Frequently Asked Questions

What is your fee structure?

Under our typical fee arrangement, the first $1.5 million in assets is billed at a 1% annual rate, the next $1.5 million at 0.80%, the next $2.0 million at 0.60% and 0.5% on any additional balance above $5.0 Million. We charge a discounted rate for fixed income and mutual fund only portfolios. For fixed income we charge 0.35% on the first $500,000 and 0.25% from $500,000 to $2.5 million. For mutual fund only accounts we charge a 0.50% flat rate on the account balance. When appropriate, fees may be modified to reflect the amount, timing and special characteristics of the assets under supervision. We accept no other compensation of any kind, directly or indirectly.

Can you provide references?

Of course. We’re always willing to provide references from current clients. We also provide references to other professionals our clients may need, such as CPA’s, attorneys, and others.

How often can I meet or speak with my advisor?

We encourage active communication: meetings and consultations are available quarterly or more often if necessary.

How often is my portfolio reviewed; how actively is my portfolio managed?

At PCM, we work closely with our clients to develop an appropriate asset allocation policy. Once these target levels are set, we do not shift allocations based on near-term market moves. We do, however, actively manage the allocation process to continually rebalance portfolios to the target allocation. All target allocations are reviewed at least annually to assure that a particular asset mix continues to meet the current needs of the clients.

Will you help me understand my investments?

We are happy to provide investment education on topics about which clients wish to learn more; from particular investments we recommend to broader savings and investment issues. We typically take our queue from you, the client, as to how much and at what level of education you want.

Can you work with my CPA and attorney to coordinate estate and tax planning issues?

Absolutely. We do so for most of our clients, allowing them to spend that time doing things that are truly important to them.

Can I view my accounts online?

Yes! If your accounts are held at any of the custodial institutions we work with, you can view account information and activity.

How does PCM ensure my privacy?

Privacy is of utmost concern to us. We have strict internal confidentiality policies and employ data security measures to safeguard client information. We never mention to others who our clients are, with the exception of those clients that are willing to provide references to others.

How long will it take to transfer my account to PCM?

From the initial contact, it usually it takes anywhere from 2 – 4 weeks to get your entire account transferred depending on the type of assets you hold. However, PCM is not the custodian of client assets – we merely establish an institutional account for our clients and obtain authority to implement the portfolio.

Will I have to sell all or part of my current investments to work with you?

In most cases, there are some significant changes we would recommend, but often they can be implemented over time, or can be adapted to some of your current holdings. For example, some clients may have significant unrealized investment gains in their current holdings that could trigger large income taxes if they were sold. In other cases, clients have specific holdings that they have a particular desire to keep. In all cases we will use our best judgment to recommend the most appropriate portfolio for you, then adjust and adapt it to accommodate specific concerns.

I have some investments I want to manage on my own.
Can I still work with you?

Yes. We can set up a separate account that will hold the assets you would like us to manage. If you prefer, your self managed account can be set up on our system as an unmanaged “custodial” account, which then allows us to execute trades for you that you direct us to make, and to prepare tax and performance reports on your self managed assets.

Can you provide advice on how I should invest the money in my company’s 401(k) Plan?

Yes. If you are actively participating in your company’s 401(k) plan, we will provide guidance on how to choose among the available funds in your company plan.

What is the process to start working with you?

We recommend starting with a brief 10-15 minute phone call to understand what your overall objectives and needs are, and to plan the first meeting. Before our first meeting, we will send you an investor profile form and a financial planning questionnaire to gather some information.

During our first meeting, which normally lasts one hour, we will explore your needs and expectations in much more detail, introduce you to our investment approach and reasoning behind it, and describe how we believe our approach could best be applied to your situation. We will answer any questions you might have about how we would work with you.

If our approach makes sense to you, we would then offer to prepare a specific investment proposal, at no cost or obligation to you. In our second meeting, we will present this proposal and show you exactly how we would design and implement a customized investment program for you, and how we would address any financial planning issues. At this point, if you have decided to work with us, we would take you through the steps of establishing our advisory relationship and the specific implementation steps for your investment program.

Please contact our office at 802-649-1666. or click here to send us an e-mail inquiry.