registered Investment Advisor (RIA) adhering to the highest fiduciary standards, we do not accept commissions or any other forms of payment for investment products.

Investment Management Philosophy

  • Our guiding principle is simple: Capture the returns of the global capital markets, in their entirety with as little Wall Street frictional cost as possible.

    We advise clients to pay for things that add value. This would include thoughtful asset allocation, diversification, disciplined rebalancing, tax efficiency, and most importantly advice, planning and client service.

    Don’t pay for things that don’t add value. Examples of this would be market timing, stock picking, manager selection and high-fee complex products.

    We have a client-focused approach to investment management, dedicated to creating personalized long-term investment strategies that resonate with our clients’ distinct objectives, risk tolerances, and time horizon.

    Comprehensive Strategy Key Pillars:

    • Strategic planning and sound advice
    • Broad diversification among asset classes to mitigate risk
    • Disciplined rebalancing
    • Using low cost-efficient investment vehicles
    • Maximizing tax efficiency

Let Us Help You Achieve Your Investment Goals

Schedule a consultation or call us today to explore how PCM can support your investment journey.

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Investment Strategy

Our investment process is structured around four core stages:

Design

In this initial phase, we work alongside our clients to craft a long-term strategy that harmonizes their financial objectives. Our guidance helps clients establish SMART (Specific, Measurable, Achievable, Relevant, Time-bound) investment goals. These objectives serve as a foundation for defining strategic asset allocation targets and implementing risk control measures.

Develop

Armed with a well-defined Investment policy, we focus on constructing a globally diversified, passive portfolio aimed at owning the global capital markets. By owning capital markets in their entirety, we’re able to mitigate risk to our client’s overall portfolio should one company, industry, or geography suffer market declines for any reason.

Implementation and Monitoring

We aim to achieve the desired portfolio configuration by utilizing broadly-diversified asset class Mutual Funds and ETFs.  This ensures our clients are “owning the capital markets” while their portfolios remain transparent, liquid, and flexible while minimizing costs. .

On-going Client Communication

We hold regular, periodic portfolio reviews with clients to go over account performance and future needs.

Building Your Portfolio

At PCM, we avoid making speculative bets with our clients’ funds. We are product agnostic and know we cannot predict the future. Hence, we don’t try to time the market or switch managers based on past performance. We know that over time, this erodes returns!

Remember…

NO ONE HAS A CRYSTAL BALL!

Instead, we are committed to selecting asset-class funds based on their risk and reward profiles and their correlation with one another, ensuring that our client’s portfolios are well-positioned to meet their investment objectives while minimizing risk and costs. We construct low-cost, tax-efficient portfolios of globally diversified assets. These portfolios are tailored to suit each client’s specific return goals, risk tolerance, and time horizon offering a simplified and practical approach to investing, even in the face of market volatility.

Team brainstorming session
SPIVA® U.S. Scorecard
S&P Indices Versus Active

Percentage of managers underperforming their respective benchmark

Source: S&P Dow Jones Indices LLC,. SPIVA Year-End 2023 US Scorecard. Data as of December 31, 2023. Table is provided for illustrative purposes. Past performance is no guarantee of future results.

  • Large Cap
  • Mid Cap
  • Small Cap
  • 1Yr Period
  • 59.7%
  • 49.7%
  • 48.3%
  • 5Yr Period
  • 78.7%
  • 65.9%
  • 61.1%
  • 10Yr Period
  • 87.4%
  • 80.4%
  • 88.3%
  • 20Yr Period
  • 93.0%
  • 92.8%
  • 95.7%